Mi Guang: A mirror sold for 500 million yuan, a new model of consumer transformation

The new consumption wave rises and falls, and countless new brands have been short-lived and then quietly disappeared. How can new consumption brands grow against the trend? This article deeply analyzes the new consumption brand - Miguang, which focuses on smart makeup mirrors, and explores the way for new consumption brands to break through the circle from its process of transcending single products and expanding product categories. I hope it will be inspiring for you who pay attention to brands and new consumption.

In the past few years of the new consumption wave, capital has played the role of blowing bubbles, using billions of dollars to feed a group of inflated but fragile new brands.

Most of them created a category from a niche field, outsourced production, relied on investment and top live-streaming bloggers for marketing, and expanded their scale with the help of capital. In just three to five years, they have completed the journey that old consumer brands took decades to complete.

Taking the beauty industry as an example, HFP started as a public account and achieved sales of over 1 billion in two years. Perfect Diary’s parent company Yatsen E-Commerce was established in 2016, and it took only five years for its GMV to surpass PROYA, which was established nearly 20 years ago.

When the tide receded, their fragile side was exposed. Perfect Diary faced the crisis of delisting, HFP disappeared from the top ten list of Double Eleven in recent years, and more small and medium-sized brands died on the dry beach.

Looking at the B side of the ebb tide, old brands still have a lot of stamina. In the top 10 of Tmall Double 11 sales in 2021, in addition to foreign brands such as L'Oreal, Estee Lauder and Lancome, there is also the domestic brand Winona, which was founded in 2010. In the top ten of Tmall beauty pre-sale list this year, Winona, PROYA and Quardi are prominently listed.

To be able to survive the trough period, the old brands have obviously made up for their shortcomings in all aspects, with all of their products, channels and marketing capabilities being in place. The new consumer brands either lack product capabilities or channel capabilities, so it is not surprising that they have failed to continue struggling.

So, are there any new consumer brands that can compete?

AMIRO, which started out as a smart makeup mirror, may be a good example. Founded in 2015, after two years of technical research, it launched the first smart makeup mirror in China. It ranked first in the category on Double 11 for three consecutive years , and its sales on the Taobao platform exceeded 500 million.

An innovative category and some outstanding achievements are the first step for most new consumer brands, and also a step that cannot be taken. However, Miguang does not stop there.

In 2020, Miguang launched new products: hair removal device and radio frequency beauty device. As of May 2022, the hair removal device ranked fourth in the industry within half a year of its launch, and the sales of the beauty device exceeded 10 million within two months of its launch, accounting for 20% and 50% of GMV respectively. This means that, in addition to the makeup mirror, the second growth curve has been drawn.

This new consumer brand has expanded its product categories beyond big single products and succeeded . There is something special about it.

How did Mi Guang do it?

Image source: Miguang WeChat public account

1. How to make consumers want you?

From the perspective of a senior consumer, the editor who loves makeup commented:

"Makeup mirror, a category that came out of nothing."

"How can there be a product that is more empty than a makeup mirror? At least beauty devices have effects, but beauty mirrors are really just a mirror!"

An ordinary mirror, assisted by photoelectric technology, allows the mirror surface to emit light comparable to sunlight, reflecting the true skin condition of consumers, allowing them to create a more natural makeup look.

Can't other mirrors be used to put on makeup? Of course, but when consumers experience that all lights are focused on their faces, and they don't need to rely on the bright or dark light sources in the room, but can put on delicate and color-free makeup at a brightness close to daylight, this is not something that ordinary mirrors can provide.

Especially in 2017, when Miguang launched the makeup mirror, it was the time when consumption was upgrading and consumers had a strong demand for cosmetics. According to the "2017 China Beauty and Personal Care Consumption Trend Report", the growth rate of online beauty sales has exceeded 50% for the past four years, much higher than skin care.

