Analysis of Challenges to Banmuhuatian's ¥25 per Jin (Approx. 500g) Pricing Strategy

Based on collected data, this paper provides a systematic analysis of the challenges facing Banmuhuatian’s ¥25 per Jin (approx. 500g) pricing strategy.

Founded in 2010, Banmuhuatian is a domestic Chinese body care brand whose core pricing strategy focuses on the mid-range price band of ¥25-150 [1]. Cleansers and bath products priced at ¥25 per Jin (approx. 500ml/500g) form the brand’s basic product portfolio. This pricing strategy not only reflects the cost-effectiveness advantage of domestic brands but also faces multiple market challenges.

The current Chinese skin care market is characterized by “high entry rate, high elimination rate”. As of October 2025, the number of cosmetics-related enterprises in China has exceeded 77,000, with 39,235 in the start-up phase [2]. Banmuhuatian’s main competitors include:

• International budget brands
  : Such as CeraVe, Nivea, etc., which continue to expand with brand endorsement and R&D advantages
• Emerging domestic brands
  : HFP, Perfect Diary, Florasis, etc., which have risen rapidly through social media marketing
• Upgraded traditional domestic brands
  : Proya, KanS, etc., which seize market share through supply chain integration and star product strategies

In the mid-range price band (¥200-500 is the focus interval for domestic brands), the ¥25 pricing falls into the mass market category, which has low market concentration, easily spawns niche tracks, but also faces fiercer competition [2].

Current consumers are characterized by “pursuing cost-effectiveness, but prioritizing quality and service” [3]. The core contradictions facing the ¥25 pricing include:

• Increased efficacy expectations
  : Gen Z consumers have an increasingly strong rational demand for “ingredient supremacy”, requiring products to have clear functional value [2]
• Emotional value demands
  : Young consumer groups not only pay attention to product functions, but also value brand tone, emotional resonance, and values recognition
• Balance between quality and price
  : In the same price band, consumers expect to get “surprises beyond the price” [3], which requires brands to provide experiences that exceed the price in multiple dimensions such as ingredient efficacy, application feel, and product texture

Banmuhuatian’s user profile shows that its target group (52% are women aged 18-24) has “moderate consumption capacity, but is willing to try new things and pay for their preferences” [1], which puts forward higher requirements for product innovation and brand tone.

: Raw material costs (natural floral ingredients such as roses, peonies, jasmine), transportation costs, and packaging costs continue to rise. Brands like Miyuequan can only achieve a 20%-30% cost reduction through supply chain integration [3].

: The functional skin care market requires brands to increase investment in ingredient R&D. 2025 skin care market data shows that both traditional domestic brands and emerging brands have increased investment in R&D of functional ingredients, driving product upgrades through technological strength [2].

: Online traffic costs continue to rise, and brands need to continuously invest in content platforms such as Douyin and Xiaohongshu to maintain exposure. In 2024, Banmuhuatian collaborated with Dilraba Dilmurat as its spokesperson, adopting the strategy of “high-end premium products + top national spokesperson + high-end media advertising” [4], which further pushed up marketing costs.

Banmuhuatian is currently in a transition period from “targeting young people in small towns with a popular positioning” to “adjusting to a higher tier” [1]. The ¥25 pricing faces dilemmas in brand upgrading:

• Price anchoring effect
  : The low-price image may restrict the brand’s expansion into the high-end market, and once consumers’ price perception of the brand is formed, it is difficult to change
• Channel expansion challenges
  : When expanding from online to offline channels, offline channels have higher requirements for brand gross profit, and the profit margin of the ¥25 pricing is difficult to support offline operating costs
• Competitor benchmarking pressure
  : The influence of international brands such as L’Occitane in the body care sector, as well as the rise of high-end domestic brands (e.g., Mao Geping has a market value exceeding ¥40 billion) [2], has compressed Banmuhuatian’s brand upgrading space

In the ¥25 price segment, product differentiation faces challenges:

• Ingredient homogenization
  : The basic formula technology for cleansers and bath products is becoming mature, leaving limited room for differentiation
• Single efficacy demand
  : Basic cleansing functions are difficult to build obvious competitive barriers
• Fragrance and packaging innovation
  : Although Banmuhuatian has collaborated with international fragrance company Symrise [4], fragrance innovation is easily imitated and copied

The current beauty sales channel pattern is a dual-wheel structure of “online channels leading growth, offline channels reshaping experience” [2]:

• Online traffic costs
  : Customer acquisition costs on platforms such as Douyin and Taobao continue to rise, and the ROI pressure of low unit price products priced at ¥25 is significant
• Risk of promotion dependence
  : During e-commerce shopping festivals, brands need to participate in price competition, further compressing profit margins
• Offline channel expansion
  : Banmuhuatian launched its “Root Downward · Flowers Thrive Together” offline strategy in 2024 [4], but the ¥25 pricing has limited display space and gross profit contribution in offline channels

As a domestic brand, Banmuhuatian needs to build stronger brand trust in consumers’ minds:

• Efficacy verification
  : Consumers have natural doubts about the efficacy of budget products, and continuous product effect verification is needed to build word-of-mouth
• Brand story communication
  : The brand narrative from “natural floral ingredients” to “proud of domestic brands” requires long-term investment
• Ingredient transparency
  : In a market environment where “ingredient-focused consumers” are prevalent, ¥25 products need to provide clear ingredient value propositions

Based on the above challenges, Banmuhuatian may consider the following strategy adjustments:

1. Product tiering strategy
   : Launch mid-to-high-end product lines priced at ¥50-100 on top of the ¥25 basic products to meet consumption upgrade demands
2. In-depth supply chain integration
   : Reduce raw material costs through the advantages of raw material planting bases to enhance price competitiveness
3. Differentiated R&D
   : Focus on exclusive patented technologies for floral ingredients to build product moats
4. Brand value upgrading
   : Leverage spokesperson influence and content marketing to enhance brand tone and premium capabilities
5. Private domain traffic construction
   : Reduce reliance on platform traffic and establish channels for direct reach to consumers

Banmuhuatian’s ¥25 per Jin pricing strategy faces multiple challenges in the current market environment, including fierce homogenized competition, evolving consumer demand, cost pressures, brand upgrading dilemmas, and rising channel costs. This strategy is suitable for the brand to quickly gain market share in the early stage, but in the long run, sustainable growth requires product innovation, brand upgrading, and supply chain optimization.

---

[1] The Era of New Chinese Chic: Why Domestic Brands Like Banmuhuatian Can Rise? https://www.pinguan.com/article/content/19220.html
[2] 2025 Beauty Market Insights: Seeking Hundreds of Billions of Yuan in “Quality” Transformation Amid “Stock Competition” https://www.industrysourcing.cn/article/472325
[3] Budget Beauty: The “Toughest Track” in China’s Market for the Next 5 Years https://www.jiemian.com/article/12035139.html
[4] Root Downward: Banmuhuatian Collaborates with Dilraba Dilmurat to Launch Offline Expansion https://www.hzpb.com.cn/News/Index/detail/id/7327.html