Is Li Jiaqi’s original flower Xizi expensive?
Hua Xizi, who gradually decoupled from Li Jiaqi, once again became a hot topic with Li Jiaqi.
In the live broadcast of Li Jiaqi on the evening of September 10th, when some netizens questioned that Hua Xizi’s eyebrow pencil was getting more and more expensive, Li Jiaqi said: "Stop talking nonsense. The eyebrow pencil has always been 79 yuan, which is difficult to buy." "Buy domestic products … sometimes I will find my own reasons. Have you got a salary increase in recent years? Have you worked hard?"
This statement immediately caused a heated discussion and continued to ferment on the Internet.
In the early morning of September 11th, Li Jiaqi issued an apology in Weibo: "I’m a salesperson at the cosmetics counter. I know that everyone’s work is hard and not easy. I’m really sorry that what I said didn’t meet your expectations." I didn’t reply immediately because I wanted to apologize to the girls in the comments after I finished my work. Anyone can put forward opinions and ideas about the products in the live broadcast room. As an anchor, I should always bring you positive energy and learn to control my emotions.
Source: Weibo.
But such an apology did not calm public opinion. Hot topics in Weibo, such as "Hua Xizi is the exclusive monetary unit of migrant workers", are constantly spreading on the Internet, causing "How expensive is Hua Xizi?" Wait for questions. "How much commission did Hua Xizi give Li Jiaqi?" ETC。
Source: Little Red Book
Aside from the problem of poor speaking style, it is not surprising that Li Jiaqi supports Hua Xizi. In fact, the relationship between Li Jiaqi and Hua Xizi can be traced back to the beginning of the brand.
Hua Xizi was founded in Hangzhou in 2017, with the core concept of "Oriental makeup, flowers nourish makeup". Among the brands that admire oriental cosmetics, Hua Xizi is undoubtedly the most eye-catching. From carved lipstick to compact with complex patterns, Hua Xizi has attracted the public’s attention with unforgettable packaging.
But what really made Hua Xizi rush out of the circle was his deep cooperation with Li Jiaqi. In 2019, when other brands were still deeply cultivating channels, Hua Xizi directly cooperated with Li Jiaqi, and achieved a sales jump with the help of the traffic and channel advantages of Taobao’s leading anchor.
According to the information data from Morketing, an integrated mobile marketing platform, Hua Xizi fans entered the live broadcast room in Li Jiaqi for the first time in March 2019. On the eve of June 18th of that year, Li Jiaqi introduced Huaxizi carved lipstick, and both products became popular products of Huaxiziming. In September of the same year, Hua Xizi officially announced that Li Jiaqi was the chief recommendation officer of the brand.
Source: Hua Xizi
The cooperation between Hua Xizi and Li Jiaqi has brought a very eye-catching performance. During the promotion period in double 11 in 2019, Hua Xizi ranked seventh in Tmall beauty category with a GMV of 250 million yuan. By 2020, Confucius ranked first in the domestic beauty cosmetics sales list with a GMV of 235 million yuan. At that time, double 11 ranked second in Tmall beauty category with sales exceeding 470 million yuan.
In addition, according to statistics, in the first seven months of 2019, Hua Xizi participated in 45 of the 118 live broadcasts in Li Jiaqi. From January to February, 2020, 40% of the sales of Huaxizi flagship store came from the live broadcast room in Li Jiaqi. At the public media conference in mid-2022, Hua Xizi announced his oriental beauty research and development system, and announced that Li Huiliang joined Hua Xizi as the chief scientist at the beginning of the year. At that time, Shang Lu, the chief product officer of Hua Xizi, told reporters that Li Jiaqi’s proportion in the company’s entire business was no more than 5%, and Hua Xizi was more interested in letting Li Jiaqi participate in co-creating products.
Although Hua Xizi is gradually unbundling Li Jiaqi, the marketing cost must be very high to reach such a deep binding cooperation with Taobao’s leading anchor.
Confucius is not a listed company and does not disclose financial data to the outside world. However, the premium power of beauty brands is realized through marketing. This is an indisputable fact and a common phenomenon in the industry.
Many insiders told Interface Fashion that for ordinary cosmetics, the cost of raw materials generally does not exceed 10% of the total cost. The price of packaging materials may even be higher than the price of raw materials. This means that most of the brand’s terminal retail expenses are still spent on marketing.
Huaxizi positioning high-end products, in terms of price, is indeed at a higher level among domestic brands.
According to the statistics of Guoji Feigua and Guoji, in April and May of 2023, Huaxizi ranked first in GMV of Tik Tok platform, and the average unit price fluctuated around 170 yuan. For reference, the average unit price of Perfect Diary is 124 yuan, and the average unit price of colorful candy under Polaiya’s make-up brand is 155 to 159 yuan. The unit price of high-end beauty products in Mao Geping is relatively highest among domestic beauty products, ranging from 241 yuan to 262 yuan.
The eyebrow pencil that caused controversy in the Li Jiaqi incident is a single product launched by Hua Xizi after lipstick and gas powder. The blogger in Little Red Book listed the price per gram of Huaxizi Eyebrow Pencil and other brands.
The price of Hua Xizi’s eyebrow pencil in 69 yuan is 0.07 gram, and the price per gram is as high as 985.71 yuan. According to the same unit conversion, Shu Uemura’s classic machete eyebrow pencil only costs 58.82 yuan per gram. Of course, there are also expensive eyebrow pencils from domestic and foreign brands. For example, Beifeiling Eyebrow Pencil costs 2812.5 yuan/gram, and COLORKEY Eyebrow Pencil costs 857.14 yuan/gram.
Source: Little Red Book
In addition, Hua Xizi’s eyebrow pencil is OEM. In addition to OEM business, its foundry, Shanghai Chuangyuan Cosmetics Co., Ltd. has its own brand-Marie Delgado, which is another well-known brand in China.
Hua Xizi’s domestic beauty brand pricing is indeed high, but expensive should not be the original sin of the brand. Brand premium ability is a powerful weapon for enterprises to obtain higher sales price, higher profit rate and better profit. The success of luxury brands is the best example, and if domestic brands can have a high premium, it is also an affirmation of "Made in China".
Li Jiaqi defended Hua Xizi’s brand mistake, saying it was blamed on consumers. If one day Huaxizi can own the same brand value assets as YSL and CHANEL cosmetics, Li Jiaqi doesn’t even need to say much when facing the high price query. Source: Interface News
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