CHINA ON THE PULSE OF BEAUTY - 2021 LOOK AHEAD iBLUE x Re-HUB March 2021 - Webflow
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INTRODUCTION | A FORCE OF BEAUTY | A FLOURISHING MARKET PART 1 THE OFFER | CHINA PRIDE | CROSS OVER IP | LIMITED EDITIONS PART 2 THE CHANNELS | PRIVATE TRAFFIC | SOCIAL E-COMMERCE | CROSS BORDER E-COMMERCE PART 3 THE EXPERIENCE | LIVESTREAMING | EXPERIENCE 2.0 | SERVICE UPGRADE China's cutting-edge make up collection store OUTRO | A WORD FROM OUR CEOS
CHINA ON THE PULSE OF BEAUTY ¥549 BN CHINESE COSMETICS MARKET SIZE 2023 Beauty has always been a strong new trends and products, and have cultural force in China. 5,000 years high standards for beauty, partly ago, people used red dates and rice influenced by countries such as CHINA ON THE PULSE OF BEAUTY water to be alluring. Today, with the Korea and Japan. They seek not market size of over ¥300 billion, the only functionality in products, but THE FIRST KEY IS TO WIN ‘Looks Economy’ in China is more also storytelling of brands that fit THE HEART OF DEMANDING CHINESE CONSUMERS relevant than ever before. their personality and expectation. China owns a group of digital-savvy, sophisticated and curious beauty consumers. They are hungry for CHINESE CONSUMERS HAVE information, always on search for 86% MADE ONLINE PURCHASE AT LEAST ONCE
CHINA ON THE PULSE OF BEAUTY BUCKLE UP. HERE WE GO The dynamic of Chinese beauty Last year’s strategies probably industry evolves with the blink of an won’t work anymore. Winning in the eye, thanks to the fast-changing world’s biggest, fastest growing, consumer landscape, the rise of and extraordinarily lucrative beauty new digital ecosystems and new market is like dancing on golden business models. And the Covid-19 quicksand. Move fast or you’ll pandemic accelerated the entire sink. transformation. As we move into 2021, we need to Moreover, ‘C-beauty’- Chinese born decode the latest trends to seize beauty brands are challenging the the market, and to make sure that dominance of international players. we always stay on top of the To stay relevant, brands need a market. China-first strategy for China, about China and with China.
CHINA ON THE PULSE OF BEAUTY Brand offer dives deeper than merely product selling. Nowadays, brands integrate product and experience seamlessly into storytellings CHINA to build loyalty and create more value for PRIDE consumers. CROSSOVER IP LIMITED Here are the megatrends that brands need to EDITION comprehend in 2021 in order to provide better offer:
O N T HE P ULS E O F B EAUT Y “TARGETING GEN-Z, WHO REPRESENTS THE RISE OF CHINESE AESTHETICS AND THE LATEST DIGITAL TREND.”
O N T HE P ULS E O F B EAUT Y CHINA PRIDE ——“Where historical heritage meets social media” Over the past few years, China’s Therefore, they are prouder of their national pride has kept getting stronger Chinese identity than any other and will keep growing. C-beauty is generations. And they are absolute reshaping its image to being the industry digital natives. innovator and trendsetter. International brands have started to adopt Chinese So, they have a foot in two worlds. One elements in their offerings to stay in the new, digital world. Another in the relevant among a new force of past. And these worlds are colliding. consumers, Gen-Z. Ancient Chinese heritage is hot right now (it’s called the ‘Guochao’ trend). Gen-Z represents the next engine of It’s the heavy historical heritage meets domestic consumption growth. Raised in social media. prosperous time of China, they enjoy GEN-Z: THE COHORT BORN AFTER 1995, better resources and life. MAKING UP 15% OF CHINA’S POPULATION
PART 1 | THE OFFER CHINA ON THE PULSE OF BEAUTY CHINA PRIDE ——“Fuse traditional aesthetics with a modern twist” To engage this new group of consumers, real China relevancy, weaving the heritage brands are using Chinese heritage into the brand’s DNA, and ultimately elements in products and marketing, and creating products and brand images that ”A DEEP CHINESE CULTURE Gen-Zers are buying—and loving—this way highly resonate with Chinese consumers. UNDERSTANDING IS THE KEY TO of marketing and these brands and WIN CHINA PRIDE.” products. They post it on social media, and the ‘Guochao’ trend has quickly become a new hype. For brands to stay on top of the ‘Guochao’ bandwagon, it’s not enough to just include // Estee Lauder DW Foundation basic Chinese elements (gold and red // Armani Lip Mestro Liquid // Rouge Dior Metallic Finish // Lancôme TIU Foundation color, zodiac signs, etc.) in their product // Perfect Diary Rouge Slim Lipstick // Red Earth SNE Foundation designs. It’s essential to understand the // YSL Le Cushion Encre De Peau RefilL TOP 3 AND THE OTHERS cultural pride among Chinese consumers’ mind, as well as dive deep into the traditional Chinese temperament to gain Tmall Pre-sale Beauty Rank
