Research company L2 has released a report that reveals Chinese consumers are shopping more and more online with makeup sales in the traditionally skincare dominated region beginning to rise. It also suggests China is poised to become the largest beauty market in the world by 2020.
These combined factors show there is an opportunity for beauty brands to leverage digital assets in order to access Chinese consumers online.
L2 head of Asia-Pacific research Danielle Bailey told WWD that figures related to online penetration for beauty in China over the last three to five years have grow significantly. She said that consumers prefer to shop for beauty on e-tailer platforms such as Tmall and JD that offer a broad selection of products and multiple brands.
Bailey went on to explain many beauty brands these days are focusing more on e-tail rather than their own branded sites using Benefit Cosmetics and Vichy as examples. There's also high acquisition costs in the direct-to-consumer market that Bailey said has also prompted a movement towards e-tail. Brands like Anna Sui, Kiehl’s, Sisley and even Sephora have launched on Tmall, while Make Up For Ever, Burberry, Origins, La Mer and others have launched on JD.com.
Estée Lauder chief executive officer Fabrizio Freda has echoed the sentiment by calling out China as a particular success for the business' second fiscal quarter. Bailey named Lauder's Advanced Night Repair as a very popular product with Chinese consumers who have a demand for higher priced goods.
