China’s Beauty Market: Top Tips to Sell Cosmetics

China’s Beauty Market: Top Tips to Sell Cosmetics

One of the most lucrative markets for putting money in is the expanding Chinese cosmetics industry. China’s beauty market has had significant growth in recent years, and it is expected to exceed 564.4 billion yuan by 2025. Given that China has the second-largest cosmetics market in the world, it makes sense that the majority of cosmetics businesses are eager to join this profitable sector.

Furthermore, Chinese customers think that foreign brands offer higher-quality cosmetics, and they like imported cosmetics. However international cosmetics companies must comprehend Chinese consumers’ needs and purchasing habits if they hope to successfully market beauty products to this market.

We’ll share some advice with you in this blog article on how to sell makeup and other beauty items in the modern Chinese cosmetics market.

Overview of China’s Beauty Market

China’s cosmetics market had a valuation of 248.4 billion yuan in 2012; by 2021, it had almost doubled. With an annual market growth rate of 13.76%, the market is predicted to be worth  $87.64 billion by 2025.

China’s middle class is expanding, and an increasing number of its consumers are beginning to invest in personal care to look after themselves. China’s beauty market is one of the sectors benefiting most from this trend as younger Chinese netizens desire to spend themselves due to increased disposable incomes and improved living standards.

Tips on How to sell Cosmetic Products in Chinese Beauty Market

In contrast to other markets, China’s beauty market didn’t suffer a significant loss despite the health crisis. Following the COVID-19 pandemic, companies such as L’Oreal have reported a gradual recovery in their sales in China. This could indicate that the cosmetics market is poised for a speedy rebound.

The needs of Chinese consumers are evolving, and they are seeking beauty businesses that can keep up with these changes. As a result, it’s critical to comprehend the needs of Chinese consumers, how they purchase, and what steps a cosmetics company must take to establish itself in the country. 

Understand who your Chinese consumers are

In contrast to the 29% global average, 41% of Chinese customers anticipate increasing their expenditure on health and beauty items, according to a survey. Due to the high level of health consciousness among Chinese consumers and their heavy investment in skincare products, the skincare sector is one of the fastest-growing in the country.

The younger buyers are the primary drivers of the market’s growth. Nearly 40% of the market is made up of those between the ages of 19 and 29, while another 27% is made up of those between the ages of 30 and 39, according to Statista.

Chinese women customers desire to be autonomous and have higher incomes. The largest customer base in China is made up of women. They wish to invest in themselves, have a lot of spending power, and are readily swayed by market trends and digital personalities.

Adapt your products to Asian beauty standards

Because Chinese consumers have different standards of beauty than those in the West, manufacturers must modify their products accordingly. For example, several Chinese corporations have developed items that brighten their skin because the majority of Chinese people want white skin.

In Chinese culture, having exceptionally pale skin is associated with success and attractiveness. Therefore, to elevate the social status of consumer goods like whitening items over sun exposure lotions, cosmetic promotion emphasizes pale complexions.

Furthermore, Chinese people’s skin is inherently “oily,” with big pores and a glossy look. They are searching for goods that suit this kind as a result. Since their skin is typically highly reactive, gentle cosmetics are appropriate.

China’s Beauty Market: Top Tips to Sell Cosmetics

Follow the Latest Market Trends

It is advisable to ascertain which items have the greatest potential in China’s beauty market before venturing into the country.

  • Natural Cosmetics:

Organic skincare has been one of the major trends in recent years. Chinese people began to become more health conscious, particularly during COVID-19. They invest in luxury items, health supplements, and high-quality cosmetics in addition to increasing their exercise and eating a better diet. As a result, natural cosmetics are dominating the industry.

  • Medical Products:

Dermo cosmetics is another significant category of cosmetics that is growing in popularity, appealing to both genders. Chinese consumers are searching for medicinal cosmetics to cure scars and acne because they frequently have skin issues.

  • Anti-aging Creams and Lotions:

The Chinese industry is fascinating since younger generations, who adhere to the maxim “the earlier you begin, the better,” are the biggest consumers of anti-aging cosmetics. among the most anticipated areas of products in China’s beauty market is anti-aging creams.

  • Baby Skincare:

Chinese parents strive to provide their children with the greatest care possible, but they are also extremely careful. Chinese parents tend to prefer international brands over local ones especially when it pertains to baby skincare, thus international corporations and skincare brands that sell baby products stand a good chance in this market.

Focus on your digital strategy

The Chinese market is being reshaped by younger generations. Instead of seeing the things, trying them out, and then deciding to buy them on Tmall, Xiaohongshu, and WeChat, they would rather buy products online and visit physical stores.

A lot of senior people also developed an internet shopping habit as a result of the pandemic and continuous lockdowns. fifty percent of the beauty goods sold in the Chinese market during the past two years were bought online, and this trend is expected to continue in the years to come.

As a result, all international businesses need to have a digital identity in China. A cosmetics company should first launch a Chinese website that is housed in the territory of China. It’s important to keep in mind that websites available in China serve as tools for building your online reputation, legitimacy, and branding rather than for making sales.

Sell through Chinese e-commerce platforms

In China, the significance of Internet commerce is growing daily. An increasing number of consumers are turning away from physical storefronts and instead making purchases on e-commerce sites; the most significant ones for China’s beauty market are Tmall, JD, Taobao, and Xiaohongshu.

The largest marketplaces are the most visible and expansive, but they come at a high cost. Establishing brand recognition and recognition is crucial in the Chinese products business, as buyers of beauty goods never purchase unknown brands. Furthermore, such platforms only like to feature companies that are well-known in China.

Due to the initial high cost of entry, using those platforms may be difficult for smaller and specialized firms.

Sell through private traffic

Sales through private traffic are another intriguing development that we have noticed recently. Millions of brands are vying for the attention of Chinese consumers. And they have a wide range of options at their disposal. They may therefore be choosy. They enjoy personalized products, unique experiences, and one-on-one attention.

Collective sales, or “exclusive volume sales,” are growing in popularity, particularly on WeChat. Cosmetics companies can get in touch with their clients directly and invite them to join exclusive groups where they can receive exclusive deals and discounts. Additionally, some businesses offer particular products that are only available to specific clients.

Pay attention to communication with consumers

Chinese customers have very high standards. For them, a high-quality product and excellent service are insufficient; they also want to engage with the brand. Brands have the chance to engage with their clientele and win their loyalty using social networking channels and influential voices.

Gaining clients in China requires providing excellent customer service, tailored messages, and an excellent user experience.

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