Market research is a specific activity that links consumers and the public sector to the market, which is used to identify and define marketing opportunities and problems, generate, improve and evaluate marketing activities, monitor marketing performance, and improve understanding of the marketing process. Market research is actually a process of seeking "harmony" between the market and the enterprise, which can help enterprises understand the needs, characteristics, changes and trends of the market, formulate reasonable strategies and strategies, and improve competitiveness and profitability.

Shangpu Consulting is a well-known independent third-party research and investment and financing consulting agency in China, dedicated to providing professional solutions for corporate strategic decision-making. As a foreign-related investigation and licensing unit of the the People's Republic of China National Bureau of Statistics, Shangpu Consulting not only serves Chinese domestic enterprises, but also helps foreign enterprises achieve greater success in the Chinese market. Shangpu Consulting has accumulated rich professional experience and customer resources in the fields of industry research, market research, investment and financing consulting, and IPO listing consulting. With strong consulting innovation capabilities, first-class service quality, and strong market competitiveness, it has been well received by the society. Highly recognized by all walks of life, it has now become one of the most leading and authoritative independent third-party research and investment and financing consulting institutions in China.

In order to ensure the quality and effectiveness of market research, Shangpu Consulting follows the following six principles when conducting market research:

The principle of objectivity

Market research must seek truth from facts, respect the objective facts, to avoid the interference of subjective assumptions and prejudice. The purpose of market research is to understand the real situation of the market, not to prove their point of view or meet the expectations of customers. In the process of market research, we should maintain a neutral attitude, not affected by our own or others' interests, emotions, preferences and other factors, and objectively collect, analyze and present data and information without any subjective modification or explanation.

2. The principle of accuracy

Market research must obtain true and accurate information in order to effectively provide information services for management decision-making. Market research must truly and accurately describe the quantitative performance and attribute characteristics of objective phenomena, and the investigation error should be as small as possible. The main unit, time and place involved in the survey data should be accurate. The measurement scope and unit of data should be scientific. The description of the survey results must be clear and accurate, not vague or ambiguous.

3. The principle of timeliness

In the modern market, time is opportunity, which means money. The timeliness of market research is manifested in the timely capture and grasp of any useful intelligence and information in the market, timely analysis and timely feedback, so as to create conditions for enterprises to formulate and adjust strategies in a timely manner in the course of operation. The data and information of market research must reflect the latest changes in the market and cannot be outdated or lagging behind, otherwise it will lose its guiding significance. Market research reports and recommendations should also be submitted to customers in a timely manner so that customers can make decisions and respond in a timely manner.

4. The principle of comprehensiveness

Market research should be a comprehensive collection of information on the production and operation of enterprises. Because under the conditions of large-scale social production, the production and business activities of enterprises are restricted and influenced by both internal and external factors, these factors can play a positive role together, but also hinder the normal development of enterprises. Since the changes between many factors are mutually causal, if you simply understand a certain thing without investigating how and why it plays such a role in the enterprise, you cannot grasp the essence of this thing, and it is difficult to make a correct analysis of the key factors that affect the operation.Conclusion. In this sense, market research should not only understand the actual production and operation of the enterprise, but also understand the relevant situation of competitors; it should not only recognize the impact of its internal organization, staffing, management quality and methods on the operation, but also investigate the degree of influence of various aspects of the social environment on enterprises and consumers.

5. Economic principles

Market research is an activity that consumes time, manpower, material resources and financial resources. When carrying out market research activities, the cost-benefit analysis of the investigation project should be carried out according to the requirements of the investigation purpose, that is, under the condition that the investigation content is unchanged, the cost of different investigation methods and methods should be compared, and the investigation methods and methods that meet the investigation purpose and requirements with less investigation cost should be selected, strive to obtain more survey information at a lower cost. The economic principle of market research requires that under the premise of ensuring the quality of the survey, the cost of the survey should be reduced as much as possible, the efficiency of the survey should be improved, and the maximum benefit of the survey should be realized.

6. Scientific Principles

Market research is not simply an activity of collecting intelligence and information. In order to obtain more and more accurate information and information under the condition of limited time and funds, the investigation process must be scientifically arranged. The scientific principle of market research requires the use of scientific methods and techniques in all aspects of the survey, such as sampling surveys, statistical analysis, mathematical modeling, etc., to improve the reliability and effectiveness of the survey.

