ZHU Yongling
Over the past year, domestic fashion and beauty brands have frequently found themselves in pricing controversies. Some have ignited public sentiments.
In September, Taobao’s top live streamer Austin Li Jiaqi raised eyebrows with remarks that offended customers and caused a major fuss.
Other brands face questions about their conspicuously high prices. In November, Forest Cabin, a Chinese skincare brand that focuses on camellia oil, introduced a fragrance priced at 1,700 yuan (US$240) for 75 ml, surpassing the prices of some luxury brands.
As winter arrives, a chill has descended on the down-jacket market. Lifease’s thousand-dollar goose-down jacket prompted various discussions. Skypeople has a 7,000 yuan jacket. Bosideng, transforming into a high-end brand, put its prices up by 1,600 yuan, but hasn’t done much else.
Lower prices remain the safe zone for Chinese brands and brands aspiring to the high end are reluctant to return to price wars.
Forest Cabin reduced the controversial perfume’s price by 200 yuan, but the price per milliliter remains higher than that of Chanel and Hermes.
Fashion and beauty brands aiming to impact the high-end market want to be recognized as premium by consumers. For a long time, the mid-to-high-end market for domestic fashion and beauty has been dominated by international brands. However, domestic brands are working hard to narrow the gap, especially in terms of new products. However, consumers still hold onto preconceptions of affordability and value for money.
Consumers are more rational and cautious in their choices, increasingly sensitive to value for money.
They are willing to pay for the research and manufacturing costs of high-quality products, but not many new labels on old scents and resist costs related to marketing and other aspects unrelated to product quality.
However, for brands, achieving high-end status is not solely determined by improving product quality. It also requires long-term brand value building, sustained by the brand premium paid by consumers.
