SHANGHAI, March 24, 2023 (Archyde.com) /PRNewswire/ – S’Young International (“S’Young”, “the Company”), the initiator of the CP (China Partner) cooperation model, an open, digitally driven platform for global beauty brands to enter the Chinese market, held an exclusive on March 17 Cosmetics Forum held at Palazzo Gnudi in Bologna, Italy, attended by Tmall Global, China’s largest cross-border online marketplace, and Pier Augé, an innovator of beauty products for sensitive skin, to discuss the reality of China’s beauty market in the post-pandemic era . At the event, Marshall Chen, CEO and Co-Founder of S’Young International, shared his insights on the DON’Ts and DOs that are helping global beauty brands meet the challenges and reap the benefits of the changing Chinese market.
As China eased its Covid-19 prevention measures, the Chinese beauty market has shown greater potential for growth. The data shows that the per capita consumption of beauty products in China can be five times higher. However, Marshall also cautioned that despite its many opportunities, China’s booming beauty market also has its challenges. Marshall addressed the challenges and identified three key DON’Ts to help brands avoid potential pitfalls:
- DON’T UNDERESTIMATE THE COMPETITION
- DO NOT MIX DIFFERENT CONSUMERS
- DON’T SIMPLY COPY PREVIOUS SUCCESSES
The current Chinese beauty market can be roughly divided into three categories: Chinese domestic brands, well-known international brands and niche international brands. Competition between the first two categories is fierce, while niche brands often enter the market by targeting specific market segments to avoid intense competition. To penetrate these specific market segments, brands must focus on building their brand image for a more targeted audience. The urban structure of China ranges from first to eight tier cities and is influenced by different distribution channels and marketing conditions. In order to develop a brand efficiently, it is important to differentiate the marketing strategies according to the city level. Compared to overseas markets, the Chinese beauty industry has a higher percentage of e-commerce channels and relies heavily on social media and short video marketing. It is also important to consider the different beauty requirements of Asian ethnicities, which requires differentiation from overseas market strategies.
How can brands survive in the current conditions of China’s beauty market and achieve long-term success in such a complicated market with promising prospects and multiple challenges? Marshall responded to this question with three key DOs:
- START WITH WISHES
- DO BRANDING
- BUILD A BRAND LIKE RAISING A CHILD
“Given the complexity of the beauty market in China, brands must recognize not only the explicit needs of customers, but also their underlying desires in order to offer innovative products that meet their individual requirements. For example, a traditional foundation or skin lightening product can only meet the basic needs of Chinese consumers, while products such as drinkable skin-lightening supplements from a Spanish cosmetics brand and a long-lasting foundation with Milanese fashion DNA can provide additional benefits that cater to their deeper needs,” said Marshall.
He also highlighted the importance of branding in the current scenario, emphasizing that beauty brands need to explore their brand power, historical roots and cultural identity. This is crucial to develop a distinctive and appealing brand image that resonates with customers and stands out from competitors in the highly competitive and crowded beauty industry in China. In addition, in order to holistically build a successful brand, it is essential to integrate product development, marketing strategies, efficient operations and logistics management for both online and offline sales at home and abroad.
At the event, Kristina Hui, Head of Beauty UK & Nordics at Tmall Global, introduced the rapid digital development of China’s retail landscape in recent years. She also pointed out that the changes brought about by the pandemic have prompted the platform to look for new solutions to connect and engage with customers.
Charles Dupont, CEO of Pier Augé, explained the importance of choosing the right partner in China that can help global brands achieve sustainable growth over the long term. In 2022, Pier Augé and S’Young have agreed on a strategic cooperation. Under the CP collaboration model, leveraging S’Young’s expertise in the Chinese market, sales of Pier Augé’s flagship product, Douce Aura, grew a whopping 259% year over year. Pier Augé’s popularity with Chinese customers then skyrocketed and sales quadrupled within 12 months.
“As the initiator of the CP cooperation model, S’Young has partnered with over 30 international brands to provide them with market knowledge and key tools to overcome challenges and achieve sustainable growth in China. Our all-encompassing solutions include brand positioning, unique communication strategies , Marketing, Retail and Supply Chain Management. We work with our partners to clarify their primary goals and design action plans for each development phase that enable them to create heroic products and build robust omnichannel capabilities. To achieve this, we work We work closely with our partners to ensure their brand success in China, just like raising a child through close collaboration,” said Marshall.
About S’Young International
S’Young International, the initiator of the CP collaboration model, is an open, digitally-driven platform that enables global beauty brands to enter and connect with the Chinese market by offering a one-stop solution focused on developing concentrated in all dimensions, across all channels and the entire life cycle. S’Young International has now worked with more than 30 beauty brands around the world.
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