Cosmetics E-commerce Expert Jumei

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Jumei is claimed to be the biggest online mall for “real brand” cosmetics with time-limit discount. As introduced by its boss, Chen Ou, the daily turnover of Jumei has exceeded 20 million RMB after its establishment 2 years ago.
Looking back to the development of Jumei, we will see the three pillars supporting its success.

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jumei

logo of jumei

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1. Positioning

Two years ago, when cosmetics market, one of the most profitable business in China, starts to prosper at a crazy speed. Chen Ou shifts his focus on the online sales in this market. In fact, he is simply one of the hundreds of people who have discovered and take action to develop in this market.
Unlike his competitors, Jumei choose reliable supply of goods as its core value instead of the best price or most choices.
Now when we look back, we will see how smart the decision is:

  • the demand of Chinese girls for cosmetics is soaring in the past few years ;
  • they like and are able to pay for foreign cosmetics brands;
  • they want to pay less online than in the shopping mall;
  • there’s no competitor takes quality as its positioning in the market but price or coverage.

With its unique positioning, Jumei just defeat all his major competitors in the following two years. And those facts haven’t changed a lot, even after two years.

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2. User experience

Only picking a good positioning is still miles away from success. To maximize the advantage of its positioning, Jumei improves user experience mainly in two ways: website and service.

Website:

After editions for several times, the homepage of Jumei now is very optimized for user experience.

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jumei homepage

jumei homepage

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On the homepage of their website, visitors can find link to SNS on top and products under promotion now easily.

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product description of Jumei

product description of Jumei

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The introduction of products on Jumei is also very clear. You can find the two most important things for Chinese cosmetics consumers: discount and brand.

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ju mei sold out

Product sold out

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At the bottom of the page, you will also see the products already sold out on Jumei today. As a result, consumers will have a feeling of a regret and come make decision faster next time.

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brand discount page of Jumei

brand discount page of Jumei

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One of the five major pages is the brand discount page of Jumei. On this page, you can see all the information about the discount and brand name easily, but there’s no introduction of the products. For those buyers, what’s important is not the description, but only the information about the discount matters.

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jumei iwom zone

IWOM zone

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Jumei has also created a special zone for its users to comment and share their experience with the product they use.  Chinese girls tend to believe what other girls say about a product and really LOVE taking pictures of themselvese and upload them online. As a result the IWOM zone gets very high interactivity.

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Service:

To distinguish itself from its competitors, Jumei claims to offer its customers:

Reliable supply

Jumei only inputs 20% the best sellers in cosmetics products and their origin are guaranteed by suppliers or directly from the brand. After two years rocking growth, Jumei now turns to direct cooperation with big brands like L’Oreal and NIVEA.
L’Oreal Paris launched its official online store on Jumei after their first store on Tmall (Taobao mall) on July 4 last year. And on the first day the store opened, L’Oreal got a turnover above 15 million RMB within 24 hours, as introduced by Chen Ou.
L’Oreal’s victory also stimulates other brands such as Olay, Estee Launder, NIVEA, Lancôme, etc.

Reassuring after-service

To increase customers’ trust, Jumei offers a 300% warranty and 30 days unconditional return, and the terms are valid even after unsealing. It means even a buyer wants to take return for an unreasonable reason; she can still get payment return. It is worth mentioning that Jumei is the first one takes this regulation in E-commerce of China cosmetics.
Jumei’s effort for a better user experience has not been wasted, but well paid off. In the end of 2012, the monthly turnover of Jumei has reached 120 million RMB, top on the list of all B2C online stores.

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3. E-reputation

Many brands are facing the problems of IWOM (internet word of mouth). Bad comments or news from users, competitors and journalists are the nightmare for everybody, especially cosmetics brands whose sales depend greatly on the reputation. However, to create a decent brand image means the budget and time. From the case of Jumei, we can get some inspirations.
Instead of paying a famous star, Jumei takes their boss as the brand ambassador. In this way, they have saved millions of advertising fees.

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As you can see in the video, Chen Ou, the boss of Jumei is branded as a decisive young man who is not afraid of failures and scorn. I agree it’s not the spirit a cosmetics brand needs, but it is something can gain trust from young Chinese born after 1980s and the ad is just what they like because they have strong personality and want to be unique. And they happen to be the main purchasing power for cosmetics. And reliability is what Jumei really wants.
In fact, their video gets likes from girls:
大爱陈欧 ! 喜欢广告词 ,很励志~
I love Chen Ou! I love the slogan; it’s so encouraging~
大爱陈欧,广告太帅了+震撼。我是陈欧,我为自己代言
I love Chen Ou! The ad is awesome + moving: “I’m Chen Ou, I represent myself ”
Jumei seems to have put a lot of effort in managing its community.
On Baidu, they have a very active forum for their boss, Chen Ou;

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forum of Chen Ou on Baidu

forum of Chen Ou on Baidu

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On Weibo, their company account has got 834707 fans and ready to answer questions from their fans.

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jumei weibo

Jumei weibo account

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Besides, they seem to have good relationship with press. Every week, you can find fresh news about Jumei on big websites like Sina, Tencent and Sohu.

If you have any more ideas or any questions about this article or your business plan, don’t hesitate to leave a comment or send email to me: oq.philip(at)gmail.com

 

source: Chen Ou, Jumei