PART 1 | THE OFFER CHINA ON THE PULSE OF BEAUTY CHINA PRIDE FLORASIS CASE STUDY C-beauty brand Florasis (花西子) production process. launched a high-end makeup set inspired by the silver-making crafts- The brand teamed up with top lives- manship of China’s Miao Ethnic treamer Austin Li to explore Miao Group, one of the largest ethnic minority’s intangible cultural heritage, minorities in southwest China. The creating buzz on social media brand integrated traditional elements channels. The campaign’s hashtag from Miao’s silver jewelry, an important gained more than 69.6 million views on cultural symbol regarded by Miao as a Weibo in just 1 week. This collection talisman against evil spirits. Florasis speaks true oriental aesthetics and also combines the engraving technique represents a successful interpretation of Miao silver, an intangible cultural of Chinese culture beyond basic heritage, with the oriental micro-carving elements. technique, reproducing the silver- making process in the packaging ¥ 3 BN 69.6M Florasis GMV 2020 Campaign Views on Weibo in 1 week Source: YipitData
CHINA ON THE PULSE OF BEAUTY CHINA PRIDE —— Enabling china pride with product and tech innovation In the past two years, C-beauty brands leveraged "product capability" as the breakthrough point, brought creativity and relevant culture to their products to impress consumers. In the future, brands have to gain an even deeper understanding of the young Chinese demographic. The aim is to create products that not only reflect a great aesthetic but also make full use of tech innovation to endow products with new vitality.
ON TH E PUL SE OF B EAUTY “BE BOLD, UNCONVENTIONAL, AND MORE CREATIVE THAN ANYBODY ELSE.”
PART 1 | THE OFFER CHINA ON THE PULSE OF BEAUTY CROSSOVER IP ——“Now, it’s an era of mega-collaborations. Luring, appealing, extremely rewarding.” Another must-have for brands growing industries in the to gain China relevancy and Crossover IP domain. win fans in 2021 is through Num. of buyer Crossover IP collaboration. It The collab features signature features two brands, often from aspects of the two parent brands, different industries, to collabo- aiming to create social buzz, rate on a new product or consumer excitement, and help collection. brands tap into target consumer ‘tribes’. International Although crossover IP is no brands can leverage deep China Movement Of Cross IP Movement of Cross IP Product views Consumer Trends Of Cross IP per capita consumption stranger for Chinese market, it insights from their local partners. has grown substantially and has seen a 16% increase in terms of sales revenue in 2020, a 16% increase from 2018. And beauty industry is one of the fastest
PART 1 | THE OFFER CHINA ON THE PULSE OF BEAUTY CROSSOVER IP ——“Bring buzz and excitement through product novelty.” “Tap into new tribes” The core of Crossover IP is to in China is the collaboration M.A.C x Honor of Kings create novelty, and it’s essential between food and beauty brands. for brands to collaborate with This might sound unmatched, but partners that are bold, it’s exactly this strangeness that unconventional, yet still carry makes brands stand out in connections in their DNAs and China’s saturated market. brand spirits. It’s time to show “Reignite Excitement” Lancôme x Emoji some creativity. Another way to Several brands have already create the sense of urgency is made the move by combining through launching limited edition. these two popular interests and have created huge social buzz “Bond in brand DNAs” A uniqueness about Crossover IP and sales conversion. Shu Uemura x Onitsuka Tiger
PART 1 | THE OFFER CHINA ON THE PULSE OF BEAUTY CROSSOVER IP JUDYDOLL X CORNETTO CASE STUDY Hot C-beauty brand Judydoll teamed up dreamy vibe. with ice-cream brand Cornetto to launch a crossover IP campaign, building JudyDoll is one of the favorite makeup around the idea of summer dreams in brands of makeup enthusiasts and daily summer 2020. makeup users. The brand has garnered a huge Gen-Z fan base by fully The two brands launched co-branded leveraging the ‘cute economy’ and an flavors of ice cream and a makeup affordable price point. The culmination collection featuring exclusive summer of the popular ice cream brand and the eyeshadow and highlighter. The color new C-beauty giant has created a palette of the crossover IP (ice cream frenzy on social media, helping both and eye shadow) was identical: orange, brands gain exposure in the digital pink, taro and lilac, with an icy and world. glittery finish. An adorable unicorn mascot further fulfilled the collab’s