In terms of equipment, each consumer has three or four lipsticks, and liquid foundation, eye shadow, blush, highlighter, and loose powder are all available, but the makeup mirror is still an ordinary mirror.

There is a pain point here: there is a difference between indoor lighting and daylight. Consumers put on a (self-perceived) perfect makeup at home, but when they go outside, their blush looks like a flower.

Wang Nian'ou, the founder of Miguang, saw this in early user research, but there were no such products on the market at the time, so he formed a team and spent two years developing the first makeup mirror.

Before this luminous makeup mirror appeared, think about what kind of scenes we have seen it in?

——In the makeup rooms of stars in movies and TV dramas, the mirrors are surrounded by light bulbs to even out the light, which is a high-end makeup equipment.

The makeup mirror allows ordinary girls to have this experience, so Miguang emphasizes the consumer's perception of "shining with strength" and begins brand communication.

1. Cold start of Xiaohongshu

Before the product was launched, Miguang teamed up with 100 Xiaohongshu bloggers to conduct an internal testing activity. The beauty bloggers successively released their experience notes on the makeup mirrors to jointly expand their voice.

This is also an event to popularize makeup knowledge. Consumers can see from various notes that makeup mirrors can not only simulate daylight, but also provide cold light for offices and warm light for party scenes, so as to create different makeup looks.

If you search for "amiro" on Xiaohongshu now, you will find more than 10,000 notes , while another makeup mirror brand, muid, has only more than 1,500 notes.

With the popularity and recognition laid, soon after Miguang launched its Tmall flagship store in 2017, its sales of makeup mirrors exceeded 5.8 million on Double 11, making it into the top 20 of Tmall's beauty instrument industry Double 11 sales list.

2. High potential energy transmission

For a new category to complete market education, it is far from enough to rely solely on circle dissemination. Therefore, Miguang has adopted various high-potential communication methods.

In terms of celebrity collaboration, Mi Guang once collaborated with Ouyang Nana to launch the "Nabi Pink" makeup mirror on the latter's 18th birthday ceremony; officially announced Gao Yuanyuan as its spokesperson; and implanted itself into the makeup scene of the S-level variety show "Sisters Riding the Wind and Waves".

In live broadcast promotion, top bloggers Li Jiaqi, Wei Ya, Liu Tao and Luo Yonghao have all promoted Miguang makeup mirrors. But the real reason for going viral was indirect promotion. On November 11, 2018, Li Jiaqi and Jack Ma sold lipsticks on live broadcasts. Although their promotion levels were different, the mirrors they used were all Miguang, which brought significant results. Miguang's sales on that day exceeded 10 million.

3. Deepen consumer awareness

For consumers, function is the most basic part of a product. Whether it is clear brightness or scene light simulation, there are similar products on the market. Why must we find light?

Celebrity endorsements can make consumers follow suit and achieve short-term high sales, but that is short-lived. Even national star Zhou Xun cannot promote Perfect Diary. So why must Mi Guang be the only choice when it comes to mirrors?

Maybe the answer has already been written on the mirror.

Looking through the sharing content on platforms such as Xiaohongshu, Video Account and Douyin, the phrase " Are you ready to shine? " appears frequently. It turns out that it is the words printed on the mirrored plastic film, and it is also a dialogue between the brand and the user.

Image source: Xiaohongshu blogger

The first meaning is: Are you ready to use the luminous makeup mirror? It emphasizes the product function, and the second meaning is: Are you ready to let yourself shine? By using our mirror, you can create a more natural and delicate makeup and become a better you.

Everyone is most concerned about themselves. In fact, every user who buys the Miguang makeup mirror will subconsciously interpret it as the second meaning. Then, from the perspective of consumer value, the top level of Maslow's needs - self-realization - comes out.

In addition, users’ sharing on various platforms, whether it is unboxing or recommendation, is reinforcing this perception to potential users: Miguang makeup mirror = make yourself glow, this is not an ordinary mirror, using it can make you more beautiful!

