For cosmetics brands wishing to enter the Chinese market’s first question should always be: What do I need to sell cosmetics in China and what are my options to sell my beauty goods there? Should you register your cosmetics brands in China and get a business license before? Well, the answer is, not necessary and cross-border eCommerce is to thank for this. In this article, we will let you know more about China’s cross-border eCommerce and how it allows you to start selling cosmetics in China without a business license.
China is the largest market for cross-border e-commerce.
The same goes for the domestic e-commerce channel in Tmall, where the priority of searching results is getting luxury beauty brands. Beauty brands are also increasing the sophistication of their WeChat accounts with a growing focus on commerce-enabled Mini Programs. Brands are adopting innovative promotions with young pop idols and brand ambassadors to reach China’s millennial and Gen Z consumers.
Intelligent development is driven by these young shoppers, and technological advancements such as AI and Virtual Reality are changing the buyer’s experience. The Chinese cosmetics industry is one of the most promising areas of business in China in the near future. Consumer demography is moving towards a younger segment with an increased sense of luxuries, such as beauty and care products.
China’s fast-growing, developing beauty market represents opportunities for brands to increase their exposure
During the past five years, China has been one of the world’s fastest-growing cosmetics markets (source).
According to Euromonitor data, China’s market for cosmetics grew from RMB 24.3 billion in 2014 to over RMB 42.8 billion in 2018. Its annual growth has risen from 9.7% in 2015 to 21.7% in 2018. (source)
Kantar Worldpanel China summarizes three key factors amongst the most-chosen brands which has enabled them to achieve strong growth while maintaining their current market dominance:
- Innovation: Continuously innovating new products with new concepts and technologies to improve product efficacy
- Upgrading: Consistently upgrading the products and brand image in response to the market trend
- Young-Oriented: Leveraging online and offline channels to create hugely popular items and help brands appeal more to younger consumers
- China’s beauty market is fast emerging and holds multiple ways to achieve growth.
Kantar Worldpanel China has identified three key factors for brands to win in such a promising but challenging market environment:
- Demonstrate Expertise: Leverage resources to build strong products and expert image, and adopt ingredient-level communication to gain trust
- Invest in social media: Form a strong presence in multi-media channels, especially social media, to break the limitations of traditional channels and reach more consumers
- Disruptive speed: Reacting fast to the latest trends by accelerating the speed of launching new products to meet consumers’ constantly evolving needs
Our Mission for you: China cross-border e-Commerce & Marketing solution
The growth of the cosmetic industry is undoubtedly the opportunity of the century for cosmetic brands that want to enter China. China’s cosmetics sector has been growing at a fast pace in recent years, in tandem with the rapid development of the economy.
However, be careful! It is not easy to adapt your products to this market, as the Chinese have different makeup habits and needs. It is difficult if you try to have great visibility in Chinese social networks and e-commerce platforms on your own because if you are not educated enough in China’s market and their mentality. European style doesn’t work here. Just to let you know, great visibility can be acquired thanks to a proper digital marketing strategy and the use of KOLs for example.
But because we understand Chinese culture, we have a solution for your brand.
If you want to expand your beauty sales to China, collaborating with a team of knowledgeable marketers who know the digital landscape can be helpful. The Gentleman Marketing Agency can help craft the best strategy to drive traffic to your online store — whether it’s creating a WeChat Mini Program, running a social marketing campaign, or getting your brand connected with the right key opinion leaders (KOLs).
Because beauty and skincare account for a huge percentage of Chinese e-commerce sales, establishing cross-border e-commerce in China can transform your business and fuel rapid growth. Contact GMA and get started today!
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You can also read our full guide on the Top Marketing Strategies to Succeed in the Beauty Market
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