We Chinese are already familiar with health products. In fact, no health product can truly achieve the miraculous effects claimed by manufacturers. How to open an online store? Due to fierce industry competition, the profits from health products are not as good as before, but they still belong to a typically high-profit industry for Taobao online stores. A certain product that advertises heavily on TV claims to use an American formula, but its selling price of less than 200 yuan compared to its production cost of just over ten yuan per box clearly shows that profit still takes the lion's share. Unlike drugs, health products have relatively lower research and development and production costs, and they don't need to be responsible for their effectiveness as long as they don't cause any problems when consumed, they can continue to be sold. Because of the high profit, manufacturers can accumulate considerable wealth in a short period of time. It is easy to imagine that health products have made quite a lot of money in recent years.
In 2012, the most profitable industry was cosmetics, mainly referring to imported high-end products. According to insiders, the retail price of a high-end eye cream ranked among the top in the world is about 900 yuan/50ml in mainland China, while it is around 600 yuan in Hong Kong. However, its manufacturing and R&D cost is only about 20-30 yuan RMB. Some high-end cosmetics, such as eye creams and lipsticks priced at several hundred yuan, have even lower costs. As for perfumes costing hundreds or even thousands, their costs are almost the same as the price of the perfume bottle. These highly profitable high-end cosmetics are not as gentle on consumers as the beauties in advertisements.
What sells best in online stores? The editor of Online Store summarized the most profitable industries in 2012, hoping to provide inspiration and help to those who want to open online stores. The eighth most profitable industry in 2012 was pet-related businesses. The seventh most profitable industry in 2012 was agricultural product processing with high profits. China is an agricultural powerhouse, but we lag behind in deep processing of agricultural products. Deeply processed agricultural products account for less than 12% of the total agricultural output. Take corn as an example, in the U.S., deeply processed corn accounts for more than 20% of the corn processing volume, with over 2000 varieties, while in China, the deeply processed corn volume is less than 9% of the total corn production, with only about 100 varieties. Steps to open an online store.
The fifth most profitable industry in 2012 was health products. Everyone knows about the huge profits in pharmaceuticals. In general people’s eyes, the profit margin of pharmaceuticals seems to be the highest. However, this is not the case. Compared to the above industries, the equipment, factory, and R&D costs of pharmaceuticals are much higher. Import pharmaceuticals' R&D costs are even higher due to high salaries and other reasons. Although the active ingredients in medicines may not be worth much, after passing through a few hands, the price of the medicine skyrockets like Sun Wukong jumping high into the clouds.
Among common daily-use chemicals, personal cleansing products generate the largest profits. Take toothpaste for instance, the cost of a 120g tube of toothpaste is only 0.5 yuan RMB, regardless of whether it is sold for ten or twenty yuan. And our everyday consumption of shampoo generates even greater profits, absolutely not less than that of toothpaste. Just think about all the shampoo advertisements on TV. When it comes to harm, we must mention the deception of turning a simple cleaning product into something with the functions of a health product, which is undoubtedly an insult to our intelligence.
The second most profitable industry in 2012 was daily chemical products. The emergence of DINK (Double Income No Kids) families in cities and the increase in elderly empty-nest phenomena have made owning pets a consumer trend. It is estimated that urban residents in our country spend tens of billions of yuan annually on pets. Since the 1990s, China has become one of the fastest-growing countries in the world for pet product production, with demands in all aspects growing at a rate of 15% per year. This brings an enormous market for pet investors and operators.
We can indirectly see how high the profit margins of white spirits are. In the past few years, CCTV advertising kings were almost monopolized by alcoholic beverage companies each year. One year, Qinchuan Liquor even shocked the nation by setting an ambitious goal during the bidding for prime-time advertising slots. Without sufficient profits, which company would dare to make such large investments?
The sixth most profitable industry in 2012 was pharmaceuticals. Among all beverages, non-carbonated fruit juice drinks have the highest profit margins. Market retail prices of a few yuan for fruit juice drinks have production costs of only one-tenth of their retail price. The cost of canned beverages is roughly the same. To put it simply, some beverage costs are almost the same as the cost of a perfume bottle. Of course, if we strictly calculate beverage costs, logistics costs must also be considered. Regardless, the profit margin of beverages is extremely high.
The fourth most profitable industry in 2012 was white spirits. The third most profitable industry in 2012 was beverages.
The above are the most profitable and high-margin industries in 2012. Have you realized the business opportunities contained within? Act immediately and strive to become a leader in your industry while earning your own wealth.