Chapter 618 The smooth start of the cosmetics and skin care industry

Originally planning to use a few years to complete the construction of so many medical institutions, it actually far exceeded Ye Zishu's original plan, mainly because Taiji Group has money.

These infrastructure projects were handed over to Wancheng Foundation, and most of the money was earned by Wancheng Foundation. This is more meaningful than directly investing in Wancheng Foundation.

And this year is different from previous years. Last year, due to exchange rate issues, the money they earned overseas actually adopted the method of deferring the payment period, and it was not until the end of the year that they returned to China on a large scale.

The money earned from overseas this year is returned to China in time, and I have a lot of money in hand. If I don’t use it for investment, I can only deposit it in the bank. Whenever there is an investment opportunity, depositing it in the bank is the most uneconomical business.

With the construction of thousands of hospitals and the sudden increase in its business this year, Tai Chi Group should not have a high balance this year, unless their new business can bring them good results in the next few months.

As the previous funder of Wancheng Foundation, the scale of direct investment in Wancheng Foundation may be very small this year, and there will be no further direct investment.

Fortunately, Wancheng Foundation is now on the right track, and its industries can also generate profits, but it does not rely heavily on direct investment for development as before.

Even if Taiji Group has enough funds in its hands, in order to develop the domestic medical industry, it dare not use them casually, and needs to reserve enough funds to deal with the next situation.

Although the membership method provided by Leaf Book can solve many problems, it actually caused great trouble to Taiji Group in the short term.

On the surface, members need to pay a membership fee every year to get discounts. In fact, many people may just use it to relieve their urgent needs.

That is to say, only those whose family members are sick are willing to urgently purchase the medical institution membership of Tai Chi Group. Once they are cured, they may stop paying the fee.

Don't think this is impossible, but it is very possible. No one will give their money to others for no reason. For future protection, unless it is a compulsory measure, they are not willing to consider such a long-term.

In order to cope with this situation, if the membership fee has been suspended for more than one year, strict review will be required for re-purchase, and only people who are not sick can be allowed to purchase, and the discount will be reduced.

The reason why there are no such strict restrictions on the first purchase is mainly because Ye Zishu emphasizes that the purpose of doing so is to give domestic patients a chance to seek medical treatment at a low cost, which is out of kindness.

But the strictness behind it is completely out of commercial considerations. After all, they are a commercial organization.

Occasionally doing good deeds is a social responsibility. If you keep doing this, you will close your business sooner or later.

Fortunately, these drugs and medical equipment are all produced by Taiji Group itself, and the profit and loss are all book figures. In fact, there may be a loss, but it will not be particularly large.

The main loss is not from medicine. In fact, the production cost of medicine is not very high. The most expensive part is the research and development expenses. The technical information of these medicines is provided by Yeshu, and it doesn't cost much.

The real loss may come from medical equipment. Although the technology is also provided by Leaf Book, the materials used have to be paid for. In addition to processing costs, the price cannot be very low.

Just like the fully automatic surgical equipment mentioned above, the cost of the hardware alone is several million yuan. If the added value is included, the cost may be even higher, which is impossible to save.

If members perform surgery, they can only charge hundreds of thousands of yuan, and the remaining costs must be borne by Tai Chi Group. When the number of members is not large, it is basically a loss.

What's more deadly is that most of the first batch of members will be patients. This is also expected, and they are likely to be seriously ill.

The result of this is that Taiji Group will face large-scale losses in the early stage. If each member loses tens of thousands, as long as there are tens of millions of members, it will lose hundreds of billions of yuan.

Don't think it's impossible. With such a large population in the country, coupled with the imperfect medical environment before, it is entirely possible to accumulate a large number of critically ill patients and a concentrated outbreak.

It can be said that the medical business under the Tai Chi Group is optimistic in the long run, but it will face various problems in the short term, and it may be their first loss-making business.

Just when everyone was paying attention to the pharmaceutical business of Taiji Group, their cosmetics and skin care products were quietly launched for sale three days after the press conference.

They use two sales channels in parallel, one is the self-operated store channel. They have a sales system all over the world before, and it is very easy to establish their own brand self-operated stores.

The other is to go through the agency sales channel, which is a new sales attempt for them, and the purpose is to sell their cosmetics and skin care products all over the world.

In such a relatively fiercely competitive market, it is very likely that you will not be able to win others just by relying on your own specialty store channels, and there is a possibility of failure no matter how good the product is.

Therefore, we adopt the method of joining as an agent. If you want to sell their products as an agent, you must pay an expensive agency fee. If the agent wants not to lose money, you must desperately promote their products.

In order to balance self-management and agency, Taiji Group increases the density of its own stores and gives priority to agents in supply. If the development of agents is not as expected, relevant restrictions on self-operated channels can be voided.

In this way, the agents will face tremendous pressure, not only to face huge losses in agency fees, but also to face the pressure of competition from Taiji Group’s self-operated channels.

