In the first half of this year, the beauty industry ushered in a recovery, and the semi-annual report of foreign beauty brands was really amazing. The performance of 10 head enterprises such as L ‘Oreal, Procter & Gamble and Shiseido all achieved growth.
In the semi-annual reports of these international brands, "the fastest growth" and "more contribution" have become the most important comments on the China market. Shiseido’s business in China increased by 44.1% year-on-year, and L ‘Oreal increased by 34.2%. Even Amore Pacific, which had been in constant trouble before, relied on the market performance in China to turn losses into profits.
Why has the beauty market in China suddenly sprung up under the COVID-19 epidemic? On the one hand, the "face value economy" is in power, and the epidemic situation has made women’s demand for exquisite life stronger, and the penetration rate of beauty cosmetics has further increased; On the other hand, the epidemic has changed people’s shopping habits, and live broadcast and online celebrity delivery have improved the promotion effect and consumption conversion rate of beauty cosmetics.
What deserves special attention is the localization strategy of foreign brands in China market. As we all know, these international brands have always taken a high-end route in the China market, with flagship stores, shopping malls and duty-free shops as their main sales channels. However, in the past two years, with the development of e-commerce, beauty, as a trendy lifestyle, has become the new favorite of e-commerce platforms. Li Jiaqi, Viya and other big V live broadcasts have inspired more women to pursue beauty. Some domestic beauty brands aim at the opportunity, and through new channels such as short videos and live broadcasts, their popularity has been greatly enhanced by the "star +KOL+ amateur" model. Domestic beauty products such as Hua Xizi and Perfect Diary have become popular brands on e-commerce platforms.
In this context, foreign brands have also begun to change their thinking, put down their bodies and launch online channels. During the "618" period this year, the top 10 Tmall beauty brands were almost monopolized by international brands, and L ‘Oreal’s sales ranked first; In the little red book that young people prefer, Estee Lauder was the brand with the largest investment in the beauty field in the first half of the year. Shiseido also learned to use it flexibly, and brought the way of live selling goods back to Japan, where its headquarters is located, and achieved good sales results.
More and more people know the international brands in China market and the domestic brands that have shined brilliantly in recent years, and the competition in China’s beauty market is becoming more and more fierce. The international big names who have tasted the sweetness have to work hard on "localization" if they want to keep the "family property" that they have cultivated for many years.
Source: Economic Daily