China’s beauty market is evolving — here are the top trends.
In the biggest e-commerce market in the world, beauty is consistently the most popular category by sales volume. China’s beauty market is evolving as consumer preferences continue to change.
Popular Chinese brands Dr. Plant and Timier House operate roughly 2,500 and 1,000 off-line stores, respectively, compared to just 400 Innisfree stores and 357 The Face Shop stores. Both Innisfree and The Face Shop are South Korean brands. Foreign brands accounted for an astounding 92 percent of the high-end market in 2017, according to the Hong Kong Trade Development Council. That’s because international beauty brands tend to invest more capital in R&D for product innovation, and have more experience investing in long-term strategic branding and marketing to differentiate their offerings.
Chinese customers have typically used simple cosmetics products such as lipstick and beauty balm cream, but now they are adding more steps to their makeup routines, thanks to influencers that post video tutorials on how to apply makeup. Mintel research notes that more than 40 percent of Chinese color cosmetics users are persuaded by celebrities and influencers when making purchasing decisions.
For example, in April Alibaba’s Tmall online marketplace rolled out a 699 RMB smart mirror that comes equipped with an AI-powered smart speaker. The speaker offers beauty tips, monitors UV levels and enables customers to order cosmetics products on Tmall once they run low on supplies. Voice commands can adjust light settings to ensure that users can see their faces properly.
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