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Keyword 4. Order fragmentation
Jan 24, 2019

Order fragmentation

        The pace of the market is getting faster and faster, and the tastes of consumers are changing rapidly. For many small and medium-sized brands, short, frequent and fast have become their new survival criteria.


         Li Yijia, the former Ali executive and founder of the body care brand Rever Cosmetics, believes that using the efficiency of the Internet to try and make mistakes and create a multi-brand, fast brand matrix is the survival mode of her new cosmetics company Poly Voly. Many small and medium-sized brands are trying to improve their supply chain model to improve their responsiveness to the market while reducing inventory pressure. The new gameplay of the brand will make the OEM order become zero and become fragmented.


        Many cosmetic processing companies have also clearly felt the pressure of“fragmentation” from brand orders and began to improve their production cycle control to adapt to the new rules of the game. However, the change has also brought about new convergence. The new market situation makes the cooperation between cosmetics foundry companies and brand parties closer. The first-line foundries will deeply participate in the brand's supply chain decision-making, and reduce their risks through synergy; some factories will even put in a lot of The funds "incubate" some potential brands.



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