In today’s China, young people born after 1995 have become the main force of consumption. The shopping mindset of consumers has changed a lot. Many people like to shop on live streaming e-commerce, and their concept is “if I don’t buy the discounted goods, then I am losing money”.
China is entering a new era of consumption.
New development opportunities for beauty brands in China
In 2019, a great number of China-made beauty brands rose to prominence. “The perfect diary” became the make-up sales champion of T-mall’s double 11 shopping festival. It was followed by Estee Lauder, Lancome, and other well-known international brands.
“The new era of consumption is reshaping consumers, goods, and markets, which drives unprecedented changes in the digital nature of commerce,” an Alibaba spokesman said.
In this context, if we can better understand the changes in brand strategy and marketing restructuring, we can take the lead in the new era of consumption.
The buying behaviour of young consumers in China
China’s youth are being driven by consumerism. Many people like to express their identity and opinions through what they buy. Consumption, is the power of work, the source of satisfaction.
China has become the world’s largest consumer market: retail sales of consumer goods in China surpassed those in the United States for the first time in 2019. Young people in China are constantly improving this figure, they are eager to get spiritual, taste, aesthetic and other added value through shopping.
Along with this comes anxiety about appearance among young people. Millennials can feel the pressure of looks before they turn 18. Job seekers also rated looks as the next most important factor after work experience and education.
And this kind of anxiety, causes the Chinese beauty makeup market to be younger and younger. Men and the sinking market also play an important role in this market.
The marketing strategy and challenges for beauty brands
The rise of beauty brands is actually the art of marketing. The effect of the product is easy to be visualized and quickly presented. The direct comparison between before and after makeup can directly affect consumers’ purchasing decisions. The easiest way to achieve this effect is through short video marketing and live streaming marketing.
At the same time, these beauty brands are also trying to build recognition. In addition to building signature products, these brands are also expanding their influence through cross-border marketing strategy in China.
But the rapid popularity of beauty brands has left many questions unanswered. Repurchase rates are low, growth is slow, and customer loyalty is hard to maintain. How to develop and build their loyal customer base in the long run is the next question for these brands to think about.