Since they are under so much pressure, they will naturally be rewarded. Carrot and stick are always the best combination. If the agent can exceed the task, Taiji Group will give a certain amount of cash back.

If 50% of the sales volume is exceeded, Taiji Group will return 5% of the cashback. If 100% of the sales are overfulfilled, the cashback rate will be 10%. The more sales, the higher the cashback rate, up to 20%.

However, it is basically impossible to get a 20% cashback ratio, unless Taiji Group underestimated the potential of a certain market, which is extremely rare.

Generally speaking, if the agent works hard, it is still possible to get a 5% cash back, but it is very difficult to get a 10% cash back.

I thought that the popularity of medical news during this period had overshadowed their news about cosmetics and skin care products, and they might have a cold start because they felt that their publicity had been affected to a certain extent.

As a result, they did not expect that after their products went on the market, they were unexpectedly better. Although there was no phenomenon of crowds, they were much stronger than they expected.

On the first day, it sold 2 billion yuan worldwide. This figure may not seem like much, but it is actually very scary. If this sales volume is maintained every day, it will be more than 700 billion yuan a year.

Not to mention Taiji Group was surprised, even those distributors who spent a lot of money to obtain agency qualifications also felt a little incredible.

The reason why they are willing to spend a lot of money to be an agent must be optimistic about the market of these cosmetics, but they think that as a new brand, they may face certain difficulties in the early stage, and many channel dealers are ready to fight a protracted war.

Some agents even think that if the market performance is not good, they will spend their own money on advertising to increase the exposure of the brand. Otherwise, they may lose their agency qualifications if the situation cannot be opened for a long time.

In the following week, their sales varied from high to low. The low day was only 1 billion yuan in sales, and the high day was 2.8 billion yuan in sales, but overall it was still higher than the 2 billion yuan on the first day. reached 2.15 billion yuan.

According to the statistics of the sales data for one week, the sales of skin care products are the largest among the products sold, accounting for as high as 90.5%, becoming the absolute main force of sales.

In fact, they also had an estimate for such a situation, but they didn’t expect the disparity to be so large and the competitiveness of the cosmetics business to be so low. If they were not often sold together, it might be even lower if they were sold separately.

In fact, Taiji Group's cosmetics are also competitive to a certain extent. The quality is not inferior to that of global big brands, and even because they have more advanced processing technology and equipment, the quality is even better.

It's just that ordinary consumers can't feel this quality difference in a short period of time. Coupled with the disadvantages of new brands, most consumers are not interested in their cosmetics.

But skin care products are different. Due to the existence of bioactive liquid, their skin care products have an absolute advantage compared with their peers. Even if the price is more expensive, consumers are willing to pay for it.

The reason why they believe so much in the miracle of the biologically active liquid that Taiji Group said is that they have to delay the hotly debated medical issues during this period of time, so that many consumers recognize the strength of Taiji Group in scientific research.

In the eyes of many consumers, to develop so many medicines with miraculous effects, it is not a problem to get a miraculous bioactive liquid.

In addition, the price of skin care products is much higher than that of cosmetics. A set of high-end brand skin care products can cost 12,000 yuan for only three months.

The price of a set of mid-end brands is 8,000 yuan, and the price of a set of low-end brands is 4,000 yuan. The domestic price of low-end brands is much cheaper, and the price of a set is 2,000 yuan, which is twice as cheap.

As for mid-to-high-end brands, the price is the same at home and abroad. Low-end brands are to take care of ordinary domestic consumers. Rich people can spend more to buy mid-to-high-end brands, which is not bad anyway.

In fact, a set of low-end brands of 2,000 yuan is not cheap in China. In order to deal with this situation, domestic brands are sold separately, and consumers can buy one of them.

In fact, it also shows the characteristics of domestic consumption. The domestic essence is the most sold, occupying an overwhelming advantage, and a bottle of essence for three months is only sold at 350 yuan.

The domestic salary has risen quite fast this year. Since the average monthly salary given by his company has reached 1,000 yuan, other companies have had to raise their salary, and the average monthly salary in society has also reached 700 yuan.

After deducting the impact of the salaries of his industries, the salaries of other social enterprises should have reached more than 500 yuan, and by the end of the year it should be close to 600 yuan.

This was the purpose of his desperate efforts to increase his salary. Otherwise, it would be difficult for social salaries to rise so fast, and it would be difficult for their company's high-tech products to be sold in China.

Another reason is the correctness of the publicity strategy. Due to the high popularity of medical topics, Tai Chi Group's cosmetics advertisements are posted on the platforms under this topic on the Internet.

Many users just saw the medical news about Tai Chi Group, and then saw their advertisements for cosmetics and skin care products. Naturally, they wanted to try it. After all, the favorability was still lingering in their hearts, so there was no reason not to support it.

All in all, Taiji Group's cosmetics and skin care products started off very smoothly. If there is no accident, it should be even smoother in the future, because everyone will know how effective it is at that time.