Chapter 1158: Profiteering Industry

The cosmetics industry is profitable, but in fact, few of the top wealthy circles in China have risen by virtue of their outstanding performance in the field of cosmetics in China.

On the contrary, the real estate industry accounts for almost half of the wealthy people in China.

If you think so, it's the last so-called cosmetics industry seminar or something. The Huaxia cosmetics star company announced at that time, in fact, on the whole, the scale is not big at all.

The cosmetics industry is considered to be profitable, but there are more profitable industries.

Moreover, while the cosmetics industry is making huge profits, the overall cosmetics market in China is originally so big.

The most profitable high-end cosmetics part is all occupied by foreign cosmetics products. Local cosmetics companies in China can only eat in the low-end cosmetics area.

In the mid-range cosmetics field, the threshold is low and the profit is high. This has led to too many people entering the field and wanting to fight for more benefits.

The competition is too fierce, but the market is so small. After all the calculations, the profit margins have been repeatedly squeezed.

The cosmetics industry is not fighting for product cost, the main competition, in fact, is in the packaging.

The effect of cosmetics itself is slightly worse, and the packaging publicity needs to use ten times and 100 times the investment of cosmetics production costs. In the end, we can seize a considerable market share.

In the end, the customer buys a product at double the cost price at more than 50 times the price. But the cost of cosmetics companies cannot be calculated in the same way. The overall cost is calculated as the cost of production plus the cost of packaging.

In the end, you can get a 300% rate of return. The earnings are actually quite impressive.

But in the end, rich people are not bad for money, and they all go to buy high-end cosmetics.

Consumers who buy mid-range cosmetics are not too rich themselves. It's not enough to buy too many or too good cosmetics. Be a little more careful, and use word-of-mouth products in low-end cosmetics with small profits and quick turnover. In fact, the effect is not necessarily much worse.

As a result, mid-range cosmetics companies actually account for so few market shares.

Mid-range cosmetics companies that can occupy market share are relatively profitable. But to put it simply, it's no longer worth the hands of those real giants.

The real wealthy families are very face-saving.

Looking back, their company focuses on the cosmetics industry, and can only barely maintain a little market share under the siege and interception of foreign products.

Speaking out, is it very face-saving?

If you really have high-end products with core competitiveness, you can develop some reputation in this industry. Of course you can.

However, in the absence of core competitiveness, it can only become synonymous with shoddy and excessive chemical composition. Such a profiteering link is really nothing to worry about for those wealthy families who are a little pursuing.

So you can take a look at the top wealthy groups in China. Some are in the Internet industry, some are in the real estate industry, some are in the capital operation, and some are in the manufacturing industry. Who started by making mid-range cosmetics?

After calculation, the so-called leading industry in the field of Chinese cosmetics is actually average.

In the real wealthy circle of Huaxia, this Yadai cosmetics company is the level of the third-tier giants.

The scale and influence of the third-tier giants are already very high-end in the eyes of ordinary people.

But in the real circle of wealthy families, forces of this grade can only be regarded as peripheral members.

The projects that really make a lot of money are all in the hands of top giants and a very small number of first-line giants. And the third-tier giants are actually not qualified to participate in the cooperation of these projects at all.

In addition to the scale, the third-tier giants, in fact, even the degree of well-informed are also limited.

All kinds of inside information and exclusive news are generally not hidden from the top giants.

The first-line giants are qualified to deal with the top giants, and they can always get some exclusive news.

When the top giants and first-line giants organize any banquet, the second-tier giants are also eligible to participate. Some relatively well-informed second-tier giants can also hear some news through their own channels.

But if it is like a third-tier giant, in the circle of top giants, there is no status at all.

The first-line giants organize a celebration party or other projects, and the third-tier giants are not eligible to be invited at all. Generally speaking, only a very few people who are really crucial, or who do have a relatively close personal relationship with the owner of the wealthy family, will be invited to such an occasion.

But to put it simply, most of the third-tier giants actually don't have such treatment.

The situation of the Gongsun family is special, and its connections are richer than those of many first-line wealthy families. In fact, the Gongsun family is ostensibly only the size of a third-tier wealthy family. But in fact, if you include these connections. If anyone dares to treat the Gongsun family as a third-tier giant, sooner or later they will suffer.

Except for special circumstances such as the Gongsun family, the vast majority of third-tier wealthy families are generally well-informed.

What are the new policies or something, ordinary third-tier giants, when they get the news, they may not necessarily be much faster than ordinary people.

It's not that easy to get ahead of some big changes.

At the beginning, those children of third-tier wealthy families around Qin Zihao who slapped Qin Zihao on the horse could still see Qin Zihao's mood and get some news from Qin Zihao.

But in fact, the vast majority of third-tier giants, many key things are also a situation of being blinded.

Yang Fan has caused a sensation several times in the circle of wealthy families.

Even in the third-tier wealthy families, more than half of the characters know Yang Fan's situation, and they know that there is such a young man surnamed Yang, who is not something anyone can provoke.

However, Yadai Cosmetics, the top leading enterprise in the cosmetics industry, is not a well-informed company among the third-tier giants. Coupled with this time, the entire company's efforts were focused on expanding the foreign market of cosmetics companies. Therefore, in the circle of wealthy families, there are a few things related to Yang Fan that were quite sensational some time ago, and I really don't know very well.

In the final analysis, no matter how weak the Qin family is, it is also a member of the top wealthy circle. If you talk about the gossip of the Qin family, is there really no consequence? If there is, can these second- and third-tier wealthy families afford it?

So this incident caused a lot of shock in the hearts of insiders. But to put it simply, it won't spread on a large scale.