In recent years, with the rapid rise of the Chinese beauty economy, many international beauty brands have rushed to layout and focus on the Chinese market. The German companies are among them who are now increasingly catching the eye of Chinese consumers seeking premium cosmetics and health products.
The growth rate of the global beauty market is amazing, and the Chinese market has an important position in the global beauty market. In fact, China has now become the world’s second-largest cosmetics market, and cosmetics have become daily necessities in Chinese people’s daily lives. Data show that the Chinese market, based on its huge population base, has a cosmetics volume of more than 358 billion yuan.
As the market evolves, Chinese consumers have become more rational, paying more attention to the actual effects of products and prefer more personalized products. Moreover, the Chinese market is undergoing a digital transformation. Aware of this, the German fashion makeup group Cosnova has begun to actively deploy the Chinese digital tools to enter the Chinese market and to expand the influence of brands in the market.
The performance of German beauty products in China
China’s economy has witnessed remarkable growth. Since Chinese people have more and more disposable money, they want to buy products of good quality and their consumption demand varies to enhance their lifestyles. There is a new trend for imported products as they are perceived as premium. German brands have been particularly appealing for high-quality and strict manufacturing standards, not only in European countries but also in China.
Chinese consumers’ rising enthusiasm for German cosmetic and wellness products has not been decreased by the epidemic. During the 6.18 Mid-Year Shopping Festival, German products were among the most popular items on Tmall Global, Alibaba’s cross-border e-commerce marketplace.
German Beauty Brands are Attractive to the young generation in China
With the rise of “generation Z” between 1995 and 2000, more rational young consumers prefer personalized, niche, and high-end quality products. In terms of innovation, imported products have played a unique leading role, filling the product gap in the Chinese cosmetics market to a certain extent.
For example, around 2012, South Korea took the lead in launching the BB cream that swept the Chinese market and even the global market, which rewritten the pattern of base makeup products; around 2016, the famous Spanish ampules triggered a new trend in skincare.
Having seen the success of other foreign brands in the Chinese market and after tests of the market, German cosmetics company Cosnova has made great efforts in the Chinese 618 festival and boosted its year-over-year sales during the festival in China, by a year-on-year of 25%.
Social e-commerce is booming in China & German Beauty Brands already got it
Before the real launch of its cosmetic products in the Chinese market, Cosnova, the mother company of Essence and Catrice, has already many reviews and recommendations on Weibo, Xiaohongshu, Zhihu, and other platforms, which means it has a good reputation and brand awareness in the Chinese market.
Social e-commerce is the new trend in China, social networks have opened online stores, live-streaming selling, or provided purchasing links in social media content. Based on the giant user base of social networks, this kind of e-commerce can reach quickly a lot of targets.
“Livestreaming is ideally suited to translate the haptic and sensory buying experience into the digital world,” said Cosnova Founder and President Christina Oster-Daum.
For instance, taking advantage of the popularity of the 618 e-commerce festival, the Cosnova group has teamed up with KOLs on Taobao live and Weibo Live to attract consumers and close the distance between the brand and the fans. Through live streams, views could see the KOLs they love and trust presenting Cosnova’s products and explain why they are worth buying. As a result, the brand increases its sales and got new consumers: on that day, nearly 97% of the orders placed via the live stream were made by first-time customers.
The open of cross-border flagship store on Tmall
Due to the restrictions of purchase channels, complicated physical store opening procedures and the development of Chinese cross-border e-commerce guided by Chinese e-commerce leader-Alibaba Group’s Tmall Global, many brands started to sell on the cross-border platforms.
Tmall Global was launched in 2014 as an extension of Alibaba’s Tmall marketplace, with nearly 26,000 brands from 84 countries and regions, of which more than 80% enter the Chinese market for the first time. It is a dedicated gateway for overseas brands to make their first entry into China and reach Chinese young consumers, who are seeking high-quality and special products from abroad.
The Cosnova group, starting with Tmall’s overseas flagship store, gradually penetrated the Chinese cosmetics market. Upon arrival, the German cosmetic giant organized a series of activities based on the habits of Chinese consumers.
Selling on Chinese cross-border platforms can save businesses time and money to enter the Chinese market. Consumers who are willing and search for purchasing imported products are gathering on those platforms.
Chinese digital ecosystem is an opportunity for both Chinese and foreign (German) Beauty brands
Chinese social and e-commerce ecosystems are not only opportunities for China’s domestic brands but also offer a possible channel for foreign brands to sell their products directly to the Chinese giant market. Those businesses who can capture this development chance can definitely have a lead over competitors.
For European consumer brands who are going through a rough time because of the coronavirus, they want to open up the Chinese market as it is an opportunity for them to procure growth in order to overcome the crisis. Just like the case of many cosmetic brands, the Chinese market is very promising and the last saving straw in 2020. E-commerce has helped the Chinese retail industry with its remarkable logistic, well-developed customer management system, and powerful e-commerce.
Since 2012, GMA has been engaged in foreign businesses’ entry into the Chinese market. As an expert in the Chinese market and Chinese digital marketing, we are an efficient and professional partner for your strategies to gain more influence on the market.