The six principles of market research are the basic guidelines to guide market research, but to achieve these principles, we need to follow certain standards, that is, the four stages of market research, namely:

1. Preparation phase

The preparation stage of market research is the starting point of market research and the basis of market research. At this stage, the following tasks should be completed:

Clear research purpose and objectives. The purpose of the survey refers to the motivation and significance of the survey, and the goal of the survey refers to the specific content and scope of the survey. Clarifying the purpose and objectives of the research is conducive to determining the key points and difficulties of the research and avoiding aimlessness and blindness.

Develop research programs. The research plan refers to the specific plan and arrangement of the research, including the subject, object, method, tool, time, personnel, cost, quality control, etc. The formulation of the research plan is conducive to ensuring the systematicness and standardization of the research and improving the efficiency and effect of the research.

Design research tools. Research tools refer to the specific means and carriers of research, including research questionnaires, research guides, research forms and so on. Designing research tools is conducive to ensuring the accuracy and operability of research and improving the quality and level of research.

2. The Gathering Phase

The collection stage of market research is the core of market research and the key to market research. At this stage, the following tasks should be completed:

Identify research objects and samples. The research object refers to the subject of the research, that is, the person or organization that provides the research information, such as consumers, competitors, suppliers, government departments, etc. A sample is a representative group of individuals or units drawn from the survey, such as consumer groups, competitor companies, supplier companies, etc. Determining the research objects and samples is conducive to ensuring the representativeness and universality of the research, and improving the credibility and applicability of the research.

Select research methods and channels. Research methods refer to the specific methods and forms of research, including one-time research and continuous research, quantitative research and qualitative research, active research and passive research. Research channels refer to the specific ways and media of research, including face-to-face research, telephone research, network research, email research, etc. Choosing research methods and channels is conducive to ensuring the diversity and flexibility of research, and improving the coverage and response rate of research.

Collect research data and information. Research data refers to the specific results and output of research, including numbers, text, charts, etc. Research information refers to the specific content and input of research, including market demand, market characteristics, market changes, market trends and so on. Collecting research data and information is conducive to ensuring the integrity and practicality of the research and improving the value and significance of the research.

3. Research Phase

The research phase of market research is an extension of market research and a deepening of market research. At this stage, the following tasks should be completed:

Collate research data and information. Collating research data and information refers to the classification, coding, entry, storage, cleaning and other operations of the collected research data and information for subsequent analysis and processing. Collating research data and information is conducive to ensuring the orderliness and readability of the research and improving the usability and comparability of the research.

Analyze research data and information. Analysis of research data and information refers to the use of statistics, mathematics, economics and other methods and techniques to describe, summarize, infer and predict the compiled research data and information in order to reveal the inherent laws and relationships of research data and information. The analysis of research data and information is conducive to ensuring the scientific and logical nature of the research and improving the reliability and effectiveness of the research.

Interpret research data and information. Interpretation of research data and information refers to the use of marketing theory, market economy principles, market competition strategy and other knowledge and experience, the analysis of good research data and information to interpret, evaluate, compare, judge and other operations, in order to explain the meaning and value of research data and information. The interpretation of research data and information is conducive to ensuring the professionalism and practicality of the research, and improving the guidance and reference of the research.

4. Summary stage

The summary stage of market research is the end of market research and the result of market research. At this stage, the following tasks should be completed:

Write research reports. A research report is a document that systematically, completely and normatively expresses the process and results of the research in writing, and is the main result and carrier of market research. Writing research reports is conducive to ensuring the visibility and transmissibility of research and improving the impact and recognition of research.

Propose research recommendations. Research proposal refers to the professional, reasonable and feasible opinions and plans put forward on the customer's market problems and market decisions according to the purpose and objectives of the research, as well as the data and information of the research, which is the main purpose and value of the market research. Proposed research recommendations are conducive to ensuring the practicality and pertinence of the research, and improving the service and satisfaction of the research.

Feedback research results. Feedback research effect refers to the evaluation and monitoring of the quality and effect of research, as well as communication and exchange with customers, and collection of customer opinions and feedback, which is the main way and means of market research. Feedback on the results of the research is conducive to ensuring the continuity and improvement of the research, and improving the credibility and loyalty of the research.

These are the six principles of market research and the introduction of the four stages, below we will combine the actual case of Shangpu consulting, to show the application and value of market research.

Case 1: Shangpu Consulting provides China market research services for an international cosmetics brand.

