A Leading Cosmetics Group
?Challenge
This cosmetics group operates 8 brands spanning premium to mass-market lines and had long suffered from daigou (cross-border reselling) and cross-regional diversion. A popular face mask officially priced at ¥299 was found on diversion channels for as low as ¥120, causing massive attrition of core distributors (retention rate only 55%). Additionally, the brand lacked direct consumer touchpoints, with marketing campaigns entirely dependent on e-commerce platforms.
!Solution
One-product-one-code anti-counterfeit verification + regional diversion control deployed together. Every product assigned a unique anti-counterfeit code; consumers scan to verify authenticity and enter the brand's official verification page. Outbound shipments bound to distributor regions; scan IP + geo-fencing automatically detect cross-regional diversion. Scan marketing module transforms the verification page into a brand private domain entry point, supporting points mall, membership tiers, repurchase coupons, and other refined operations.
Results
Within 3 months of launch, diversion rate dropped from 20% to 1%. Core distributor retention soared from 55% to 95%, with annual distributor satisfaction survey scores hitting record highs. Private domain user pool grew 500% within 6 months, membership repurchase rate up 35%. This case was recognized by the Cosmetics Industry Association as Best Channel Management Practice of the Year.