CHINA ON THE PULSE OF BEAUTY - 2021 LOOK AHEAD iBLUE x Re-HUB March 2021 - Webflow

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CHINA ON THE PULSE OF BEAUTY - 2021 LOOK AHEAD iBLUE x Re-HUB March 2021 - Webflow
CHINA ON THE
PULSE OF BEAUTY
2021 LOOK AHEAD

     iBLUE x Re-HUB
        March 2021
CHINA ON THE PULSE OF BEAUTY - 2021 LOOK AHEAD iBLUE x Re-HUB March 2021 - Webflow
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 - 2021 LOOK AHEAD iBLUE x Re-HUB March 2021 - Webflow
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 - 2021 LOOK AHEAD iBLUE x Re-HUB March 2021 - Webflow
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 - 2021 LOOK AHEAD iBLUE x Re-HUB March 2021 - Webflow
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:
CHINA ON THE PULSE OF BEAUTY - 2021 LOOK AHEAD iBLUE x Re-HUB March 2021 - Webflow
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.”
CHINA ON THE PULSE OF BEAUTY - 2021 LOOK AHEAD iBLUE x Re-HUB March 2021 - Webflow
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
CHINA ON THE PULSE OF BEAUTY - 2021 LOOK AHEAD iBLUE x Re-HUB March 2021 - Webflow
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
CHINA ON THE PULSE OF BEAUTY - 2021 LOOK AHEAD iBLUE x Re-HUB March 2021 - Webflow
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 - 2021 LOOK AHEAD iBLUE x Re-HUB March 2021 - Webflow
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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