Overview of best practices for cosmetics in China
The cosmetics products are a big family who consists of numerous types such as skincare products, makeup, care of hair, perfume, sun cream, deodorant…In China, as a result of the habit of consume, the cosmetics represent usually the skincare products, who occupies more than 40% of the cosmetics market.
With the process of urbanization and the increase the per capita income, people have a higher standard for the live, it’s normal that China has a great growth rate, almost 15%, during 2013 in the marketing for cosmetics. But what we should notice is the 90% of the Chinese cosmetics market is monopolized by the foreign brand, especially the French and the American brand. Therefore the local company for cosmetics has a lot of competitions as well as a great development space.
The No.1 in marketing for cosmetics in China is l’Oréal. It comes into China for a long time and attire a variety of consummers by his great quality and different products of different segmentations. L’Oréal has the products with very different positions, from the luxury as HR, Lancôme, until to the entry-level as Garnier, l’Oréal Paris. It has different marketing strategies for the different positions in the field of 4 P (price, product, promotion, place); for example, Lancôme is a brand of top grade with a high price, it is sold only in the big shopping center and the official web site and the special e-commerce site in cosmetics, and gives consumers a representation of loyalty and gôut, in addition, even if Lancôme entered China since 1993, it has no chinese spokesperson, all of its spokespersons are the western stars who are popular in the whole world. Instead, l’oreal paris is a public brand of large distribution in the supermarket who focuses on the public.
see their website : lorealparis.com.cn
Honestly, chinese brands have a great difficulty in the Chinese market, but there are still some companies developping and earning reputations. One of the success examples is Inoherb (Xiangyibencao).
This brand takes “harmony with nature” as the enterprise value. In the mix marketing, for the promotion, it emphasizes “cooperation with the University of Chinese medicine in Shanghai” in the name of traditional Chinese culture. That’s a brilliant point who make it different to the other foreign companies. Besides, as people pay more attentions to the health, the product bio gains a lot of favours. The cosmetics based on the plants without many industrial chemicals take the public’s fancy.
Korean and Japanese Brands
In recent years, with the influence of the entrance of the Korean and Japanese culture in China, Japanese and Korean cosmetics are very popular nowadays, and the sale of these products is generally in line except some big brands like Shiseido, Kosé…who have counters in the shopping center.
Aside from the market of cosmetics for women who has already developped in a certain extent, in fact, it is the cosmetics for children and men that have a greater expansion of development. The market for children is almost monopolized by Qiangsheng (Johnson & Johnson), and many brands are starting to develop products for men. And the competition has become increasingly stronger and stronger.
see also the best practice for Cosmetics Brand in China here