The transaction of online purchasing of cosmetics productwas reached to 8.35billion RMB in April 2014, which included B2C 3.09billion RMB with 37% and C2C 5.26billion RMB with 63% of the total transaction.As we can from the pie 2ndabove, 3 giants-Tmall, Jumei and JD were occupied 83.3% of cosmetics market on E- commerce platform with 1.34, 0.56 and 0.26 billion respectively.
Generally, the cosmetics products range from 50-100 RMB hada big percentage of sales numbers, which was about 60% of total sales volume. However, high- ends products above 300 RMB makes profit of cosmetics market on E- commerce platform. For instance, fragrance products like perfume weren’t the best-sellingproducts in the cosmetics market (2.3% of total sales volume).
However it was contributed nearly 10 million of revenue and which equals to hair product (10 million of sales revenue in April. See pie No.4 below) but it needed to sell more pieces of hair products in one month.
Skin care products were the most popular selling products which have been shown in both sales number and sales revenue.
From the sales volume perspective, about 17.5 million of skin care products were sold in just April, which was made up to 62% of total sale volume.The total selling number of other cosmetics products like make up, hair care, fragrances and others were only 38% of the total sales number.
On the other hand, the sales revenue of skin care product was 1.77 billion RMB With 68.3% of the total marketrevenue,followed by beauty and make up products (21.3%), hair care products (4.3%), fragrance products (4.1%) and other cosmetics related product with 2% of total revenue.
Why skin care products are always welcome by the online shopping lovers?
Firstly, the best selling products were face masque and lotion at 81.9Rmb and 133.6Rmb for each respectively
which was reasonable and acceptable for customers. The most important of all, the price was normally cheaper than physical stores.
Secondly, there was not very much of a difference of buying skin products online and shopping at physical store. Compared with skin products from physical store, products online have the same quality and function of product which makes it has more competitive advantages on E-commerce.
As we can see from the chats above, face wash, facial cream and packaging products had the best sales revenue in April. Particularly for facial products are all time favorite for the customers
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