Huaqiang Bei, who sells no iPhones and cosmetics, has quietly begun to transform itself into a new type of makeup makeup makeup makeup makeup makeup makeup makeup makeup makeup makeup makeup makeup makeup makeup makeup maker.

 Huaqiang Bei, who sells no iPhones and cosmetics, has quietly begun to transform itself into a new type of makeup makeup makeup makeup makeup makeup makeup makeup makeup makeup makeup makeup makeup makeup makeup makeup maker.

Reporter | Wu Rong

Come out of Exit A of Huaqiang North Metro Station in Shenzhen and walk eastward along Zhenhua Road. Its a short distance of 500 meters. You will pass through 4 or 5 cosmetics wholesale cities. Yuanwang Digital City Phase II, Mingtong Digital City, hualianfa square, Bauhinia city and Manha square, before they can replace the signs of the digital city, have quietly transformed into an import beauty business.

Mingtong is the most lively one. Shops in the mall are densely packed with Hong Kong and Japanese and Korean elements, such as Zhuosha Trading and Tokyo Life. Most of the showcases are pop-ups youve seen in your circle of friends - Fan Bingbings same vinegar mask, sun-resistant sunscreen, Keyans high moisturizing cream, Estee Lauders small brown bottle...

In the noise, its easy to forget that it was once the First Street of China Electronics which was as famous as Zhongguancun.

However, due to the impact of e-commerce, the closure of subway construction and other factors, Huaqiangbei has experienced a sharp decline in passenger flow in the past few years, and the symbol labels of the electronics manufacturing industry in South China are also fading.

At the moment, it and its gold diggers are still undergoing a long transformation, and beauty is the direction they are going.

Buy imported cosmetics and go to Huaqiang North

Beautiful girl, come here early today to pick up the goods. Li Xiaomin, who had just eaten, stood up in a hurry when he saw a visitor passing by and solicited business in raw Cantonese.

Even though some shopping malls are transforming into cosmetics, Huaqiang North still wakes up at 12 noon every day. As before, from noon to 11 p.m., the later, the busier. Li Xiaomin said.

Last year, through the introduction of Chaoshan villagers, Li Xiaomin in his early thirties sold only about 15 square meters of daily makeup in this shop. If there is no sign on the genuine cosmetics and other Chinese words reminder, at first glance, it is a bit like Japan Matsumoto Qing Pharmaceutical Cosmetics Shops reduced version.

Only the checkout counter and a narrow passage were left. The floor was filled with brown cardboard boxes, some of which had been cut open for guests to choose from, and some of them were placed in a corner in disorder.

In Huaqiangbei, more and more cosmetics wholesalers like Li Xiaomin are coming. Among them, 80% are from Chaoshan, Guangdong Province. They always have the tradition of holding a group to do business.

Wang Ran, a sophomore, and her aunt were among them. My aunt sold digital products and electronic spare parts in Huaqiang North before, but gradually mobile phones could not be sold. Huaqiang North market declined. Since last year, it has changed to wholesale imported skin care products in Mingtong. Wang Ran said.

In addition to Mingtong, this summer, they opened their store to the next Hualian Development Square. At present, there are three stores and six warehouses, all of which are for imported cosmetics. Basically, every day is shipped, and the mask is sold in a hundred boxes a day.

Since the new semester has not yet started, Wang Ran sometimes helps in the shop. But more often than not, they advertise through circles of friends. College students who have been planted grass by Xiaohongshu and pursue imported skin care products but have little income are the easiest and most stable customers for her.

Here, the business model of the era of electronic commodities is continued, and the price difference is the absolute advantage of cosmetics wholesalers.

For example, the price of Freeplus facial cleanser is 150 yuan at Tmall flagship store, 80-90 yuan by Ming Tong, DHC lipstick is 40 yuan in other micro businesses, we are 25 yuan, and the distillers grains mask Tmall sells 140 yuan internationally, where we will set 60-80 yuan and float with the season. Li Xiaomin said.

Boss, is your product genuine?

The price difference comes from the different channels of purchase.

As for the channel of purchase, Li Xiaomin answered lightly, We are all looking for our own channel to send cosmetics imported from Japan to the Mainland. Wang Ran seems to be a bit secretive. Its a bit difficult to explain. Theres such a way anyway.