PART 1 | THE OFFER CHINA ON THE PULSE OF BEAUTY CROSSOVER IP Gucci x Animal crossing >> RICHER STORYTELLING Shu Uemura x Pâtisserie Sadaharu AOKI paris To highlight the brand characteristics and strengthen the brand >> HIGHER “FACE SCORE” symbol, crossover IP collaboration pays more and more attention to the deep and unique emotional setting. China has stepped into the “FACE SCORE ECONOMY” from the previous "TRAFFIC IS KING" era. Through the construction of values, and supplemented by story- based scenes, IP's emotional core directly hits consumers’ pain Consumers are increasingly in favor of crossover IP with points and creates emotional resonance. high fashion and design sense. Looking for niche, self- pampering, and socializing are the new behavior tags.
ON TH E PUL SE OF B EAUTY “FOR BRANDS, LIMITED EDITION IS A GREAT WAY TO CREATE EXCITEMENT.” “FOR CONSUMERS, BUYING LIMITED EDITION MAKES THEM FEEL SPECIAL.”
PART 1 | THE OFFER CHINA ON THE PULSE OF BEAUTY LIMITED EDITION ——“Limited-edition products come and go quickly, but the trend-following fans keep the new releases coming.” The FOMO (Fear Of Missing For brands, this is a great limited holiday collection, Out) effect is driving Chinese opportunity to create their and so on. Some brands are consumers’ lavish spending own tribe and increase brand more protective of their now more than ever, engagement tremendously, brand DNA and do not especially young demogra- and upgrade brand image. collaborate with others. phics who are religious But how? The answer is Financial constraint can be trend-followers. On one through limited edition offers. another reason for brands to hand, they follow every move choose limited editions in the brand makes to stay Different from IP collabora- place of IP crossovers. Tmall ‘must haves list’ is one relevant. On the other hand, tion, limited edition refers to of the ways for Chinese they want to differentiate a brand’s organic product customers to discover limited collections of the season. themselves from generic offering by launching a buyers. special-packaging product, a
ON TH E PUL SE OF B EAUTY LIMITED EDITIONS ——“Leverage E-Commerce festivals for product launch.” Limited editions foster newness and exclusivity, representing a great way of sustaining customer excitement about the brand. Products featured in limited collections have higher scarcity value than products sold year- round. Cultural and E-Commerce festivals such as Chinese New Year, Double 11, Valentine’s Day and others are perfect opportunities for launching limited editions. CHINESE NEW YEAR CASE
PART 1 | THE OFFER CHINA ON THE PULSE OF BEAUTY LIMITED EDITIONS ——”It’s going to be more about creating the unique experience around the product.” In addition to combining consumer insights with product design, creating a "limited” unique experience is also becoming a must-have. Creating experiences such as gamification or leveraging high buzz topic will help in fueling re-transmission, creating another wave of social buzz through organic user generated content (UGC). Little Ondine x POP MART Bunny
CHINA ON THE PULSE OF BEAUTY KEY TAKEAWAYS CHINA PRIDE ❏ Bring to life Chinese heritage to emotionally connect with China’s many digital tribes, especially those within Gen Z. ❏ The more local and specific, the greater feeling of personalization. CROSSOVER IP ❏ Unexpected partnerships increase excitement and bring new light THE OFFER ❏ to products. Tap new consumer subcultures using deep insights. LIMITED EDITION ❏ Drum up consumers’ interest in the brand and make them feel current and relevant ❏ Seize the timing of traditional and E-Commerce festivals
CHINA ON THE PULSE OF BEAUTY The astounding growth of China’s digital ecosystem has proved to transform the business landscape across industries. Covid-19 has accelerated the pace of digital PRIVATE revolution. TRAFFIC SOCIAL E- New channels have been created and COMMERCE CROSS evolved into new dynamics for all brands to BORDER E- expand its influence, reach out to their COMMERCE target at the right place and the right time, and convert sales to optimize ROI.