With an open mind and increased value, the premium of the Miguang makeup mirror is justified, with prices ranging from 200 to 700 yuan.

Looking at the content posted by Mi Guang on Weibo and official accounts, the word "glowing" is frequently mentioned, which is obviously not an unintentional work.

Image source: Miguang Weibo + Official Account

The cleverness of Mi Guang lies in that, in brand communication, it does not focus on saying how good our products are, but rather emphasizes that it can help consumers achieve self-realization and deepen consumer cognition.

Once a perception is established, it is difficult to remove.

This is also where consumers distinguish Miguang from other brands of makeup mirrors. The editor has personally experienced this. She has known Miguang for many years and has bought inferior substitutes, but she still can't forget it. She finally bought the original one on Double Eleven this year.

2. How to sell different products to the same group of people?

Relying on its first-mover advantage and deepening consumer awareness, Miguang has become the leader in the makeup mirror category, with its sales volume accounting for 57% of the makeup mirror category on Tmall on Double Eleven in 2020.

However, makeup mirror is a small category after all. The official retail price of the Miguang O series is 799 yuan, which is already the ceiling in the makeup mirror market and exceeds the psychological expectations of some consumers.

According to CBNData's consumer big data, 7 million people have purchased LED makeup mirrors on Tmall, which accounts for less than a quarter of the 300 million Tmall beauty consumers. Beauty consumers have more or less heard of high-end makeup mirrors, but they are deterred by the high prices. This market was blank 7 years ago and is still in its early stages.

However, the beauty market is a long and arduous one, so why bother to stick to a small market? Miguang understands this, so it switched to the home beauty device market, which has a compound growth rate of up to 30%. In 2020, it launched a hair removal device and a radio frequency beauty device, which immediately raised the customer unit price to 2,000 yuan, while also increasing the LTV of the target customer base.

The product categories have increased, but the users are still the same group of people.

The makeup mirrors priced between 200 and 800 yuan are aimed at two customer groups: Generation Z aged 18-24 and the elderly aged 25 and above, while the Miguang beauty instrument is positioned at the elderly aged 30 and below. In other words, the customer groups of the two products have a high degree of overlap. Miguang's transformation includes the consideration of " selling different products to the same group of people ."

In this regard, founder Wang Nian'ou believes: "The mirror is a window to discover problems ." A mirror that is clear enough to be almost as clear as daylight allows users to see flaws on their faces. Therefore, solving problems becomes the direction of product category expansion. Beauty devices can meet the needs of facial beautification, while hair removal devices correspond to body care needs.

So far, Miguang has a total of 3 SKUs: makeup mirror, beauty instrument and hair removal instrument. If the early makeup mirror was only about managing products, the current product matrix is ​​already about managing users - finding target users, meeting their multiple needs, and thus increasing user lifetime value.

So, where does the confidence to expand product categories come from?

1. Expansion of underlying technology

From makeup mirrors to beauty devices and hair removal devices, it is not a waste of time, but a technological expansion. Mi Guang is expanding optoelectronic technology to the fields of hair care and skin care.

Beauty devices and hair removal devices have higher technical requirements, so Miguang established its first optoelectronics laboratory in 2018, expanding the exploration of innovative applications of optoelectronic principles to the fields of hair care and skin care. The partners are also from the core team of the optical biology related field of MIT Media Lab.

The product expansion on the surface is actually the upgrading of the enterprise's core technology.

There are many similar examples. Dyson's underlying technology is wind motors, so it can extend its products from vacuum cleaners to hair dryers; Anker Innovations, a well-known overseas brand, has been researching sensor technology, so in addition to charging products, it can also develop the headphone and speaker brand Soundcore and the smart home brand eufy.

When a company possesses core technology, it has the confidence to resist risks because it can continue to evolve.

2. Create high cost-effectiveness

Unlike the blue ocean where makeup mirrors are located, the beauty instrument market is a red ocean.