Lin Fengping, general manager of Fujian Aimei Cosmetics Chain, speculated that Huaqiangbeis source of goods may come largely from aquatic goods, as well as from foreign duty-free shops, Haitao substitution, and so on. It also does not rule out the possibility of fake goods. He thinks the profit is considerable. Take Lancome as an example, the discount for purchasing goods in department stores is 85%, while the discount for waterborne goods is generally 60%.

Ling Xiaojian, a merchant of Hualian Development, confirmed this conjecture to some extent. At the beginning of this year, he and his friends decided to start a business in Huaqiangbei, which currently operates more than 300 foreign brands, mostly from duty-free stores in Japan and South Korea.

These are all the goods that we asked brush hands to brush back from Japan and South Korea. Ling Xiaojian is familiar with the rules of this circle. He can not only get discount, but also get profit rebate. The duty-free shop can also refund the difference. He says returns are usually given to brushers to earn discounts on their own.

The complexity of purchasing channels is clearly reflected in the inventory of different wholesalers.

You will find that the situation is different in each store. In some stores, one brand has only about ten bottles of products, but when you go to another store, you will find a lot of stock. Lin Fengping said.

However, waterborne goods are not necessarily fake, referring to the source of goods that have not passed the formal customs declaration procedure. However, no one can determine the authenticity and quality of goods bought outside the counter. In Hong Kong, China, laws and regulations allow the sale of water goods, but in mainland China, the sale of water goods is still a sideball business.

At present, there are strict regulations for imported cosmetics and skin care products to enter the mainland market of China. Simply put, there are two regular channels to get goods, one is through the brand side (that is, manufacturers), such as Estee Lauder, Qianbi, Chanel, Dior, etc. in China is to adopt direct marketing; the other is through the brand side in Chinas general agent or general authorization. Lin Fengping said.

Wu Qinglin, chairman of Anhui Merrill Lynch cosmetics chain, told Interface News that imported brands into China need not only entry approval documents, but also authorization certificates. They now have a good way of judging whether they are a regular supplier or not, See if it can authorize you online.

But those who come to China to purchase goods from Qiangbei will not care too much about authorization.

There are also a group of people who specialize in online shopping. But after they have seen it once, they wont come back. You can easily make money by distributing the products publicity map and price in the circle of friends. We support a distribution service here. Li Xiaomin said.

These people are essentially more like agents. The word one proxy can be seen everywhere in Huaqiang North. Ling Xiaojian sometimes instructs the agent how to deal with the customers consultation. Ask the source of your goods, it is said that the proxy has been purchased. If you ask for a ticket, you will say that the tickets are reserved for students from Korea and Japan, because they can be returned. If you say that, everyone who understands it knows it.

Li Xiaomins teaching of selling goods in the circle of friends is quite skilled. The amount of $114 yuan for the delivery of her creams in her store is about $130, and the agents are priced at around 130 yuan in the circle of friends. Li Xiaomin will help express the delivery, and the sender will write the name of the agent and send the address according to the request of the other party. In Huaqiang North, express delivery can still be delivered at 11 p.m.

It is also because of the opacity of the channel of purchase that merchants are often asked whether the goods are genuine.

Ling Xiaojian said that the question he was asked most was: Boss, do you have any certificates or authorizations for your goods? Then he wrote a long paragraph on his online store page, and named it the insides of a bad-tempered owner who sells genuine goods.

Some are (authorized) and some are not. But is there any proof that the product is genuine? A certificate and authorization is too good. There are online design of false seals, all one-stop services. He wrote.

In the face of doubts, Li Xiaomin has no good way to prove it. She usually opens the package and gives it a look. This facial cleanser, the international version is relatively light, the local version is relatively strong, the cap is big and small, you know what you have used.

Why Beauty Makeup Becomes the New Direction of Huaqiang North

After opening a shop in Huaqiang North, Ling Xiaojian quickly registered a store in Alibaba 1688 to display some of the hot-selling goods.

This shift dates back to 2013. This year is the turning point of Huaqiang North from prosperity to decline.

Due to the construction of Shenzhen Metro Line 7, Huaqiang North Main Road is blocked. Traffic is inconvenient and dust is flying. The four-year renovation period has greatly reduced the flow of people here. On the other hand, during this period, online component stores are springing up, and the impact of E-commerce makes this entity giant a little caught off guard.

The emergence of home-made mobile phones and the growing branding of mobile phones have also made businessmen a bit panicky.

Huaqiang North has experienced a tide of empty shops in recent years, from its bustling past. During the peak period, there were about 34,000 departures. The rest are looking for new ways out. Some have opened snack shops, some sell fruit and milk tea, and others do electronic cigarette business.

