Chinese beauty market are hold by foreign brands!

As of 2024, China’s beauty market continues to be one of the most vibrant and rapidly evolving sectors worldwide. Driven by a growing middle class, an increase in disposable income, and a cultural shift that places a higher value on skincare and cosmetics, the market has become a hotspot for both domestic and international brands.

Introduction to the Chinese Beauty Market in 2024

While local brands are making significant inroads with innovative products tailored to Chinese consumers, foreign brands still hold a substantial share of the market, capitalizing on their long-standing reputations and premium positioning. Here are ten key facts that illustrate the current dynamics of foreign brands in China’s beauty market:

1. Market Size: The Chinese beauty market is one of the largest globally, with an estimated value exceeding $62 billion in 2024, showing robust year-on-year growth.
2. Premium Preference: Foreign brands, particularly from South Korea, Japan, Europe, and the U.S., dominate the premium segment, often perceived as offering higher quality and better safety standards.
3. Skin Care Dominance: Skin care remains the largest category within the beauty market, with foreign brands like Estée Lauder and L’Oréal leading in high-end skin care products.
4. Influencer Impact: International brands have effectively utilized Chinese influencers and celebrities to endorse their products, significantly influencing consumer preferences and purchase decisions.
5. E-commerce Prowess: Platforms like Tmall, JD.com, and WeChat have become critical for foreign brands entering the Chinese market, offering them direct access to a vast consumer base without needing a physical presence.
6. Consumer Trust: There is a strong consumer perception in China that foreign brands have more reliable and established R&D capabilities, leading to better product efficacy.
7. Regulatory Navigation: Foreign brands have become adept at navigating China’s complex regulatory environment, which has historically been a significant barrier to entry.
8. Local Adaptations: Many foreign brands have succeeded by adapting their products to meet local tastes and preferences, such as developing lighter formulas or shades suitable for Asian skin tones.
9. Digital Marketing: Advanced digital marketing strategies, including the use of augmented reality (AR) and virtual reality (VR) for virtual try-ons and skincare diagnostics, have helped foreign brands enhance the consumer shopping experience.
10. Sustainability and Clean Beauty: There is a growing trend towards sustainable and clean beauty products among Chinese consumers, a segment where foreign brands are perceived to be leaders due to their global commitments to sustainability.

Despite the strong presence of foreign brands, the competition from local players is intensifying as they leverage their understanding of local consumer behavior, quicker response times, and innovations in product development. Nonetheless, the stature and marketing muscle of international brands continue to make them formidable players in China’s beauty market.

Understanding the Chinese consumers expectations’ shifting, what a challenge !

The China’s growth economy which was noticed these last years involved new Chinese consumers’ pruchasing’s behavior. Indeed, they have different expectations especially regarding luxury and cosmetics products.

Actually, this new generation stays informed about last trends by browsing on online platforms. They are 55% to look for beauty tendencies through social media !

Then, Chinese girls regularly update their knowledge concerning fashion cosmetics and how to use its. Consequenlty, their needs often change and brands have to tailor them in order to further satisfy them by authenticity and products’ innovation.

To read more: Beauty and Personal Care in China

The foreign brands’ challenge in China

L’OREAL, the leading brand in China

Nowadays, many of foreign brands try to approach the Chinese market by understanding the Chinese consumptions’ skills like L’OREAL. The famous French brand took the opportunity of the Chinese market by acquiring Yue Sai, the first cosmetic brand in China in 2004.

This new acquirement allowed L’OREAL to adapt it strategy development in China regarding to the beauty market’s shifting. This effort involved further 3.2% of sales growth !

E-commerce, 50% distribution 

Currently, e-commerce is booming in China and the popular brand passes through Chinese social medias and famous platforms in order to reach Chinese consumers who are very connected. Moreover, in 2010 L’OREAL was the first international brand to sell products on Tmall Global. The brand’s goal is to create an online consumers’ experience.

Douyin, the Chinese counterpart of TikTok, has rapidly evolved from a platform primarily known for entertainment into a major player in China’s e-commerce landscape. This transformation is fueled by Douyin’s massive user base, high engagement rates, and innovative integration of shopping features directly into its short-video and live-streaming formats.

Explanation of Douyin as an E-commerce Platform

Douyin leverages its content-driven model to facilitate a unique shopping experience where entertainment and commerce blend seamlessly. The platform offers features like product links embedded in videos, live streaming sales, and an in-app store feature where users can browse and purchase products without leaving the app. This setup not only keeps the user experience smooth and engaging but also allows for instantaneous purchasing decisions, capitalizing on impulse buying behavior triggered by compelling content.

Douyin’s algorithm personalizes content and product recommendations based on user interactions, ensuring that users are more likely to see products that align with their preferences and behaviors. This level of personalization boosts the likelihood of purchases.

Tips for Using Douyin to Sell Products

1. Invest in Influencer: Collaborating with influencers who have established audiences on Douyin can drive significant traffic to your products. Choose influencers whose brand aligns with your products and who have a history of engaging effectively with their followers.

