Final target is sell in China, but take 3min to read this article. The cosmetics sector around the China mainland continues to be rising at a fast tempo in tandem along with the quick advancement in the Chinese financial state in recent years.
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Data from Euromonitor reveals that overall retail income of skincare goods and make-up products in China arrived at RMB169.1 billion and RMB28.three billion respectively in 2016, acquiring year-on-year advancement of 5% and 12% respectively. The desk underneath shows recent years’ retail profits of cosmetic merchandise by wholesale and retail enterprises over a designated scale.
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Top Beauty Products in China
Latest composition of China’s shopper market place of beauty solutions:
- Skincare solutions: the fastest escalating sector inside the cosmetics market place.
- Shampoos and hair care items: a marketplace specialized niche getting saturated, observing growth decelerating.
- Make-up products and solutions: the market significantly from saturated, significantly for enhancement products, this sort of as colour correcting (CC) and blemish balm (BB) product. Gross sales of eye make-up merchandise recorded major advancement in recent years.
Goods for kids: product sales of products suitable for use by small children continue on to soar.
- Sunscreen goods: sunscreen products help assure income is not going to gradual down during common quiet seasons.
- Anti-aging solutions: cosmetic merchandise that aid consumers keep youthful and struggle ageing are progressively well-liked.
Sports activities cosmetics: lots of people who really like sports and health pursuits are keen to take care of a sexy visual appearance likewise. They need athletics cosmetics that will enable reduce the lack of moisture and they are anti-odour, anti-sweat, anti-bacteria, packaged in compact, moveable measurements.
- Cosmeceuticals: individuals have growing recognition of solutions which mix cosmetic and pharmaceutical options, such as location lightening product, zits remedy lotion and acne breakouts ointment.
Green/natural cosmetics: containing all-natural or nutritional elements, these kinds of as aloe and vitamins.
China’s cosmetics trends
Currently, China’s skincare goods sector is trending in direction of the high-end. Euromonitor figures exhibit which the 2016 market shares of high-end skincare merchandise far outstripped that of mass marketplace fast-moving alternate options. Buyers favour key global brand name skincare products and solutions, and expending practices are switching from price-focussed to high-quality and brand driven.
China’s domestic cosmetic brand names executed incredibly perfectly in 2016, the main reason getting growth into second- and third-tier marketplaces. They have got also been acquiring on the net product sales vigorously and boosting promotion on social media (WeChat and Weibo) to raise brand recognition.
In accordance to China’s Skincare and Cosmetics Industry, a 2016 HKTDC Study study report, Chinese women’s most vital considerations for buying cosmetics include things like: “product benefits/efficacy” (66%), “brand” (64%) and “word-of-mouth” (60%). Young respondents were being a lot more motivated by factors these kinds of as “word-of-mouth” and “price”, though experienced respondents had been extra captivated by “natural/organic/herbal ingredients” and “high-tech/biotech products”.
The main shopper teams for make-up goods tend to be the post-80s and post-90s generations, who worth the looks and trendiness on the solutions, and therefore are hugely delicate of product or service updates. Therefore, numerous makes are collaborating with film/TV stars and beauty bloggers, or positioning embedded advertisements in films/TVs and enjoyment gatherings to be a solution to increase sales.
Based on the HKTDC survey, women of all ages in China have gradually formed the pattern of placing on make-up. This is certainly significantly genuine for young women, aged 20-30. The 88% of the age group putting on make-up is higher than that of 31-45 12 months aged gals, at 83%. Guys also are commencing to take care of their skin, with 63% of male respondents using cleaning milk, lotion or confront cream.
Men’s cosmetics sector
The men’s cosmetics sector displays powerful advancement, specifically skincare products for guys. In accordance to estimates by Euromonitor, the male skincare products and solutions market place expanded by 5% year-on-year in 2016 as additional and more male people are receptive to men’s skincare and make-up goods. In 2016, male accounted for 52.2% of mainland’s overall populace. Nonetheless, the share of cosmetic solutions for guys within the general cosmetics sector is relatively compact. Oil-control and cleansing are the two major worries. Though facial cleansers go ahead and take lion’s share with the male market place, need for specialty products and solutions like masks, sun-blocks and people with whitening and moisturizing capabilities is likewise rising. This demonstrates that male customers are having to pay much more notice to skin problems these kinds of as ageing and coarseness.
Cosmeceuticals: organic cosmetics
Cosmeceuticals, primarily Chinese organic cosmetics, are opening up a different territory while in the cosmetics current market. It can be understood that lot more than 170 enterprises have tapped into China’s cosmeceuticals current market to this point, quite a few of these renowned pharmaceutical firms in China, this kind of as Tongrentang and Yunnan Baiyao. Cosmeceuticals have only a marketplace share of about 20% inside the mainland at present. In Europe, the US and Japan, cosmeceuticals choose a 50-60% share. It is thought that China’s cosmeceuticals market place has considerably room for advancement
Whilst cosmeceuticals have professional medical qualities, they can be labeled as cosmetics because you can find nevertheless no official definition for that term “cosmeceuticals” on the mainland. According to the Restrictions around the Hygienic Supervision in excess of Cosmetics, no health care jargon or claims of professional medical efficacy should be utilized in beauty items’ packaging or instructions.
In the cosmetics market, consumers’ perspective has transformed substantially. Nowadays, shoppers are more impartial in creating selections. Instead of being affected by marketing or advertising strategies, they collect details by way of unique channels and think about various aspects ahead of selecting goods. Shoppers is often grouped into a few important tiers, particularly higher, middle and reduced, depending on their desire for brand name, excellent, and price, in addition to consumers’ paying for electricity. Prospective buyers of imported brand name products while in the high-end current market are generally high-income earners in big and medium-sized cities. Nearly all of them are young and middle-aged girls who prefer famed cosmetics makes from Europe, the US and Japan.