An international cosmetics brand is one of the world's leading beauty and skin care brands, with multiple sub-brands and product lines, covering different consumer groups and market segments. The brand has a high reputation and market share in developed markets such as Europe and the United States, but it is facing fierce competition and challenges in the Chinese market, especially in the middle and high-end market, and the competition with other international brands and local brands is becoming increasingly fierce. The brand hopes to better understand the needs and characteristics of the Chinese market, formulate more appropriate market strategies, and enhance brand influence and sales performance.

The brand entrusts Shangpu Consulting to provide it with Chinese market research services. According to the needs and goals of customers, Shangpu Consulting provides customers with the following services in accordance with the six principles and four stages of market research:

In the preparation stage, Shangpu Consulting clarified the purpose and goal of the research, that is, to understand the scale, structure, trend, competitive pattern, consumer behavior and preferences of the Chinese cosmetics market, and to provide customers with a comprehensive analysis and evaluation of the Chinese market, as well as market positioning and promotion suggestions for different sub-brands and product lines. Shangpu Consulting has formulated a research plan and determined the subject, object, method, tool, time, personnel, cost, quality control, etc. of the research. Champu Consulting has designed research tools, including research questionnaires, research guides, research forms, etc., to adapt to different research methods and channels.

In the collection stage, Shangpu Consulting determined the research objects and samples, including experts, enterprises, distributors, retailers, consumers, etc. in the cosmetics industry, as well as the division of different regions, age, gender, income, education and other dimensions. Shangpu Consulting has chosen research methods and channels, including one-time research and continuous research, quantitative research and qualitative research, active research and passive research, as well as face-to-face research, telephone research, online research, email research, etc., to ensure the diversity and flexibility of research. Shangpu Consulting collected research data and information, including market demand, market characteristics, market changes, market trends, etc., as well as customer brand awareness, reputation, loyalty, satisfaction, etc., to ensure the integrity and practicality of the research.

In the research stage, Shangpu Consulting collated the research data and information, and carried out classification, coding, entry, storage, cleaning and other operations to facilitate subsequent analysis and processing. Shangpu Consulting analyzed the research data and information, and used statistics, mathematics, economics and other methods and techniques to describe, summarize, infer, predict and other operations to reveal the inherent laws and relationships of research data and information. Shangpu Consulting explained the research data and information, used the knowledge and experience of marketing theory, market economy principles, market competition strategy, etc., to interpret, evaluate, compare, judge and other operations to explain the meaning and value of the research data and information.

In the summary stage, Shangpu Consulting wrote a research report, which systematically, completely and standardized written expression of the research process and results, including market overview, market analysis, market evaluation, market recommendations, etc., as well as related Data, charts, attachments, etc. Shangpu Consulting puts forward research suggestions. According to the customer's needs and objectives, as well as the research data and information, it puts forward professional, reasonable and feasible opinions and plans on the customer's market problems and market decisions, including market positioning, market segmentation, market objectives, market strategy, market combination, market control, etc. Shangpu consulting gave feedback on the research results, evaluated and monitored the quality and effect of the research, communicated and exchanged with customers, and collected customers' opinions and feedback to ensure the continuity and improvement of the research.

The Chinese market research service provided by Shangpu Consulting for the brand has been highly recognized and satisfied by customers. Customers said that the research reports and suggestions of Shangpu Consulting are very professional and valuable, which provides good guidance and support for its development in the Chinese market, and also enhances its confidence and determination in the Chinese market.

Case 2: Shangpu Consulting provides user behavior research services for a domestic e-commerce platform.

A domestic e-commerce platform is one of the largest comprehensive e-commerce platforms in China, with hundreds of millions of registered users and tens of millions of online products, covering various industries and fields, and providing rich shopping experience and services. The platform occupies a high share and position in the Chinese e-commerce market, but it is also facing the challenge of diversification and personalization of user needs, as well as the complexity and change of user behavior, especially on the mobile side, the user's usage habits And preferences are very different from the traditional end. The platform hopes to better understand the behavior and psychology of users, optimize user experience and satisfaction, and enhance user loyalty and activity.

