An anti-wrinkle skin worth more than having a brand new Louis Vuitton bag?A rather unsettling question for some people, but not for the new generation of chinese women where the only answer is yes.
China is becoming the largest consumer of anti-aging creams, especially among the youngest, who spend about 20/40 percent of their annual salary in luxury cosmetics.
One of these is Fan Fan, twenty-five years old and manager of HR,who tells that for her first anti-aging purchase,the Advanced Night Repair serum from Estee Lauder,spent half of her 4,000 RMB salary. Fan Fan is aware that it’s quite expensive, but she also believes that prevention is better than cure. “The earlier you start taking care of your skin, the less worried you will be when you grow old,” she said. “I’m in this for the long haul.”
It seems that for young chinese woman it’s not just a simple skin routine, but a real investment. So much so that if in the Western world, according to Mintel, sales have dropped from $ 2.2 billion to 1.9 billion dollars in just 5 years, China instead has swum against the tide.
Those who overturned the statistics were women between 20 and 29 years, who spent 2.6 times more than the previous year .They spent more even compared to the mature women with a greater economic availability who instead believe less to the miracles of the anti-age creams. The data ,collected by Kantar, shows how the very young spend less on luxury bags otherwise are more inclined in serums and creams business of important brands like Estee Lauder and SK-II, just to name a few.
In 2017 Estee Lauder, saw a 40% growth due to the large sales made only in China. A great success for the French brand and for China itself, which has become Estée Lauder’s third-largest online market. An achievement that, according to the company, is mainly due to the distribution through Tmall, a Chinese online retail (B2C). The same platform was also the intermediary for the most luxurious line of Estee Lauder, LaMer, that could reach those cities where there’s no physical store.
“The main purpose of selling on Tmall is to discover an interactive approach to speak to young consumers,” Estée Lauder’s head of e-commerce.
Another strong point for the sharp growth in the sale of cosmetics? The use of brand ambassadors who have approached the young millenials all over China. The SK-II brand has boosted its sales through Dou Jingtong, in fact with its unconventional look, the post-90s singer has gathered acclaim and convinced young people to employ their money in a special facial treatment.
A winning strategy given by the fact that among the millennial co-exist a double soul; they try to be out of the box, see Jingtong’s eclectic and influential look, but at the same time they still believe in some past concepts, as evidenced by the use of anti-aging creams since young age to never get old and always look young.
How can I sell my Brand to Chinese?
Companies need to know which strategy is the most appropriate,which platforms can give best results in order to reach their target persona. Two essential points to follow, for the sale in China are BRANDING and EREPUTATION .
Find Distributor, a big challenge
Sometimes it is difficult to find quality distributors when you do not yet have a high profile and high visibility. In China, branding is of paramount importance and this is what will determine whether consumers will buy the product or not. The solution for having a better brand image is found in online promotion.
The ereputation develops gradually, it is necessary to have a Chinese site available on Baidu, and to share contents in forums like Baidu Search, Zhihu and Baidu Tieba.
Don’t know where to start ?
We are a Digital Marketing Agency based in Shanghai and we are specialized in online reputation and branding , focused on Chinese digital growth.Feel free to contact us if you want to develop a market for your product or service in China.
Brands’ branding in China is worked a lot and marketing is key to sell your product there. Any brand could sell its skincare or beauty product, even if it’s a new brand.
Working on your reputation, being visible, … Established brands as Estée Lauder are great examples for little brands to begin in this market. Not at the same scale of course, but in the idea of success.