Cosmetics is not the more expensive the better, there is a saying that has some truth: expensive may not necessarily be good, but good will be relatively expensive.

1. Your skincare products, where does the money go?
① Brand. Determine the price of cosmetics, not the price of the product itself, but the brand itself. Therefore, advertising investment to build the brand, skin care products is very important.
Let's look at the L'Oreal Group as an example of how cosmetics companies spend and earn their money.

We can see that:
1, L'Oreal Group's product gross margin is 71.1%. Here, gross margin is calculated as (sales - cost of sales)/sales.

2, the most cost for advertising and promotion costs, amounted to 29.1%, and related channels, administrative and other management costs are also as high as 21.4%. these two items together accounted for 50.5%.

3, R & D expenses is 3.4%, which is already very high R & D investment, and there are not many cosmetic companies can exceed this investment ratio, not to mention the domestic cosmetic companies.

As can be seen, most of the costs are contributed to marketing and channels, which account for half of the price 50.5%.

② The product itself: let's look at the product itself, in fact, this part of the cost is included in the cost of goods sold, and here the cost of goods sold occupies 28.9% . Because the cost of goods sold here includes the raw materials in the product.Cosmetic Packaging, production and manufacturing, logistics and transportation costs. And related to us, only package materials and cosmetic raw materials, remove the production and logistics costs, raw materials this part of the cost in the cost of goods sold accounted for even lower costs.

The products that come into our hands are the ones that really determine the effectiveness of the products used, that is, the cosmetic ingredients. But the sad fact is that the skin care products we get in our hands, in many cases the price of the packaging materials is greater than the price of the contents composed of raw materials!
So, you brainstorm the picture of what percentage of the 28.91 TP3T cost of goods sold is still raw materials.

2、Do different price points lead to differences in ingredients?
The cost of raw materials is a pitifully small percentage of the selling price of a product, and if, in pursuit of gross margins, thecosmetic productsThe control of product costs will be very strict, that is, when the channel costs, promotional costs of these enterprises outside the necessary to spend money can not be changed, the most we can do is to start from the internal, from their own products in order to enhance gross margins. Streamlining costs is a good choice, especially low-end domestic products under the traditional channels, due to the competition is too fierce, the gross margin has been very low, the cost of raw materials and formulations are very sensitive to the cost of raw materials, has not been able to do raw material costs of high products.
But if it's a high-end product with a large profit margin, there will be more money spent on the product itself, but that's more of a thing with those high-end brands abroad. From this point of view, penny wise and pound foolish, is established. But there are times when it does not hold true, even if it is a high-end brand, it does not necessarily mean that the cost of the raw materials used will be very high. Why does it have to be expensive when you can make something with a low-priced recipe? Owners always want to earn a little more. A little more can be said because cosmetic companies usually use one formula for a different brand, by changing the flavor or adding a little bit of the ingredient that is advertised with a one, it can be used for a different brand.

According to the experts.Lanc?me Petite NoirThe core ingredient in both L'Oreal Paris and L'Oreal Paris Black Bottle is "Saccharomyces cerevisiae yeast cytosol". Saccharomyces cerevisiae yeast cytosol is an ingredient that strengthens the metabolism of the skin's stratum corneum and acts as a cellular repair agent. It's the second most abundant ingredient in both lists, which means it's not a bad ingredient.

The more familiar moisturizers, such as sodium hyaluronate and other active ingredients, are found in both products, though arranged one before the other. That is, the dosage is adjusted in order to regulate the feeling of use or to match the effect of other ingredients.

3, the different ingredients will lead to a difference in the effect of skin care products?

Will. It's the difference in ingredients (and technology) that ultimately leads to the difference in the effectiveness of skincare products. Because the technology used by each company is different, and your skin needs different products, you'll have what works best for you across different brands of cosmetics. Just for example, some people say niacinamide is good for whitening, but some people don't feel anything or have irritation with it. Some people use VC for whitening and get great results, but others say they don't have any results to love. So it's the ingredients in the formulation and the technology and processes used in them that are the determining factors in the effectiveness of skincare.

Even if the ingredients appear to be the same, the different dosages of the ingredients will bring some variability to the product. So from the list of ingredients alone, the two can not be completely equal. Experts also said that although the two in the cost of raw materials will not open up too big a gap, but there is no denying that the difference between the two products is bound to exist. Therefore, cosmetics is not the more expensive the better, we use skin care products, we should be good at summarizing the ingredients that suit you, and do not be kidnapped by the brand, for the brand's expensive advertising costs to pay.

1. Skin care products from the same company at different price points may use the same technology and even the same formula. Thus, you can't say that the higher the price point, the more effective the product is, you have to judge by looking at the ingredient list.
2, different companies with different price points of skin care products, usually a little more expensive materials will be a little better, but not, because the big brands with ordinary raw materials to sell high-priced phenomenon is too much.
3, to determine the effectiveness of skin care, not the price of cosmetics, but the efficacy of the ingredients and their used in the formulation of technology, as well as products and your skin, the environment to match the degree.