ON TH E PUL SE OF B EAUTY “PRIVATE TRAFFIC ALLOWS BRAND TO REACH OUT TO TARGET AUDIENCE IN THE MOST PRECISE AND COST-EFFICIENT WAY.”
PART 2 | THE CHANNEL CHINA ON THE PULSE OF BEAUTY PRIVATE TRAFFIC ——”Great tool to increase user stickiness and retain customer loyalty.” Private traffic is an upgraded brands greater control over term of art for platforms that allow brand perception. Brands shape brands directly engage with their own story, rather than users and convert into sales. limiting it to whatever third-party Private traffic helps brands detour E-commerce giants tell them they PUBLIC PRIVATE around the public traffic giants (Tmall, Taobao and JD), around can do. Private traffic also creates communities of custo- TRAFFIC TRAFFIC their hoarding of customer data, mers (micro-tribes). And and around their commissions. communication with micro-tribes What’s not to like? is more personal and more responsive. Moreover, private traffic gives
PART 2 | THE CHANNEL CHINA ON THE PULSE OF BEAUTY PRIVATE TRAFFIC ——“Leverages KOC for organic post; Chatbots and AI for personalization.” While China’s E-commerce still has enterprise account, mini program and pantheon of beauty KOLs (key opinion video channel, forms a Private Traffic leader), Private Traffic prioritizes one- Ecosystem. on-one engagement, giving rise to micro influencers, or KOCs (key Chatbots and AI help brands manage opinion consumer). They are the private traffic, while mini programs evangelists of the brand, and they are provide effective segmentation. WeChat willing to post product impressions and public account acts as the main input reviews on social media, generating provider and first touchpoint with target organic contents that appeal to today’s consumers in Private Traffic. ever-sophisticated Chinese consumers. The most relevant Private Traffic in “Private traffic is best for one- on-one engagement and China are Weitao, embedded in brand’s conversion.” Tmall store, and WeChat. Brand’s public WeChat account, together with Lancôme Official WeiTao Sephora Enterprise Account
PART 2 | THE CHANNEL CHINA ON THE PULSE OF BEAUTY PRIVATE TRAFFIC PERFECT DIARY CASE STUDY 1 > Lead Traffic Card 2 3 > Enterprise Wechat Account Operation > Exclusive benefits on Wechat Mini Program 4 > Gamification Leading traffic from Using Enterprise WeChat Account Welcome package, free Enhance the interaction and brand’s offline to online efficiently for secondary marketing gift for client retention emotional connection with consumer
PART 2 | THE CHANNEL CHINA ON THE PULSE OF BEAUTY PRIVATE TRAFFIC ——Upgrading from "attract traffic" to "build a traffic pool” Through the matrix of transformation ability. From the "livestreaming + community + user's digital assets to the cross- mini program", brands can es- platform and multi-media, it tablish and operate their private requests long-term refined ope- traffic pool, which has become a ration. new lucrative business oppor- tunity. The private traffic pool building is a challenge for brand's digital ColorKey community and membership points exchange service on mini program
ON TH E PUL SE OF B EAUTY “SOCIAL E-COMMERCE HELPS BRAND EXPAND ONLINE REACH, MAKING MARKETING A TWO-WAY COMMUNICATION.”
