Lessons From Chinese Beauty Brands


The most dynamic and rapidly growing market in the world, which has become the focus of international companies. What are their keys, code and what lessons can we learn from local companies that are demonstrating resounding success?


>>Focus on Chinese Market

The Chinese cosmetics market is booming, with a growing interest in beauty products driven by rising incomes and changing consumer preferences. As new entrants look to enter the market, it’s important to understand the success stories of top-performing brands and the lessons they offer for marketing strategies and product innovation.

In recent years, Chinese consumer goods manufacturers and retailers have taken big bites out of the share of China’s cosmetics and beauty products market once controlled by well-known international brands, mostly from the United States and Europe. While their victories were in China, these so-called Chinese beauty companies have a few lessons they could teach other global consumer goods companies about being agile.

After navigating the challenges of the Chinese market, emerging cosmetics brands are steadily mastering the art of capitalizing on growth opportunities through e-commerce platforms like Douyin. According to Feigua Data, Douyin's cosmetics sector generated a staggering $13.6 billion (RMB 97.7 billion) in the first half of the year, marking a remarkable 28% year-on-year increase. If this trend continues, the beauty industry's GMV on Douyin could soar past $27.8 billion (RMB 200 billion) by 2024.

Forecasts projecting to exceed $100 billion by 2025, with an annual growth rate of approximately 8-10%. Leading segments include skincare, makeup, haircare, and fragrances, with skincare at a share superior than 50%.



>> What are The Most Successful Cosmetic Brands in China?

To succeed in the Chinese cosmetics market, it’s essential to study successful brands like L’Oreal, Estée Lauder, and Pechoin. Understanding China-specific consumer behavior trends and preferences is crucial for developing a strong brand identity.

Successful adaptation examples include Proya’s anti-aging products tailored for local skin types and Inoherb’s use of traditional Chinese medicinal herbs in its skincare line.



>> Successful strategies from leading brands 

1. 1. Livestreaming is a key tool 

Livestreaming is one of the most effective ways for brands to engage with consumers as it plays a key role in a successful export strategy.  

Livestreaming has shaped the ecommerce agenda in China and enables international brands to stay front of mind for Chinese consumers – particularly in the wake of offline disruptions caused by the Covid-19 pandemic. 

In 2021 the livestream shopping market in China reached RMB 2trn, or more than US$300bn. 

Alibaba hosts a dedicated livestream shopping channel, Taobao Live, which enables consumers to watch their favourite influencers or brands on a livestream, to learn more about products and category trends, ask questions and get real-time answers about the product or brand, and make the purchase straight away without even needing to leave the stream. 

As brands and retailers are reaping the benefits of livestreaming in China there will be expansion into even more innovative uses of technology to drive greater brand engagement. 

2. 
   2. Now is the time to innovate

As the beauty sector continues to show, now is not the time to stand still. The brands that are pushing the envelope and trying out new products and ways of marketing are the ones that are enjoying the most success. 

One of the most powerful ways the brands behind the festival’s trending beauty products were able to achieve such strong growth and connect with customers was through employing the latest tech innovations in their brand engagement strategy. 

3. 3. Don’t be afraid to go niche 

It has been proven that there is increased demand for niche beauty categories, giving plenty of opportunity for British beauty brands to hone their creativity and product innovation for a market that is open to trying out new things. 

Alongside the big beauty stalwarts, niche beauty categories are growing. 

Throughout Alibaba’s 11.11. Global Shopping Festival there was a huge uplift in sales of antioxidant facial masks, hot and cold facial beauty devices and anti-inflammatory serums. 

In addition, 148 different brand categories saw gross merchandise value growth of more than 100% proving that there is a growing appetite for new and exciting innovations. 

>> Conclusion

Chinese beauty market presents attractive opportunities,  to succeed in China’s cosmetics market, new entrants must focus on marketing strategies that resonate with Chinese consumers, innovate products with favored ingredients, and adapt to popular trends. The regulatory environment can be challenging, so building strong relationships with distributors is important.

We hope the following China brands can inspire you next success.

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Post time: 2024-11-10 21:11:15

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