#Cosmetics

2020 – Dermo-cosmetic brands are developing rapidly in China

Last modified: May 7, 2020

Overview of the Chinese Skincare market in China

The cosmetics industry is growing rapidly in China and is among the most important sectors in the country

The annual growth rate of revenues from sales of dermo-cosmetic products is approximately 15% compared to the previous year.

This significant increase is due to:

  • New trends in skincare routines imported from Korea and Japan
  • Better understanding of Cosmetics and growing interest for cosmetic related content and products.
  • An increase in demands for high-end qualitative products

Below are some exemples of rapidly growing cosmetics and skincare brands in China


PIERRE FABRE: PIONEERS IN DERMO-COSMETICS

Pierre Fabre offers innovative solutions for skin and hair care based on an intangible principle: anchoring beauty in ethics.

Backed by a pharmaceutical laboratory, they design dermo-cosmetic treatments according to the most demanding efficiency and safety criteria.

The group is No. 1 in Europe and No. 2 worldwide in the dermo-cosmetic market with a turnover of more than a billion euros across 130 countries and a portfolio of 10 complementary brands.

They exclusively sell organic products, based on a wide range of flowers and plants. The Pierre Fabre group has two flagship brands in China; “Rene Furterer” and “Klorane“.

Klorane & René Furterer: international quality brands

Rene Furturer responds to the high-end haircare market

An inexhaustible source of plant-based active ingredients, nature has always been at the origin of the great discoveries of Pierre Fabre Laboratories.
The pioneering spirit that has animated Pierre Fabre for more than 50 years is illustrated by a responsible development approach aimed at enhancing and preserving the plant world while using chemistry to develop well-formulated products.

Klorane

Klorane is associated with a range of quality family cosmetics. Klorane Laboratories carefully select worldwide the most suitable plant species and extract the richest active ingredients to provide health and beauty to hair.


DERMO-COSMETIC BRANDS IN CHINA

Such brands have a strong international reputation for quality. “International” products from the Chinese consumer’s point of view generally is linked to quality. Chinese made products, however, are associated with counterfeit products and substandard cosmetics.
As the wealth levels of Chinese consumers rise, so do the standards and expectations. 80% of the cosmetics products sold on the Chinese market belong to foreign brands and groups.

Quality focused on Health

China, with its 350 million middle-class consumers, is the largest country for cosmetics.
The Pierre Fabre Group has identified a strong demand for its high-quality and high-end cosmetic products and has since made China a priority.
They want to bring their passion to the Chinese market by promoting their values ​​of quality, authenticity and health awareness.

PHARMACEUTICAL ETHICS IN CHINA

Although the group is selling in China and has to follow locals hygiene and safety requirements, it had kept its respect for pharmaceutical rigor and ethics, botanical know-how, authenticity, and a strong commitment to protect the heritage and values ​​for its brands.

Fabre brands sold in China still hold the European quality label EFQM (European Foundation for Quality Management). This label is for consumers a sign a safe to use products and sets the group apart from its competitors.

EASY VISIBILITY FOR NEW DERMO-COSMETIC BRANDS

Chinese consumers are very demanding. They won’t purchase anything if they have not searched it online beforehand. The easiest way to find information about a brand or a product is internet forums, social media, and other PR.

Without a digital presence, it would have been difficult for Klorane and Rene Furturer to find a buyers base in China. As of today, Klorane has its own Tmall store while Rene Furturer is sold by many accounts on Tmall Global.

Both brands are actives on social media eCommerce platform Little Red Book as well as Weibo.

DIGITAL MARKETING: FINDING THE RIGHT LOCAL PARTNER

They have chosen to work with our agency to develop their digital marketing strategy in China for increased growth. You can find out more here: Klorane & Rene Furterer

We’ve worked on improving the brand’s eCommerce sales on Tmall store (B2C) and raising awareness of the two brands on the most effective and targeted platforms.

INCREASE CR ON CHINESE E-COMMERCE PLATFORMS

In order to boost the brands’ conversion rate on eCommerce platforms we came up with a plan: Increase their e-reputation in China. Not only we helped Klorane and Rene Furterer with the launch of their Tmall (B2C) and Taobao (C2C) stores, we also did market research and worked on the brands’ social media and internet reputation. This was paired with in-depth reporting on performance and sales statistics. Quality analytical data is most important to ensure accurate feedback on sales and marketing.


CHINESE SOCIAL MEDIA TO BOOST E-REPUTATION

Because Social Medias are so widely used in China it is almost impossible not to use incorporate at least one of them in your marketing strategy. Let’s be honest, if you want to look legit, gain in visibility and popularity, social media are one efficient way to achieve this.

The Social media landscape changes every year with newcomers and new trends. The growing trend is Short Videos and Live streaming. Douyin, Kuaishou, Wechat, Weibo, little red book… they all launched their own version of live streaming.

For the Klorane and Rene Furterer campaigns, we decided to use Weibo (similar to Twitter) was the subject. The platform is perfect for commercial content and buzz marketing.

Weibo is a very open network, users can see anyone’s messages, and it still has 250 million active users. When you compare it to the very close and intimate environment of Wechat, you quickly understand the commercial value of Weibo. The app also work with Alibaba making it ultra-easy to use hyperlink and send visitors from your Weibo account to your Tmall/Taobao store.

At the time, the two brands were mostly unknown in China, however, Kols were already big things. The idea behind the Weibo campaign was to create interest from influencers, gain more visibility and credibility in the Chinese market.

Conclusion on the Pierre Fabre Case Study

The two brands significantly increased their profile among Chinese as a result of the campaign. Klorane got 50,000 new followers on Weibo and 1.5 million page views. Rene Furterer attracted 60,000 new followers to their Weibo and got 2.1 million page views. 100 influential people approached the brands to represent them, building the foundations for a better and more focused community strategy in the future that is still lasting to this day.

The business plan on Tmall resulted in increased sales and better market performance. Pierre Fabre’s managing director, Mr. Ducournau, said the company would take steps to adapt to the changing environment.

“We pay special attention to China’s economic development and the pace of growth of the Chinese economy,” he said.

About GMA

How to sell cosmetics online to customers in China | digital marketing in China

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