The platform entrusts Shangpu Consulting to provide it with user behavior research services. According to the needs and goals of customers, Shangpu Consulting provides customers with the following services in accordance with the six principles and four stages of market research:

In the preparation stage, Shangpu Consulting clarified the purpose and goal of the research, that is, to understand the user's shopping behavior, shopping motivation, shopping preferences, shopping satisfaction, etc., to provide customers with a comprehensive portrait and analysis of users, as well as product optimization and marketing recommendations for different user groups and scenarios. Shangpu Consulting has formulated a research plan to determine the continuous expansion of the number and scale of consumers, especially the increasing proportion of young consumers and male consumers. According to the survey data of Shangpu consulting, the total number of cosmetics consumers in China reached 0.45 billion in 2023, of which 40% were young consumers under the age of 25 and 15% were male consumers. It is estimated that by 2025, the total number of cosmetics consumers in China will reach 0.55 billion, of which 45% will be young consumers under the age of 25, and 20% will be male consumers. These consumers have higher consumption power and willingness to consume, and their demand and preference for cosmetics are more diversified and personalized. They are the main driving force and potential customers of the cosmetics market.

Consumers' consumption level and consumption frequency are increasing, especially the consumption of high-end cosmetics and new cosmetics is growing rapidly. According to the survey data of Shangpu Consulting, the per capita consumption of Chinese cosmetics consumers reached 1100 yuan in 2023, an increase of 10% over the same period last year, of which the per capita consumption of high-end cosmetics reached 2000 yuan, an increase of 20% over the same period last year. The per capita consumption of new cosmetics reached 500 yuan, an increase of 30% over the same period last year. It is estimated that by 2025, the per capita consumption of Chinese cosmetics consumers will reach RMB 1500, an increase of 15% year-on-year. Among them, the per capita consumption of high-end cosmetics will reach RMB 3000, an increase of 25% year-on-year, and the per capita consumption of new cosmetics It will reach RMB 800, an increase of 35% year-on-year. These consumers have higher quality requirements and innovation consciousness, and have higher requirements for the function, safety, environmental protection and personality of cosmetics, which are the main growth point and innovation source of cosmetics market.

Consumers' consumption channels and consumption patterns continue to enrich and change, especially the proportion of consumption in emerging channels such as e-commerce, social media, live broadcast, and short video continues to increase. According to the survey data of Shangpu Consulting, the proportion of consumption channels of Chinese cosmetics consumers in 2023 is: 25% of counters, 15% of supermarkets, 10% of pharmacies, 10% of beauty salons, 25% of e-commerce, 10% of social media, 3% of live broadcasts and 2% of short videos. It is estimated that by 2025, the proportion of consumption channels for Chinese cosmetics consumers will be: counters 20%, supermarkets 10%, pharmacies 8%, beauty salons 7%, e-commerce 30%, social media 15%, live broadcast 5%, and short video 5%. These consumers have higher information sensitivity and interactive participation, and have higher requirements for the evaluation, recommend, sharing, and experience of cosmetics. They are the main disseminators and influencers of the cosmetics market.

The competitiveness and potential of the brand in the Chinese market need to be improved, and targeted strategies and strategies need to be formulated to adapt to the characteristics and trends of the Chinese market. According to the research data of Shangpu Consulting, the performance of the brand in the Chinese market is as follows:

Market share: The brand's market share in the Chinese market is 3%, ranking eighth among international cosmetics brands, far below the market leader's 15%. The brand's market share in different categories and regions is also quite different. Among them, the market share in skin care products and perfume is higher, at 5% and 4% respectively, while the market share in cosmetics and hair care is lower, at 2% and 1% respectively. The market share in first-tier cities and eastern regions is higher, at 4% and 3.5 respectively, the market share in the second-tier cities and the central and western regions is lower, at 2% and 1.5 respectively.

Brand awareness: The brand's brand awareness in the Chinese market is 60%, ranking tenth among international cosmetics brands, far below the 90% of the market leader. The brand's brand awareness in different groups and channels is also quite different. Among them, the brand awareness in female consumers and counter channels is higher, 70% and 80% respectively, while the brand awareness in male consumers and e-commerce channels is lower, 50% and 40% respectively.

Brand image: The brand's brand image in the Chinese market is high-end, elegant, and classic, which is consistent with its European brand positioning, but does not fully match the needs and preferences of Chinese consumers. The brand image of the brand in different dimensions and attributes is also quite different. Among them, the brand image in terms of quality, safety and function is higher, with 8 points, 7.5 points and 7 points (out of 10 points), while the brand image in innovation, environmental protection and personality is lower, with 5 points, 4.5 points and 4 points (out of 10 points).