PART 2 | THE CHANNEL CHINA ON THE PULSE OF BEAUTY SOCIAL E-COMMERCE ——”Stay close with your target audience, know what they like, and speak their language.” China’s E-commerce breaks down ney, leveraging social content in the +67% into two main categories. Social path to purchase. Wechat shopping Mini-program YoY sharing E-commerce, such as PDD growth (PinDuoDuo), and social content E- Brands leverage social E-commerce commerce. to expand their online reach and reach target audience where they +36% Social content E-commerce refers to spend the most time on. It’s also a Social content EC is growing the rise of new platforms based on good way to engage with consu- sharply social insights. These platforms mers in a personalized way, mak- support monetization by allowing ing marketing a real two-way com- external links to E-commerce sites. munication. Two major players in this realm are Product Community IWOM (Internet word of mouth) Douyin and RED and have become Review Sharing a greatly relevant marketplace for beauty brands. KOL seeding plays a crucial role in the consumer jour-
PART 2 | THE CHANNEL CHINA ON THE PULSE OF BEAUTY SOCIAL E-COMMERCE LITTLE ONDINE CASE STUDY Little Ondine, C-Beauty brand that went purchase. Therefore, the brand invested viral on social media in 2020, is the best heavily in vertical beauty accounts by example for leveraging Douyin as its inviting 3,500+ KOLs and KOCs to post main social E-commerce and reached seeding content on Douyin, creating an 3,000% sales growth between June and omnipresence of the brand and its August 2020. hero product, the gel liner, and giving target audience a sensation that Price:¥150 Little Ondine’s target segmentation everyone is using it. focuses on Gen-Z female (age between 18 and 23), who like to try out new makeup products and use Douyin as Promote goods sales effort through Douyin live-streaming their main source of research before Source: mktindex.com 3,000% 3,500 + sales growth Jun – Aug 2020 KOL & KOC posts
PART 2 | THE CHANNEL CHINA ON THE PULSE OF BEAUTY SOCIAL E-COMMERCE ——“Makes shopping a seamless experience. Watch product reivew and place order immediately .” Social sites not only allow external E- Within a year, these social giants have commerce links. These social platforms become both partners and direct are also becoming E-commerce competitors of the E-commerce giants platforms. RED now has RED Malls where and will continue to grow popularities among you can buy products without leaving the consumers. platform. Douyin now supports Douyin store. Shopping is a seamless experience where you can watch your favorite KOL and buy “SOCIAL E- the product they’re talking about imme- COMMERCE MAKES diately. SHOPPING FUN AND SEAMLESS.” RED MALL DOUYIN STORE
PART 2 | THE CHANNEL CHINA ON THE PULSE OF BEAUTY SOCIAL E-COMMERCE ——”Refine strategy to attract more audiences, while keep the brand’s tonality.” In the future, social E-commerce will Therefore, brands need to curate a still take up a large market share. more refined social E-commerce Besides, consumers from 3rd and strategy to fulfill different tiers of 4th tier cities have become a new consumers meanwhile maintain the force of consumption on social E- brand's tonality. commerce platforms and deserve special attention. The huge consumer base and purchase potential make these consumers impossible to be neglected.
ON TH E PUL SE OF B EAUTY “A STEPPINGSTONE TO A FULL E- COMMERCE, PROVIDING ACCESS TO MARKET WITH A LOWER COST OF DOING BUSINESS.”
PART 2 | THE CHANNEL CHINA ON THE PULSE OF BEAUTY CROSS BORDER E-COMMERCE ——”A shortcut to validate, to test the market and to generate the first buzz among consumers.” Consumers have been increasingly attracted to CBEC channels, especially young demographics, thanks to the huge diversity of 5,000 + 73.5% 82.6% 70.1% brands and products. Another competitive edge that differentiates AVG MONTHLY INCOME FEMALE AGE
PART 2 | THE CHANNEL CHINA ON THE PULSE OF BEAUTY CROSS BORDER E-COMMERCE FENTY BEAUTY CASE STUDY Before its entry into Sephora in areas of China that don’t require animal testing, Fenty Beauty utilized Cross-Border E-Commerce by launching its flagship store on Tmall Global as a method of an initial market validation. The cross-border selling of Fenty Beauty is backed up by social media buzz on Weibo, WeChat, and Red. Fenty Beauty takes advantage of cross-borderE - commerce making Fenty Beauty even more accessible to its digitally savvy Chinese consumers whilst staying true to its 100% cruelty- free commitment.