Foreign brands basically dominate the market. Foreign brands such as Ya-Man, Clarisonic, Refa, TriPollar, etc. occupy about 80% of the domestic market share. Most of them target women over 35 years old with clear anti-aging needs, and their product prices are all above 4,000 yuan.

Miguang chose to avoid this market. When it launched its first radio frequency beauty device, it promoted the product as "the first beauty device for Generation Z" and priced the product at around 2,000 yuan.

Beauty tools require high technical skills, but the price is half as low. Is this possible?

When I saw that MiGuang was originally part of Xiaomi's ecological chain, I had no doubts at all. "High cost performance" is engraved in the latter's genes. When optoelectronic technology is combined with Xiaomi's mature supply chain , both products seem to be unethical:

Compared with ordinary beauty devices, the MiGuang radio frequency beauty device uses a six-pole dot matrix radio frequency head. It only takes 5 minutes to tighten and lift, and only 10 minutes to lighten and repair lines, making it easy for novice users to get started.

The hair removal device has developed a patented Lunminous red light wave energy system that can achieve rapid hair removal without damaging the skin. Most household hair removal devices require three to four months, but Miguang can shorten the hair removal time to three weeks.

To sum up, the two transformation products are easier to operate, more effective, and cheaper than similar products on the market. They are like a dark horse entering the red ocean. The red light wave hair removal device jumped to the fourth place in the industry only half a year after its launch, and the sales of the radio frequency beauty device exceeded 10 million in just 2 months after its launch.

3. Is live streaming also divided into public and private domains?

In the live streaming era, the figures that easily exceed 100 million have made many brands jealous, and they all want to join in to make money, and Miguang is no exception.

Compared with text and picture formats (official accounts and Xiaohongshu), beauty devices and hair removal devices are more suitable for display in videos, which can allow consumers to see the product usage and effects more intuitively.

In addition to Taobao Live, Miguang has also entered Douyin and Kuaishou, and the operating methods of these two platforms also point to the distinction between the public and private domains of live streaming.

(1) Tik Tok’s self-broadcasting by category

According to data from Chanmama, a short video e-commerce data analysis platform, Miguang's sales from June to September 2022 reached nearly 500 million yuan. In the TOP10 best-selling list officially released by Douyin e-commerce, AMIRO beauty device ranked first. The reason for this is that in addition to the support of Douyin's 818 Discover Good Things Festival and top bloggers, Miguang's self-broadcasting strategy is also worth learning.

Miguang has divided at least 4-5 accounts for simultaneous self-broadcasting based on its three major product lines: makeup mirrors, hair removal devices, and beauty devices. It has conducted as many as 233 live broadcasts within 180 days, maintaining a high-frequency and uninterrupted rhythm of self-broadcasting , thus achieving sales of 75 million to 100 million.

Image source: Miguang Douyin live broadcast room: multiple live broadcasts in the same time period

In just a few months, Mi Guang achieved sales of 500 million on the Douyin platform, and the sales of makeup mirrors that had been operating on the Taobao platform for several years were also 500 million. Mi Guang thus saw the value of Douyin e-commerce and currently treats the Douyin store as a small e-commerce platform. There are dedicated people responsible for the store's operation and promotion, content production and anchors.

(2) Kuaishou: 140 million in 40 minutes

Compared with Douyin's top live broadcasts and self-broadcasts by category, Miguang's operations on Kuaishou seem to be unconventional.

In a 40-minute live broadcast, the company only promoted one single product, a beauty device, but it sold 140 million yuan. Even Li Jiaqi has never tried this.

Kuaishou has a distinct “old iron” attribute, showing a different temperament from other platforms. Here, selling goods depends on shouting, and the anchor is more important than the price and brand of the product. So, how did beauty devices, a high-priced product that pays attention to brand, become successful?