2. Create video Content: Your content should be as entertaining as it is promotional. Utilize Douyin’s array of editing tools and effects to create visually appealing videos that capture and retain user attention. Storytelling can be a powerful approach, showcasing your products in real-life scenarios.

3. try Live Streaming: Live streaming is a powerful tool on Douyin for driving sales. It allows for real-time interaction with viewers, offering the opportunity to demonstrate products, discuss features, and answer questions live. Engaging with your audience in this direct and personal way can significantly boost trust and sales.

4. Offer Exclusive Promotions: necessary in Douyin, deals . Use Douyin to offer special promotions, discounts, or limited-time offers. This can create urgency and encourage viewers to make immediate purchases.

5. Optimize for Douyin’s Search Algorithm: SEO on douyin is huge ! Use relevant hashtags, trending songs, and engage with current challenges or memes. This can increase the visibility of your content on the platform, drawing in viewers who may not already follow you.

6. Interact with Your Audience: Dont be rude .. Engagement can further be enhanced by interacting with your viewers through comments, creating content based on their feedback, and responding to messages. Building a community around your brand can lead to higher loyalty and repeat customers.

7. Ads & Track Analytics: Douyin provides analytics tools that can help you understand your audience better, track engagement rates, and adjust your strategy based on what content performs best.

 

Chinese culture is important too

Consequently, L’OREAL has learnt the traditional Chinese medicine in order to include the benefits in it products. Moreover, the brand have secured many Chinese ingredients such as mushrooms or mummified caterpillars to create natural products. This challenge enabled to reach further Chinese consumers who are very sensitive to their body and skin care.

Then, L’OREAL didn’t hesitate to produce actresses or famous people in it ads aims at promote the brand’s glamorous image around the Mainland. In addition, in 2014, the famous brand created a partneship with MAGIC, a cosmetic Chinese brand, to expertise a new skincare masks. Thus, L’OREAL learned further information about the cosmetics local market in putting investments in its Research and Innovation department in Shanghai. Thanks to these  funds, the brand is now very successful among Chinese young consumers with Hydrafresh Genius Water, as example.

L’OCCITANE, whitening products’ range

The French Provencale brand also is now part of the cosmetics market in China. It had to adapt it strategy too so that approach Chinese consumers.

From the cradle to the grave, Chinese population want to brigthen their skin.

Why?  

In the past years, rich Chinese had more white skin because they stayed inside instead of poor people working outside under the sun. Today, this trend continues and became a fashion trick. Indeed, getting the most white skin ever make people younger. Indeed, brightening products are used as anti-ageing.

That’s why, l’OCCITANE created the “Reine blanche” products with britghtening ingredients which meet a huge success among Chinese women. Body and skin care creams are made of plant which changes of colour under the sunlight and become whiter.

Further information: Foreign Cosmetic Brands in China: A Prosperous Market

Brands overseas compete against local brands

While some famous foreign brands succeed in penetrating the Chinese cosmetics market, they have to share it with local ones which have huge benefits.

Chinese consumers expect from more sophistication and their demands are more and more complex to satisfy. Consequently, local brands get more keys in order to understand their needs.

What factors?

Local brands are closer from Chinese consumers which ease its the understanding. Then, these brands have the possiblity to study each society and lifestyles’ shifting around them. It is easier to communicate with them and to adapt strategy quickly. This feature allows brands to create or maintain the customers loyalty.

In addition, Chinese are very attached to their old culture especially regarding their traditional medicines. Thus, thanks to their knowledge, Chinese cosmetics brands are able to develop their strategy around it compared to the western ones which have to provide more efforts to get information regarding Chinese culture.

The Herborist

This Chinese cosmetics brand got it and succeed in taking the opportunity of it knowledge. The brand used the traditional Chinese values so that launch products. It mixed the traditional Chinese medicine and new worldwide technology aims at create effective body and skin cares products. Moreover, the Herborist internationally expanded and get into Paris at the famous “Avenue de l’Opéra”.

Digital marketing’s solution

Foreign and local cosmetics companies are competing on the Chinese market. It is not easy to adapt strategy development for brands overseas which don’t know consumers’ expectation. That’s why, passing through the digital market represents a huge opportunity to approach them easier. Indeed, they are more and more connected and spend lot of times on e-commerce platforms and social medias in order to find their favourit platforms. These different supports are very important so that communicate with consumers and learn more about their needs.

Need a partner in China ? 

Our Cosmetic Marketing agency helps these brands to reach the Chinese consumers by using various effective tools on social medias such as promote campaigns or ad products so that engage their target. 

 

You can also read:

• Why cosmetics industry in China attracts foreign investments?
• 10 key tips for a successful brand launch in China
• China To Remain A Challenge For Global Beauty Players
• Top tweet of the week
• Top article about China 
• Cosmetics Market on cosmetics china agency
• Cosmetics Trends in China