PART 2 | THE CHANNEL CHINA ON THE PULSE OF BEAUTY CROSS BORDER E-COMMERCE ——”Quickly generates social buzz, together with livestreaming and social media.” The pandemic limited overseas can help brands upgrade the travel but boosted overseas E- content ecosystem and increase shopping consumption. engagement and buzz among target consumers. From this time forward, it will be a good time for overseas brands to Besides, brands should face up to enter China and they should seize the channel of “Daigou”, coexisting new opportunities and touch points with them and regard them as one to reach new consumers. Levera- of the business growth points. ging marketing tools such as livestreaming and social media
CHINA ON THE PULSE OF BEAUTY KEY TAKEAWAYS PRIVATE TRAFFIC ❏ Build social relationship to nurture sales while minimizing depen- dence on 3rd party providers ❏ Consolidate multiple traffic sources to create a true omnichannel experience SOCIAL CONTENT E-COMMERCE THE CHANNEL ❏ ❏ A main touchpoint for product discovery and engagement Leverage the power of KOL, KOC, and consumer insight on different platforms to create seeding content accordingly CROSS BORDER E-COMMERCE ❏ An efficient way to validate Chinese market before fully launch its official sales channel ❏ Bypass lengthy obligatory processes such as registration and testing
CHINA ON THE PULSE OF BEAUTY In China’s cut-throat beauty market, brand experiences are just as important as the product itself. Chinese consumers don’t LIVESTRE separate products and experiences anymore. AMING NEW It’s combined into one — how the brand make BEAUTY them feel, both tangible and intangible. RETAIL SERVICE Second, along the long consumer journey, they want to experience the brand 360° UPGRADE before they buy the product.
PART 3 | THE EXPERIENCE CHINA ON THE PULSE OF BEAUTY LIVESTREAMING IN THE NEW ERA ——”A marketing, sales, and entertainment tool all in one.” Livestreaming first blew up in 2019, creating every day, making livestreaming the fastest- a new growth opportunity for E-Commerce evolving tool. Popular formats including sales. Covid-19 has further accelerated the virtual production site visits, webinars, transformation of livestreaming, making it roundtables, new product debut, or even more dynamic than ever, and a crucial night gala. Hosts also vary from profession- touch point to communicate with consumers. al live streamers to celebrities, C-Levels to create more excitement and newness. Now, livestreaming in China represents a marketing, sales, and entertainment tool all in one. Moreover, it is seen that there is a shift from sales and transactional focus to experiential and entertainment focus, which ”LIVESTREAMING IN CHINA IS A MARKETING, SALES, consequently leads to a greater conversion. AND ENTERTAINMENT YSL Beauté CNY pop-up store opening livestream TOOL ALL IN ONE. ” #IBLUE CASE While KOLs have long been the faces of livestreaming, new formats are emerging
PART 3 | THE EXPERIENCE CHINA ON THE PULSE OF BEAUTY LIVESTREAMING IN THE NEW ERA ——”Leverage technologies to enable more experience-driven formats.” Another advantage of live- streaming real-time conversations across is that it can be done cross-border borders not only increases brand through the upgrade of technology. awareness, but also creates a new In this way, overseas brands can experience for consumers. increase their awareness and push Lancôme E-symposium sales thanks to featured discounts Remember, it’s all about the Cross Border that represent a big drive to purchase EXPERIENCE. Livestreaming for consumers in China. Leveraging technology to enable Green 360° AI Screen Panorama Host ”LIVE STREAMING E- COMMERCE AIMS TO #IBLUE DIGITALLY REPLICATE THE CASE PURCHASING EXPERIENCE AT A PHYSICAL STORE.”