The 140 million yuan was prepared . One month before the live broadcast, Kuaishou anchor Zhao Mengche specially planned a 100-person evaluation team to directly invite different groups of people to experience the product on the street, including college students, sanitation workers, mothers, etc., trying to cover consumers of different ages and identities. He also carefully produced 10 pre-production videos to introduce the Miguang brand, the functions and uses of beauty devices, and fully convey the highlights of the product.

Zhao Mengche has 32.46 million fans on the Kuaishou platform. One month's content output is enough to screen out users with clear needs, forming potential energy during the actual live broadcast, thereby obtaining high transaction volume. Moreover, the fan transaction share is as high as 97.76% among the 60,000 orders, which also confirms the high fan stickiness.

Image source: Kuaishou @赵梦澈

Although both are live broadcasts, they are two different ways of selling products. The fundamental reason is that the two platforms operate differently.

Tik Tok adopts an algorithm recommendation mechanism. Users will only watch videos according to recommendations. No matter how many views a video has or how much attention it brings to the blogger, the next video still has to re-enter the traffic pool and wait for the unknown algorithm to match it before it can gain popularity. If we follow the popular videos and click on the blogger’s homepage, we will see that the views of other videos that have not been recommended are pitifully low.

Under this mechanism, Douyin has obvious public domain attributes . As the saying goes, "your users are not your users, they belong to the platform." Therefore, when live streaming on Douyin, increasing exposure is the most important thing. This is also the reason why Mi Guang insists on high-frequency and multi-category self-broadcasting on Douyin.

Kuaishou’s distribution mechanism is algorithm + recommendation. Good content has a chance to be on the homepage, but as long as users follow the blogger, they can also see every update of the blogger on the homepage. This leaves room for bloggers to connect with fans and cultivate trust.

Therefore, the community atmosphere of Kuaishou platform is good, the private domain attributes are more obvious , fans have extremely high trust in bloggers and are willing to follow the bloggers' words and deeds. Correspondingly, the conversion rate in the live broadcast scene is also extremely high. Simba's call is responded to by thousands of people, and can be found everywhere.

For Kuaishou bloggers, my fans are really my fans, so every update of Zhao Mengche can be seen by fans, which strengthens the connection with fans. As a result, fans' recognition of Miguang products has increased, and it is not surprising that 97.76% of the 60,000 orders completed were from fans .

IV. Conclusion

As the new consumption trend recedes, every player who is still doing well has something to commend them.

First of all, a blockbuster product is essential. Since its launch in 2017, the Miguang makeup mirror has ranked first in its category for three consecutive years on Double Eleven, and it is not just based on marketing.

Miguang’s operation on makeup mirrors may give other brands an inspiration: for a new category, especially a category that is not completely necessary for consumers, it is more clever to create differentiated cognition . The phrase "Are you ready to shine?" is repeatedly emphasized, allowing consumers to bind self-realization with the brand, have a deep understanding of it, and make them want to buy it.

Secondly, every brand has its own self-transcendence problem, especially after capital stops pouring in money, you can’t just expand your product line whenever you want. Miguang’s optoelectronic technology is an important support point. When a brand has the underlying technology and studies it deeply enough, it has the possibility of turning a natural barrier into a thoroughfare.

Managing users is another key. A big single product is just a point. Finding the multiple needs of target users and expanding product categories is equivalent to connecting points into lines and then into surfaces. While increasing LTV, it also enhances the brand's overall risk resistance.

Finally, in an era where everyone is chasing live broadcasts, it is common sense not to rely too heavily on top bloggers, but it is little-known knowledge to understand the attributes of different platforms and conduct differentiated operations. For platforms with obvious public domain attributes, high frequency of presence is the key; for platforms with obvious private domain attributes, it is smarter to find the right anchor and operate slowly, and brands should also act according to the attributes.

Author: Winter; WeChat public account: Private Domain Traffic Observation (ID: wangongdigital)