Jumei is supposed to be the one and only online mall of « real brand » cosmetics with limited discount. Chen Ou, CEO of the Jumei says that « Daily, the website makes at least 2.3 million € since it has been created ».
Why did Jumei succeeded in China ?
Jumei has become a real expert in the cosmetics e-business in China
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How can we see that ? Well, the brand has 3 very good aspects that everyone should get inspire from.
Firstly, one of the attractive feature of the website is its very good positioning. 2 years ago, the cosmetics market started to prosper at an incredible speed. Now it is one of the most profitable market in China. Ou Chen is one of the pioneer on this virtual market and contribute to its development.
Compare to its competitors, the policy of the best price or the one of having a large range of product doesn’t occur. This decision is very clever, relevant and efficient
We can see an important rise of young Chinese lady asking for more and more cosmetics these days. Hopefully they have the means to pay International product and buy a necessary amount to put the industry in a good place. Moreover, they still want to pay less online than they usually do in shopping mall. The only factor changing from site to site is the place on the market, the price used and the coverage it has. In two years, Jumei defeated all its competitors in the market thanks to its perfect marketing strategy.
Jumei provide a better service experience.
Nevertheless, the positioning of the brand is not the only factor of success. To provide enough visibility and increase its reputation, Jumei value the website and the after-sales service. The brand maximize its website to allow the customer to have a special experience when it comes to do online shopping. For example, the site have on its welcoming page a link toward SNS account and also product discount which are very clear to the Chinese potential customer.
The product introduction on Jumei is very well-defined as well. You can easily find the two most important thing for the Chinese customer when it comes to buying cosmetics online : discount and brand.
A very unique thing is that Jumei shows which product has been bought earlier in the day on the bottom of the page. This fact will hopefully bring a feeling of regret upon the customer and drive them to buy faster next time. The website have as well a entire page dedicated to price reduction. On this page, you can see all the information about discount and brand name easily even if the product information is non existent. In any case, for Chinese, the price is more important than the description of the product.
Jumei also have a page devoted to customer feelings and comments. They can share their experience with product on this special page. Because the Chinese girls believe and trust other girls’ comments and pictures, this page is very important when it comes to the e-reputation of brands. Therefore, the interplay is quiet high.
The best factor of Jumei’s success
To stand out from its competitors, Jumei claims to offer to its customers several things including a low supply and a reassuring after-sales services thanks to a very good e-reputation
Jumei brought only 20% of best-selling cosmetic products and their origins are guaranteed by suppliers or directly by the brand. Fake doesn’t have it place on the website… After two years of significant growth, Jumei now turns to cooperation with major brands such as L’Oreal and Nivea. It is becoming the first reference of online cosmetic in China.
For example, L’Oréal Paris has launched its official online store on Jumei after their first store on Tmall (Taobao Mall) about 2 years from now and on the first day, « L’Oréal achieved a turnover of over 1.7 million € » said the Chairman or the country, Chen Ou. This victory stimulates other brands such as Olay, Estee Wash, NIVEA, Lancome, etc. to install themselves in Taobao and Jumei and try to conquer the cosmetic e-commerce in China.
To increase customer’s trust, Jumei offers a 300% warranty and 30 days unconditional return and those terms are even valid after opening the product. This allows clients to buy any product they want and return them even if they don’t have a real reason to complain about the product. This is the first and only online sales website to do that things in the Chinese e-commerce. Fortunately, Jumei efforts for a better user experience were not wasted and were well paid. At the end of 2012, the monthly turnover of Jumei reached 14 million €, placing it at the top of the list of all B2C online stores.
Nevertheless, many brands are facing problems of IWOM (word of mouth on the internet). Bad comments or complains of users, competitors and journalists are the nightmare of everyone, especially for cosmetic brands whose sales depend largely on the reputation they have. However, to create a solid image for brands, it needs a certain budget and a lot of time. Therefore, Jumeise a good example of a successful e-reputation business. Instead of paying a star Jumei took their CEO as a brand ambassador. This way, they have saved millions in advertising.
In this video, Chen Or, the boss of Jumei is branded as a young man who is not afraid of failure or making himself ridiculous. However, it’s not the spirit that needs a cosmetics brand, it can still help to gain of young Chinese’s trust and simply advertising what they like and respect toward a strong and unique personality. Let’s not forget that reliability is what Jumei craves for.
As we’ve seen, Jumei seems to have put a lot of effort in the management of its community. Fortunately, it has paid off and they have 834,707 fans on their Weibo business account which they answer every single question of. In addition, they seem to have good relations with the press. Each week you can find article about Jumei on important sites such as Sina, Sohu or even Tencent news.