With parent companies like Nestle and Wahaha present in today’s world of commerce. The act of entering social e-commerce and launching new sub-brands is something we have seen before. It is expected of such large and successful companies to dip their toes into other avenues of business. This time, Coca-Cola is branching out into a new venture.
Since 2016, Coca-Cola has been setting foot into different fields. With its “full category strategy” and its success has shown through market growth. Coca-Cola created a new y-aminobutyric acid collagen peptide plant-based drink.
Beauty & Food health market on the rise in China
Two major areas where the industry giants choose to enter the social e-commerce market are “meal replacement” and “cosmetics and food from the same origins”. These areas can be associated with a progressive and healthy lifestyle. People always seem to be looking for new ways to be healthy.
Of course, when entering an unfamiliar market, it is essential to do the proper research and development. For instance, Coca Cola’s new product, “Exclusive 28 Sleep Awakening Face” was developed because a problem was identified. Once the problem was identified, the company developed a feasible solution.
What is the relation between food and beauty and Health?
The problem that Coca-Cola addressed here is: sleep quality has a correlation to skin quality. this product is a solution for those who stay up late and do not get enough sleep. Many of those late-night sleepers, prefer to take a balanced diet and health care products as their preferred conditioning method. This brings opportunities to the “cosmetics and food from the same origins”. This product has the potential to meet the demands of many people, as it not only adjusts sleep but also helps with beauty. The micro scenes created meet the demands of the female target consumer group.
Beauty & Health Food: Huge market to dig in in China
Overview of the beauty edibles in China
China has around 400 million female consumers between the ages of 20 and 60. This group of people controls up to 10 trillion yuan in consumer spending each year, which almost constitutes the third-largest consumer market in the world. Women’s consumption has entered a stage of paying attention to and allocating funds for beauty and health as a part of their daily life. In the past two years, skincare and other beauty categories have driven trillion-level consumption growth.
Notably, the consumption growth rate of edible beauty products in the past year is much higher than the average growth rate of other categories. In turn, the size of the edible beauty products market increased by 3.1 billion yuan from 2013 to 2015 in China. It is quite apparent that a massive market for edible beauty products is forming.
Chinese consumers prefer foreign brands when it comes to Health
The main two core kinds of players in the edible beauty industry in China are leading beauty brands and traditional healthcare brands, along with some new food brands. Shiseido, FANCL, Sephora, Nordstrom, and other beauty brands have all launched edible beauty products, as well as many healthcare brands like POLA, HABA, and Swisse.
Of all producers of these edible beauty products, foreign brands still dominate the industry in China. However, many Chinese brands have emerged due to the evolving culture of beauty. These emerging brands have great potential for growth in the future and can add diversity to the supply side of the edible beauty product industry.
Accurately targeting micro-demands tapping into micro-scenes or functional associations are ways in which companies have been able to enter this evolving and emerging market.
Becoming a leader of the Beauty & Health food industry in China.
The moment you think about supplementing your diet with the right nutrients, which not only can help you achieve healthier bones, joints, and skin but can also help, you reach your goals faster.
Moreover, the moment you decide to start looking for a product, which fits your needs. You always look for a brand that will not only offer a simple product. People are always looking for a brand that can offer value, qualities, and benefits.
A brand that is clear on its mission, which complies with the needs that you have and will accompany you through the process of acquiring the desired result. All of this can be achieved by creating visual assets, letting your brand speak for you.
However, creating a Brand with all these qualities is not easy. Even harder in the biggest consumer market in the world.
Branding is Key the Beauty & Health food Chinese Market
No matter how popular a brand is outside China, but to the Chinese audience only what is visible on the Chinese digital platform is known. In B2B lead generation, more trust and visibility is needed.
In China, consumers look for new and trustworthy Food and Beverages brands. Firstly, consumers must be told about the benefits of the product, and the Intellectual property rights must be availed, protect one brand from counterfeit products. Several well-known brands want to convey friendly messages to attract Chinese consumers but sometimes end up offending Chinese consumers due to a lack of knowledge about Chinese culture. Therefore, It is extremely important to understand the local culture in China and conduct branding accordingly.
Social media in China for optimizing your market presence
IN GMA you can find expert support in helping foreign companies to establish or strengthen their position in China by using local social media such as Xiaohongshu, Kuaishou. with over 800 million Chinese internet users, using this social media is a very rich and diverse way to find your place in the market. this offers real value with the interactivity and positive impressions on your target.
Commerce is more utilized in China than in other markets, this is mainly due to the nation’s strong digital infrastructure. Chinese consumers prefer to buy products online more for convenience than price. Chinese customers are extremely tech-savvy and use mobile technology to increase their functionality. Consumers in China appreciate new technologies and show the early adoption of new products.
Xiao Hong Shu (小红书) Little Red Book
In brief, Little Red Book (小红书), which can be translated as “little red book” in Chinese, is a social e-commerce shopping app based in Shanghai, China. Targeting an 18-to-35-year-old Chinese urban female, the platform helps users discover and buy luxury, fashion, and beauty products from overseas, share shopping tips and swap fashion ideas.
Little Red Book was originally designed as a UGC (user-generated content) social sharing platform; targeting young, urban (esp. in large cities like Beijing and Shanghai) female’s unmet desire of discovering and sharing shopping lists and experiences while traveling outside China.
Key Opinion Leaders
The modernization of our era created a shift in marketing, which led to new ways of digital advertisement that are adapted to our digital age. One of the main ones to have emerged is the use of KOL or Key Opinion Leaders. With the importance of social media in our society, the KOL are a perfect way to connect your brand quickly to a large audience. This technique is particularly efficient in China because they will be more likely to trust someone they admire rather than advertising.
Kuaishou: Leader of live streaming ecommerce
Kuaishou, as one of the most famous short video apps in China, has 300 million daily active users, and 80% of users are born after 1990, among which the average of using time can achieve more than 60 minutes per person per day. Moreover, 19 million people have earned income from Kuaishou. In the user distribution, users in first-tier cities only account for 10%, while users in second and third-tier cities are the main users of Kuaishou.
eCommerce Live streaming: Kuaishou vs Douyin
- Kuaishou Daily Active Users reached 300 million & Douyin has 400 million
- Kuaishou has 3 to 5 times higher e-commerce conversion rates compared to Douyin
- Kuaishou’s is more social-driven – Douyin focuses more on algorithmic recommendations
- Kuaishou is less popular for brands to advertise on, more opportunities for you.
- Kuaishou is working hard on developing on strongly integrated eCommerce section
WHY YOU NEED TO CHOOSE GMA AS PARTNER IN CHINA
- A team of 70 digital marketing specialists in China
- With a deep knowledge of the Chinese lifestyle
- A passionate Franco-Chinese team
- Professionals who support companies in their development in China
Helping you is our mission, we are here to show you the right paths to follow and what not to be overlooked. Call us to discuss your project, we will be happy to answer you!