Nowadays the third largest place of the daily chemical industry is taken by oral care products. Oral care market being one of the largest is following right after skin care and hair care products. It is well known that toothpaste being one of the demanded daily basis products it reflects one of the largest section in the oral care industry with the 77% of total amounts of the sales value. In China, the sales of the toothpaste industry is expected to generate $4.2 billion in 2018, up 5.4% from 2017. in fact, the revenue has been growing at an average annual 8.6%. It is projected that the toothpaste market will continue to grow at the rate of 4.6% up to $5.3 billion in 2023.
Toothpaste market overview
Toothpaste market challenges
In line with increasing household income levels and consumption power, the demand on toothpaste products is growing steadily. However, when it comes to whitening strips, dental floss and mouthwash it Is being accounted for a small portion of revenue. Therefore, Chinese market of oral care is dominated by major companies in this industry which are foreign-invested companies.
For instance, five toothpaste industry giants such as Crest, Colgate, Darlie and Zhonghua accounted for 68% of the market share in 2014.
Remarkably that foreign brands during these last years have been overtaken steadily by domestic brands. The market share of domestic brands attained around 60 % in 2013. Therefore, online markets are taking over offline markets such as supermarkets which serve as the primary distribution channel for oral care items, are facing challenges due to the online retailers’ rapid expansion. In this sense, JD.com and Taobao experience lots of sales by a large degree when it comes to daily bases products.
Today Chinese consumers become very selective in terms of their daily care products, which means that they tend to choose more high quality products and willing to purchase more online at one time. In addition, third national oral health epidemiological investigation in mainland China revealed that more than 97% of the adults are suffering from oral problems. It reflects that the toothpaste market experiencing the rising demand for specific oral care effects of products. Moreover, health-oriented products have gained increasing favor among the Chinese consumers and the high pricing trend of these products even increased the sales to some extent. When it comes to the ranking, the majority of the competitors have no e-Reputation and are not ranked high on Baidu. Additionally in terms of the increasing economic power of consumers it has created a niche for high-end toothpaste with customized health benefits.
TOP TIPS FOR YOU TO LET YOU KNOW HOW TO PROMOTE YOUR PRODUCT IN ORAL CARE INDUSTRY
INCREASE YOUR VISIBILITY ON BAIDU (CHINA’S GOOGLE)
Like Google, Baidu has a huge reach in China with 75% of all online research carried out here. It really is a portal to China. Businesses need to be visible with a quality site, landing page, content & third party references appearing on the search based on Mandarin Character Keywords. A combination of Pay Per Click Ads & SEO to rank in the search engine results can deliver a lot of quality traffic.
Websites need to be built as ‘vehicles for visibility’ on Baidu (bank-end optimization) with the right keywords optimized in your content as well as titles & descriptions. Selecting the best keywords is about analysing search data to ascertain the highest traffic for the best keyword price, a must when it comes to competitive keywords.
IT’S NOT JUST ABOUT THE BIGGEST PLAYERS
There are a wealth of different platforms to market your business on depending on your product/service type & sector. It’s not just about gaining exposure on the largest platforms to drive sales, there are many smaller, niche sources that have highly engaged followings, remember with over 850 million Chinese now online there are always alternative corners of the net.
In terms of E-commerce Tmall & JD are the biggest names but are far more costly, other niche platforms to consider for e-retail include Little Red Book, Taobao Global, Hupu, or Mad Hatter.
FORGET ABOUT YOUR PREVIOUS REPUTATION
In China you have to start from scratch. The vast majority of internet research (over 97.5%) is conducted in Mandarin Chinese Characters. English content, positive reviews and most western media platforms will not be visible on the Chinese net.
Picture the Chinese web as a separate region of the net, cut off by the ‘Great Chinese Firewall’, it’s a unique ecosystem that requires a fresh approach for you build your visibility & reputation on the right Chinese platforms to your target demographic.
KEY OPINION LEADERS & INFLUENCERS ARE POWERFUL
Key opinion leaders (KOLs) are established online figures that have gathered large followings around themselves. They are highly influential and can be recruited to represent a business or brand. Different KOLs allow you to tap into specific communities and demographics, providing quality targeted exposure. In addition, the best approach for KOLs is to use a number simultaneously on different platforms to post about the brand, this has an ‘echo chamber’ effect and supports the legitimacy of the brand if numerous figures are posting.
FIND EXPERTS OF THE SOCIAL MEDIA MARKETING
You might will need to get a quality guide, which is vital in order to be able navigating the Chinese market. We at GMA are an international team of 60 marketers, copywriters, publishers and ad experts. We work in the plenty of fields beginning from branding, ad strategy to lead generation. We are willing to be our clients’ team in China and build strong and long term, serious relationships based on results and the achievement of clear KPI.
We Have Experience
We have helped Coswell to Develop their Marketing Strategy in China. (See Case study Here)
FINDING A TRUST WORTHY LOCAL AGENCY WILL ALLOW YOU TO AVOID MISTAKES OF NEW BRANDS
If you have any questions or if you are willing to promote your brand in China, contact us now!