PART 3 | THE EXPERIENCE CHINA ON THE PULSE OF BEAUTY LIVESTREAMING IN THE NEW ERA 3CE CASE STUDY ——”It’s all about creating the fun and ultra-interactive experience.” Interaction is the key to live- Using fun and engaging mechan- streaming, it’s crucial to keep your ism combined with unique product audiences engaged all the way till offer was the key to hook audience the end. and increase conversion. 3CE designed their Double 11 At the same time, diversified guest livestreaming in the format of hosts can bring excitement and so- variety show around one site cial buzz. game: makeup master classes, live with other brands, lucky fan Before/After makeup, etc. 3CE D11 LIVESTREAMING 寻妆作乐 # PURSUE THE PLEASURE OF MAKEUP
PART 3 | THE EXPERIENCE CHINA ON THE PULSE OF BEAUTY LIVESTREAMING IN THE NEW ERA ——”Leverage technology, build emotional bond, and be creative. That’s how you stand out from your competitors.” In the future, livestreaming will become the trigger emotional resonance and cultural infrastructure of brands. “Omni-platform brand relevancy based on brand tonality. livestreaming + KOL livestreaming + private traffic precipitation" will become the standard livestreaming combination for brand. Different experiences can be provided through diverse livestreaming formats, combining AR, VR, and other technologies to jump out of the mere ”product selling“ mode. Instead, it has to Lancôme Travel Retail x CDF Haikou x Team Lab livestream
PART 3 | THE EXPERIENCE CHINA ON THE PULSE OF BEAUTY NEW BEAUTY RETAIL ——”Creating immersive and fun experience.” “GEN-Z: DIGITAL NATIVE. WANT EXCITING AND ENGAGING SHOPPING EXPERINCE.” Born in digital era, Gen-Z consumers want shopping journeys – especially in perfume more than the convenience of online product segment, some beauty and shopping. They want shopping to be fun cosmetics product segments. They want to and exciting. This is how ‘New Beauty be provided with an opportunity to Retail’ is born. It integrates online and physically experience product features offline experience, redefining the such as smell, feel, look. relationship of consumer, product, and store. With new beauty retail, purchasing has evolved from an individual activity to a Enhancing in-store experiences is social landscape, or even social equally important to the 360° approach activities. to brand online experience and added touchpoints. Customers prefer hands-on
PART 3 | THE EXPERIENCE CHINA ON THE PULSE OF BEAUTY EXPERIENCE 2.0 >> Harmay >> Lancôme Young and aspiring consumers who were seeded on RED and Flagship store in China want to experience the products features both Oriental and in a comfortable and aesthetic French design style, providing space. The Costco style product an immersive shopping display gives a sense of abun- experience. dance and cost friendly.
PART 3 | THE EXPERIENCE CHINA ON THE PULSE OF BEAUTY NEW BEAUTY RETAIL ——”Express brand tonality while engage with consumers.” Driven by the combination of Brands need to measure if consumer needs, supply chain collaborate with boutique stores upgrades, and online marketing according to their values and platforms, a new boutique store tonality. model has emerged. This new kind of boutique store features star products to young customers. Strategies focus on diverse categories, good price, and high purchase volume. “NEW BEAUTY RETAIL: BOUTIQUE STORE COMBINED WITH COSMETICS AND LIFESTYLE
PART 3 | THE EXPERIENCE CHINA ON THE PULSE OF BEAUTY SERVICE UPGRADE ——”Personalized services backed with big data support.” ”BIG DATA HELPS BRANDS PROVIDE PERSONALIZED SERVICE TO THEIR Technology has handed beauty brands collect on backend helps brands develop TARGET CLIENTS.” operating in China a powerful new tool: segmented and personalized service on hyper-personalization. Armed with consu- front-end. WeChat messages, video mer data, bots and AI can help brands product demos and one-to-one consul- personalize customer service. Touchpoints tations, for example, are making brand can now be more detailed and targeted. experiences more personal. The huge amount of client data being Personalized One-to-One Chatbot Product Demo Consultation
PART 3 | THE EXPERIENCE SERVICE UPGRADE —— INTELLIGENT BEAUTY ERA Looking ahead, shopping assistance China is a digital culture. Tech- and beauty assistance training will nological penetration and advance- continue to evolve, making the ment have made hyperpersona- “brand offer” feel more personalized. lization happen faster and more broadly. This is happening everywhere. But like all things digital, it’s happening more frequently in China.
