Cosmetics China Health care product
(+86)- 21-623 105 20 cosmetics@marketingtochina.com

Blog

The cosmetic market in China is a goldmine!

Girl cosmetics

The cosmetics sector in China ? A goldmine !

China is the world’s second largest cosmetics market with €23 billion in size and a growth of 26% last year and €203 billion revenue. It is particularly due to countryside towns that are developing faster than Beijing or Shanghai. With the e-commerce, the opportunities are of huge and the amount of potential customers are endless.

However, the marlet is dominated by few lucky ones, especially in the high-end sector. All the big foreign brands such as L’Oreal, NIVEA, Avon, OLAY and Shiseido are running the industry. It means they have already gained favor of Chinese customers. In fact, over 80% of China cosmetics market is dominated by foreign brands.

The current trends

Today, half of the market is dominated by skin care and make up product. Nevertheless, there are other sector that might be interesting to have a look such as medical cosmetics, the children’s skin care and the men’s skin care that are rapidly growing.

The medical cosmetics will bring more than 2 billion euros next year thanks to a growth rate of 10-20%. The children’s skin care is another potential market which is now lead by Johnson’s baby (80% market share !), Princefrog and Mentholatum. According to Euromonitor, men’s skin care experience an annual growth of 30%. The revenue reached 380 million euros in 2012 and will keep on going thanks to the acceptances from Chinese men that are caring more and more about their skin.

Customer trust more foreign cosmetics brands because it brings them quality and recognition. However, those brands are most of the time expensive and it allows only young or middle aged female in big cities to buy them.

ju-mei-sold-out

The importance of the e-commerce in the cosmetic sector

The e-commerce of China is doing really great lately. Average growth on the past few years of 30%, 200 billion euros revenue, the cosmetic sector has not been spare ! According to iResearch China the turnover has increased by 60% and reached 12 billion euros last year. The Chinese Internet offers different type of sites to do your purchases : professional cosmetics site (like Jumei), comprehensive sites and company on-line store such as Lancôme.

The main advantage of using the e-commerce site to generate your business is that you can reach much more customers, saving up budget and the trouble of negotiation with numbers of supermarket, shopping mall or stores. Besides, for brands that are not able to sell directly to small cities or rural area, ecommerce can even help to develop market there without spending money on distribution network. All you need to do is to promote your store and try to increase the traffic.

How to control your e-reputation ?

Light

Cosmetics are one of the products that demand a lot of budget to control your reputation. Most of the time, sales depend on it. To do so, you need to know where Chinese go to find information. If you control the source of information, you can successfully control the reputation.

SEO E-reputation :

Controling what can be seen and not be seen is an essential part of your e-reputation. Chinese customers will first look your cosmetic brand up by typing your brand name. You must control what they see by making sure that only good reviews, comments and stories are present on Baidu’s first page. That is a first and essential step.

SNS Social networks

The SNS are a key factor in China. Chinese cosmetics consumers, especially girls, tend to look for and trust what other users or key opinion leaders say about the product. There are two kinds of SNS you need to care about: micro-blogging and professional SNS.

ju-mei-iwom

51.87% of micro-bloggers will search the products they see on E-commerce sites which is more than the 49.91% who will go directly to the homepage of the brand. Pictures and links in the posts will also be checked by 49.57% of the micro-bloggers so it shows that you need to build a Social Media Integration for your brand and product.

Being official on Social networks is being trustworthy

To do so, we advise you to create an official brand account, realize the Design of it, publish interesting content about your brand, promote this account depending on your positioning and target customers.

On those sites, you will find many people, mostly girls, quite professional in cosmetics with their comment and evaluation on products they use. It is very important and it influences customers a lot.

Further readings

  • Stay tuned for our latest news about cosmetics there
  • Follow us on Linkedin

8 Comments to "The cosmetic market in China is a goldmine!"

  1. Reply
    Marcus Planneur
    August 27, 2014 at 4:18 am

    As it is often said, China is now the 800-pound gorilla in the room that cannot be ignored. If you stop doing business with China, one day you will be shut out by China or your competitor would have overwhelmed you because of their increased market share and profit in China. Think of the successes of GM Buicks, Apple Iphones, and even the humble Ferrero Rocher chocolate found that it can ship $ 100 million worth of chocolates to China each year because of its successful marketing and branding that suited the Chinese!
    Yes, doing business in China continues to be fraught with dangers of corruption, excessive gunaxi that backfires, cultural conflicts etc But it is still the country with consistently high growth while most of the other BRICS have fallen behind. And at least you are not braving gunfire, kidnapping, and possible regime change after you seal the deals. Just think of China as a tough chess opponent who challenges you to a good game, not a gangster ready for a fight. BTW, I am about to take my third trip there this year and am actually looking forward to the challenge, as afterall the cosmetics, culture, sights and people are just such delights to experience.

  2. Reply
    CEO
    August 27, 2014 at 4:18 am

    And Doing biz in China: respect the gov’t, protect yourself.

  3. Reply
    Ramon
    September 8, 2014 at 3:13 pm

    Ecommerce is surely the best channel in 2014. Every girls buy their product online and check on kissmiss the most popular products

  4. Reply
    church outfits
    May 3, 2015 at 6:43 am

    Quality content is the crucial to be a focus for the
    people to pay a quick visit the web page, that’s what this
    web page is providing.

  5. Reply
    Mauro
    February 7, 2016 at 6:17 pm

    dear Sirs
    I am export manager of some italy company in cosmetics field and cloth for yourg peoples 18 40 years old
    we are interested in enter in e-commerce china.
    please send more info.

Trackbacks for this post

  1. A panda to promote cosmetics in China | Gentlemen Marketing Agency
  2. 4 unavoidable social media for promoting your cosmetics in China
  3. Why Wechat is key to promote your cosmetic brand in China

Leave a comment

Your email address will not be published. Required fields are marked *