5 Lessons to Learn for Beauty Brands Entering China in 2023

Published on: July 31, 2023

China’s cosmetics market is experiencing an unprecedented boom, with the beauty and personal care sector projected to reach a staggering US$78 billion in revenue by 2025. What’s even more remarkable is that the country is poised to drive nearly 70% of the Asia-Pacific beauty and personal care market growth up until 2025.

Venturing into China’s thriving beauty market can be exceptionally rewarding. However, to succeed, it’s crucial to thoroughly understand local preferences and effective strategies for consumer engagement.

Let’s dive into the key insights that global beauty brands need to know when entering China:

1. Skincare efficacy is top trend

Technological advancements have sparked a significant rise in consumer demand throughout China for products catering to specific skin concerns and offering advanced and effective skin repair solutions.

According to the 2022 white paper jointly published by Sephora and China Business News, Chinese consumers now consider sun protection, whitening, anti-ageing, soothing, moisturising, and oil control as essential elements of their skincare routines. Furthermore, they meticulously scrutinise product ingredients and prioritise research and development.

2. Diversify digital commerce platforms

The influence of China’s e-commerce platforms on shaping consumer behaviour has experienced exponential growth. These platforms provide an excellent avenue for the beauty community to share shopping experiences and product recommendations.

For brands, there is a plethora of platforms available, ranging from well-established ones like Tmall to emerging ones like Douyin and Xiaohongshu. By diversifying into several sales channels, brands can reach a significantly wider audience while distributing risks and reducing the impact of market volatility.

3. Navigate intense competition

Foreign brands entering the Chinese market must be prepared to face intense competition. To stand out, they need to showcase their brand values, share compelling stories, and highlight initiatives that forge stronger connections with consumers.

Differentiation is key to gaining traction in this highly competitive landscape.

4. Narrow target audience is vital

Targeting the right audience is crucial for foreign brands.

Rather than relying solely on broad demographics like “Gen-Z,” gaining insights into consumer preferences and mindset empowers the development of personalized marketing strategies and product offerings that genuinely cater to their needs and expectations.

5. Harness the power of KOLs and KOCs

By collaborating with influential key opinion leaders (KOLs) and key opinion consumers (KOCs), brands can substantially enhance their visibility and credibility in the dynamic Chinese market. KOLs play a crucial role in providing credibility and expanding the brand’s reach, while KOCs bring authenticity and relatability to the table.

Partnering with these influential figures empowers brands to achieve remarkable business growth by capitalising on their extensive reach and influence among consumers.

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5 Lessons to Learn for Beauty Brands Entering China in 2023

1. Skincare efficacy is top trend

2. Diversify digital commerce platforms

3. Navigate intense competition

4. Narrow target audience is vital

5. Harness the power of KOLs and KOCs

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