Men and women are increasingly knowledgeable of cosmetics questions of safety. A series of difficulties arising from unsafe goods have set customers, suppliers and regulatory authorities on alert. It is actually thought that the promulgation on the Hygienic Normal for Cosmetics and also the Hygienic Regular for Cosmetics Output Enterprises can assist control the behavior of cosmetics companies and secure the rights of people.
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To stand out from the huge competition in China, to build an evocative and high qualitative image is crucial. Chinese consumers do not rely a lot on what companies are saying due to many scandals happened in the past. They build their own appreciation by making researches and a Brand’s word of mouth is very important.
Of course, you have to ensure your brand’s value and provide Chinese with quality product or service, but a good branding strategy will help you overtake local brands and gain a competitive edge over foreign competitors. Digital is the future of branding and Gentlemen Marketing Agency is specialized in this area. We help you to create and grow your brand in China by using the latest digital tools.
Example of Case Study : NEIMA SITAWI
Neima Sitavi is an Italian fashion boutique brand founded by an America-born fashion designer, Neima Sitawi. GMA took this project when they just founded, helped them promote their fashion attitude in the Chinese market.
- The personal branding here is closely linked with the brand’s image; it is important to show the unique brand attitude. Thus, we promoted the collection booklet and managed Neima’s personal branding in China through PRs. 200 quality contents were created with an increase of 300% of exposure.
There are 750 million netizens in China and most of them (80%) are using their smartphone to connect to the internet. Social media platforms have become their main interest online. They are connected to follow the news or their KOLs (Key Opinion Leaders in China), to be entertained or for work. In fact, the limit between a professional use and a personal use of social media platforms is disappearing.
Also, when consumers need information, they research online to find out. Your brand needs to be referenced online in order to connect with your Chinese consumers. The main social media platforms such as WeChat or Weibo, the first for a daily communication and the second for micro-blogging, are now used as research tools by Chinese to find details about your product or service or to contact you.
We help you to choose a suitable strategy and take care of creating your page or account on the chosen network. Our effective Chinese staff will be in charge to answer all questions and requests from users.
Example of Case Study: FASHICON
Fashicon is an app that connects fashion lovers with stylists for personal outfit tips and advice. It is very interesting for a community of people with a common interest in fashion to share ideas, inspirations, and give advice to each other. They contacted GMA for helping them to increase visibility and get more engagement in China.
- We made social media campaign on weibo and wechat in order to increase its e-reputation and also worked on offline promotion. The campaign results in a visible increase in the brand reputation, gaining +80% of exposure. The Q&A post wrote for Fashicon ranked on 1st page on Baidu.
Today, Chinese consumers do their purchase most of the time online, through some specific e-commerce platforms. Actually, a lot of physical stores in the big cities fall into the dealing of being a showing-room. The trend of online shopping occurred since early 2010 with Taobao, launched by Alibaba Group. Because of the fast pace of life in China, people are seeking for more efficient solution and services to get straight to the point. Another reason is the convenience of e-commerce. We can find a larger range of products on the Marketplaces such as TMALL or JD.com, even imported products and foreign brands not available in China.
However, all these platforms are not equal. VIPshop and Little Red Book, for example, might be better to sell cosmetics than the other. We will find the best distributors to sell your products in China. Customers must find your product in a strategic location, whether it is online or in physical stores.
Example of Case study: RENE FURTERER
René Furterer is a French cosmetics company, located in Paris. They are specialized in hair care and beauty. The brand provides a wide range of products for different types of hair in China. The Cosmetics industry is expanding rapidly in China and is now among the most important sectors in the country with Chinese consumers’ new focus on beauty habits.
- We audited their TMALL and Taobao stores to facilitate sales. An in-depth report on performance/sales stats in their e-commerce field. Market competition analysis; also we manage the social media marketing with KOL’s. The TMALL optimization resulted in sales increase. At total 100 kols engaged with the brand, over 60k of new followers and a significant improvement of brand’s visibility (2.1M views).
TMALL’s B2D Strategy is changing the distribution in China
Recently, the platform has implemented a B2D strategy (Business to developers) to resolve the problem of China’s distribution. Through a dedicated application, TMALL manages to connect distributors with the brand directly to avoid any intermediate connections. Concretely, while a brand sells its product to a distributor priced at RMB 20, when the final consumer wants to buy the product, the price could have already easily reached RMB 200 on the market. By gathering all distributors, and providing them with the means to connect to the brand, this allows significant gains for all participants (the final customer, as the intermediary distributors) and therefore the success of the product and its brand in China.
When e-commerce combines with social: Social commerce
Little Red Book or Xiaohongshuis an e-commerce platform. But it is above all a platform that provides users with shopping tips, products reviews, advice and promotional offers. Xiaohongshu gets a rapid development these years.
The app already has more than 70 million users. By providing useful contents, Xiaohongshu is keeping its users on its platform every day. Little Red book analyzes the data of its subscribers so it can deliver customized content according to their tastes and expectations. The application keeps developing this group cohesion by strengthening the community feeling of individuals.
We are a Shanghai-based digital marketing agency, working in a multicultural environment. With more than 5 years of experience with multiple clients from all around the world, we have developed many successful projects and acquired the know-how to deliver results. We aim to help and partner with foreign companies to develop their business in the Chinese market.
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