With its increasing popularity, e-commerce platforms help cosmetic companies to increase their sales in China.
The beauty online market in China has grown by a whopping 200 percent since 2006, as reported by Kline Group.
In 2013, the value of beauty market in China was USD54.32 billion and is estimated to increase up to USD113.9 billion in 2017. On the other hand, at the beginning of 2014 the value of cosmetics online reached USD1.35 billion. At that pace, the market is expected to have it’s highest growth rate within the next few years. Skincare is the most popular category in online beauty market, with more than two-thirds of the market. The next important category involves the make-up products accounting for 20% sales. The beauty best sellers are masks which represent a spending of USD13.6billion per person and face creams which accounting for USD21.7 per customers.In order to put the growth into perspective, France is seen as the biggest market for beauty in Western Europe, however only the online cosmetic market in China it has reached the values of the whole beauty market in France, as reported by Karen Doskow, manager of Kline industry.Another example of this increasing trend, is that internet beauty sales in China accounts for almost nine times the number of internet beauty sales in the U.S. Even though the sales of beauty sales are already seen as high in this countryThese past few years,economic growth, urban development and the rise of middle and upper class have caused major changes in the Chinese society.Of course, the beauty industry has not been spared by theses deep changes that translated into new ways of purchasing cosmetics. We are talking about online purchases, a key component of any strategy to increase your sales in China these days.According to the “Beauty Retailing Throug Direct Sales in Emerging markets” report, the enormous growth of cosmetic’s e-commerce is also due to the online shops known as “e-malls”.The main e-commerce sites in China to purchase beauty are Tmall, Jumei and JD.com representing 83.3% of the total value of the cosmetic online market.As reported by Karen Doskow, the boom of those e-commerce platforms will still increase thanks to the better socio-economic status of Chinese consumers and the convenience and big number of choices that shoppers can find through those platforms.The e-commerce channels in China allow users to purchase a huge variety of local or foreign products from a unique platform.According to Euromonitor, during the last few years, online cosmetics sales have grown while sales through physical stores have decreased because via online purchases, consumer have access to more products available. Indeed, Chinese customers like to visit retail shops, to try cosmetics before going back home and buy them online on Tmall and the like.The report also denoted that e-commerce platforms can not offer person-to-person sales, something that is very valued by buyers, nonetheless e-commerce sites are solving this lack through consultants who work on behalf of marketers or brands in order to provide to consumers the personal communication they are looking for.
Since the market has already been growing for a few years, a large number of Western brands have entered the market and try to take over the market.However it is not as easy as it seems, many Western cosmetics brands have yet to fully grasp the market trend and how Chinese customer react in order to craft a proper strategy.We can do that for you. With our extensive knowledge of the market and understanding of the Chinese customers’mind we can help you increase your sales in China. Contact us for more information about our services and our expertise in cosmeticsIf you want to stay in touch with our latest news about cosmetics in China, go here