Brand loyalty: The brand's brand loyalty in the Chinese market is 40%, ranking 12th among international cosmetics brands, far below the market leader's 70%. The brand's brand loyalty in different factors and motives also has a big difference. Among them, the brand loyalty in brand identity, brand satisfaction and brand trust is higher, which is 50%, 45% and 40% respectively, while the brand loyalty in brand switching, brand recommend and brand sharing is lower, which is 30%, 25% and 20% respectively.

Based on the above findings, Champ Consulting made the following recommendations for the brand:

Recommendation 1: Strengthen brand differentiation and innovation to enhance brand competitiveness and attractiveness. The brand should adjust and optimize its brand positioning, image, and communication according to the characteristics and trends of the Chinese market, as well as the needs and preferences of Chinese consumers, highlight the core advantages and unique values of the brand, and increase brand differentiation and Innovation to enhance the competitiveness and attractiveness of the brand. Specific measures include:

In terms of brand image, the brand should change from a single high-end, elegant, and classic image to a diversified high-end, elegant, classic, innovative, environmentally friendly, and individual image to adapt to the diverse and personalized preferences of Chinese consumers. Increase brand identity and attractiveness.

In terms of brand communication, the brand should change from a single counter, magazine, TV and other traditional media to a multi-channel counter, magazine, TV, e-commerce, social media, live broadcast, short video and other emerging media, so as to adapt to the changes of Chinese consumers' information acquisition and consumption patterns, and increase the exposure and influence of the brand.

Recommendation 2: Strengthen the localization and personalization of the brand, and enhance the adaptability and loyalty of the brand. The brand should adjust and optimize its brand products, services, activities, etc. according to the characteristics and needs of the Chinese market, as well as the culture and psychology of Chinese consumers, highlight the localization and personalization of the brand, and enhance the adaptability and loyalty of the brand. Specific measures include:

In terms of products, the brand should develop and launch products that are more suitable for the Chinese market based on the skin type, climate, and living habits of Chinese consumers, such as the skin color, eye shape, and mouth shape of Chinese consumers, design and production More in line with Chinese aesthetic cosmetics; for the skin problems of Chinese consumers, such as dryness, sensitivity, dullness, etc., develop and launch more effective skin care products; provide and recommend more suitable hair care products and perfumes for Chinese consumers' hair type, hairstyle, hair color, etc.

In terms of services, the brand should provide and improve more intimate services according to the consumption habits and expectations of Chinese consumers, such as providing more trials, makeup trials, gifts, coupons, etc., to increase consumer experience and satisfaction; Provide more professional, personalized, interactive consultation, training, activities, etc. to increase consumer trust and participation; provide more after-sales, maintenance, recycling, etc, increase consumer peace of mind and loyalty.

In terms of activities, the brand should organize and participate in more meaningful activities based on the culture and psychology of Chinese consumers, such as combining Chinese traditional festivals, folk customs, customs, etc., to design and launch more distinctive theme activities to increase consumers Interest and emotions; combined with China's social hotspots, public welfare undertakings, star effects, etc., plan and participate in more influential public relations activities to increase consumers' attention and appreciation.

Recommendation 3: Strengthen brand cooperation and linkage to enhance brand resources and value. The brand should select and optimize its brand partners, distributors, distributors, etc. according to the opportunities and challenges of the Chinese market, as well as the needs and preferences of Chinese consumers, highlight brand cooperation and linkage, and enhance brand resources And value. Specific measures include:

In terms of partners, the brand should find and establish more strategic partners according to the development trend and competition pattern of the Chinese market, such as cooperation with China's local cosmetics brands, cross-border brands, star brands, etc., share brand resources, market channels, consumer groups, etc., to achieve brand complementarity and win-win.

In terms of channel providers, the brand should select and cultivate more potential channel providers according to the consumption structure and consumption patterns of the Chinese market, such as cooperating with China's e-commerce platforms, social media, live broadcast platforms, short video platforms, etc., and use Its powerful traffic, data, technology, etc., expand the coverage and influence of the brand.

In terms of distributors, the brand should optimize and motivate more capable distributors according to the regional characteristics and consumption characteristics of the Chinese market, such as cooperating with professional beauty shops, drugstores, beauty salons, etc. in China, to provide more product support, training support, promotion support, etc., to improve the brand's sales and service capabilities.