CHINA ON THE PULSE OF BEAUTY KEY TAKEAWAYS LIVESTREAMING ❏ Livestream everything – Be strategically and tactically creative ❏ Product demonstration as well as branding purpose NEW BEAUTY RETAIL THE EXPERIENCE ❏ Combine online and offline (O2O) to create omnichannel experience SERVICE UPGRADE ❏ Improving consumer traffic and conversion while getting a deeper insight into consumer behavior ❏ Leveraging AI and data to give better service/experience to customers (better know the customers by data tracking)
OUTRO A word from our CEOs
CHINA ON THE PULSE OF BEAUTY Over the last few years, China has proved to be one of, if not the most dynamic and lucrative markets globally. Exceling in the fast-growing, ever-evolving Chinese beauty market is a holy grail for everyone: having the right strategy is not enough, high cultural relevancy is the key. Looking forward, it’s crucial to embrace the market and consumers with more localized approach that generates cultural resonance among the digital-natives. Victor YANG CEO, IBLUE COMMUNICATIONS
CHINA ON THE PULSE OF BEAUTY China is relentlessly pioneering how to market and sell in the digital age. Relevance is everything in China, and the pace of change means that staying relevant requires smarter and faster solutions. Having the best product or the best advertising is only as good as the amplification you can apply to these through accessing new audiences, being present on new channels and delighting with new ways to experience them. This is the business imperative of winning in China in any category, but especially a crowded beauty space. Max PEIRO CEO, RE-HUB
CONTRIBUTORS FOR THIS REPORT DANNI LIU EUROPE MANAGING DIRECTOR 7 YEARS IN CHINA + 4 YEARS IN EUROPE EX-DIGITAL HEAD OF PIAGET AND CHANEL CHINA MAX PEIRO BRAND STRATEGY & COMMUNICATION CHIEF EXECUTIVE OFFICER LUXURY AND BEAUTY INDUSTRY EXPERT CHINA DIGITAL MARKETING EXPERT 13 YEARS EXPERIIENCE IN CHINA IN THE CROSSROADS OF DIGITAL, TECHNOLOGY AND RETAIL. SERIAL ENTREPRENEUR DIGITAL TRANSFORMATION SARA XIE STRATEGIC ALIGNMENT COMUNICATIONS AI&DATA EXPERT RE-HUB ASSOCIATED ACCOUNT DIRECTOR +8 YEARS RICH EXPERIENCE IN PROJECT MANAGEMENT. GREAT KNOWLEDGE OF SALES CHANNELS ECOSYSTEM YOYO LIANG (RETAIL, WHOLESALE, DS, ECOMMERCE, MARKETPLACE) CHIEF CLIENT OFFICER ADVOCACY EXPERT E-COMMERCE EXPERT +11 YEARS EXPERIENCE IN DIGITAL LUXURY, FASHION FASHON & BEAUTY INDUSTRY EXPERT EX-BD HEAD OF CONDE NAST CENTER OF FASHION&DESIGN IBLUE LUXURY AND FASHION EXPERT CHINA DIGITAL ECOSYSTEM CHENXI SHI NEW GROWTH OPPORTUNITIES ACCOUNT STRATEGIST + 4 YEARS EXPERIENCE IN BRAND CONSULTING AND INTERNATIONAL PROJECT MANAGEMENT CONTENT COMMERCE EXPERT CHINA DIGITAL MARKETING EXPERT BEAUTY & LIFESTYLE SECTOR EXPERT
CONTACT US Founded in 2013, iBLUE Re-Hub helps global luxury, beauty and COMMUNICATIONS is the first fashion brands in China to generate new independent Chinese creative agency. growth opportunities using AI&data We are china native, with more than 300 solutions. iBLUERs globally. COMUNICATIONS RE-HUB We help our clients to gain competitive Our “Modern Silk Road” international advantages in this fast-changing digital team are dedicated to connect west and ecosystem with agility and efficiency east, helping multinational brands to gain success in Chinese market. IBLUE www.ibluesh.com www.rehub.tech sara.xie@ibluebcn.com max@rehub.tech
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