But some female consumers spend hundreds or thousands of dollars on cosmetics, and they run out of time in two or three months. Beauty is not only a fast consumer product, but also a high-profit product, or even a windfall profit. Zhang Honghui, general manager of Guangzhou Shangduo Cosmetics Company, said.

At that time, the Chinese market was fertile ground for importing cosmetics.

According to the data of China Business Industry Research Institute, Chinas cosmetics consumption in 2018 has exceeded 400 billion yuan. According to the data of China Customs, the proportion of imported products in the total retail sales of cosmetics in China market has increased from 10.8% to 34.8% in the past 10 years.

This gives hope to Huaqiang North businessmen who have fallen behind in electronic products. According to Wang Rans description, Huaqiangbei has gathered more than 1000 businesses engaged in importing cosmetics, many of which were originally mobile phone digital merchants.

Past experience and geographic advantages also provide the possibility for the transformation of Huaqiang North.

The same product of cosmetics brand has obvious price difference all over the world. Some cosmetics merchants can make profits by using the exchange rate difference to purchase large quantities of cosmetics products at a price lower than that at the counter in Hong Kong, a free trade port. This mode of seafood has been adopted by Hong Kong cosmetics chains such as Sasha, Zhuoyue and Caramel.

Lin Fengping told Interface News that in the Mainland, about 90% of the water cargo comes from Hong Kong. Shenzhen is close to Hong Kong. It has convenient circulation of goods and can save logistics costs. Huaqiang North enjoys these conveniences.

In the past, when people mentioned Huaqiangbei, they immediately thought of waterborne mobile phones and Shanzhai mobile phones. In Zhang Honghuis view, the unique purchase channels originally owned by Huaqiangbei merchants from all over the world are becoming the shortcut for them to transform their cosmetics.

And the passenger flow that Huaqiang North depended on in the past may not be the most important at present.

Pan Jiandong is the manager of China Merchants Department in Yuanwang Digital City Phase 2. He feels that under the impact of e-commerce, the business model has changed. Many cosmetics merchants are looking for a wholesale outlet here to serve as a delivery base. Now they all go to e-commerce and online, not to mention how about going offline. Entities are not that important. Online-offline integration is the trend.

Li Xiaomin also worked as a cosmetics retailer for three years before he opened his shop in Qiangbei, China. Mainly do local brands, but feel that we do not trust the products of micro-merchants, think it is marketing, fake, do not do very well.

Li Xiaomin didnt disclose the sales and profit situation after entering Huaqiangbei, but simply took it with the business is better now than before. With the growing development of the Internet, she feels that peoples acceptance of cosmetics is becoming stronger. Compared with Korean cosmetics, which has a low cost performance ratio, Japanese cosmetics are gaining momentum.

Businessmen have piled in this year, and the rent of berths in Mingtong Digital City has also risen.

Mingtong has undergone a comprehensive transformation since last year. Liu Ming, a staff member of the Ministry of Investment Promotion, said that the investment promotion was nearing the end. Now there are only a few five-square-metre stores on the fourth floor, 600 yuan per square metre. The capital construction fee is 30-80,000 yuan, the charge is 2 to 6, and the electricity and water fee are paid separately.

The second phase of Yuanwang, which is one street away, is now inviting rent warmly because of the late start of the transformation. Pan Jiandong and his colleagues set up tables and chairs on the first floor and presented business cards to those who came to consult.

Perhaps it is uncertain about the transformation. Looking forward to the first and second floors of the second phase as the cosmetic area, the third and fourth floors are still positioned for digital electronics, but the vacancy rate is more than 50%. Pan Jiandong admits that it will take time for Huaqiang to grow up after its transformation, and it will take longer to become a household name throughout the country.

After a long transformation, the underground space of Huaqiang North has shown its embryonic form. In the near future, electronic shopping malls will extend from the ground to the underground, and will also introduce catering, department stores and other items.

On the main street of Huaqiang North Ground, there are still Saige Electronic Market and Huaqiang Electronic World on the one hand, and Maoye World, a cosmetics shopping mall, on the other.

Not far behind the main street, Hualian Fair, Bauhinia City and Manhattan Square are attracting businessmen. Some cross-border cosmetics shops have just arrived and the flowers celebrating their opening have not faded.

(At the request of the respondents, Li Xiaomin, Wang Ran, Ling Xiaojian and Liu Ming are aliased names; besides tagging, the pictures of the articles are taken by journalists.)