E-commerce around the world is at its sweetest moment and the cosmetics and beauty sector is booming in Asia and even more so in China.
China, the growth engine of the cosmetics and beauty industry in Asia
China is the second country in the world in the cosmetics sector, behind the United States, although the trend is China will surpass US by 2020.
In 2016, the total revenues of the sector reached US$35.4B with an annual growth rate of more than 10%.
88% of Chinese women between 20- to 30-year-old make-up every day, and 63% of Chinese men use beauty products on occasion. These data confirm the importance of the cosmetics and beauty products sector in the Chinese market.
77% of online sales are made in tier 1 and 2 cities
The online channel, the key to success in Asia
The biggest trend observed in the online channel is the rising interest of the Influencers or KOLs (Key Opinion Leaders).
This is shown with the following data:
- More than 37% of the buyers, know new products through the influencers in online channels.
- The cost of an influencer for every 1000 visits is between US$ 5 and US$ 10.
- 75% of companies use (or want to use) influencers’ marketing as part of their strategy.
In this way we can confirm the importance that the Influencers have acquired in this sector.
60% of the total sales are made by foreign companies, which counts of 90% of the total revenues.
There is clear trend in the online purchase process, so it is important and very interesting to have an eCommerce strategy adapted to the new ways of buying from Chinese customers.
At TLG Commerce we are specialists in the creation of online strategies for the Asian market. Ask us to know more details. We can help you in your project!