A Brand of P&G Follows the Tide of Micro-ecological Skin Care to Enter China
- Chaileedo Press
- Jul 5, 2022
- 3 min read
In January this year, P&G acquired the American probiotic skin care brand Tula Skincare, which is reportedly expected to have net sales of $150 million in 2021. After the official opening of the online stores, can Tula successfully open the Chinese market with the micro-ecological skin care trend?
CHAILEEDO noted that, on July 4, China Standard Time, Tula Skincare (which is hereinafter referred to as "Tula"), an American probiotic skin care brand of P&G, announced the launch of the brand's official overseas flagship store on both Tmall and TikTok China. It also means that the brand officially entered the Chinese market, which is "one of the strongest growth markets" for the group. In addition, the micro-ecological skincare trend that has exploded in China may also be one of the motivations for the probiotic skincare brand to expand its business scope.
In recent years, micro-ecological skin care products have gained unprecedented popularity among Chinese consumers. The main ingredients claimed to improve skin microecology are prebiotics and probiotics. According to data, between the first half of 2020 and the first half of 2021, the online sales of cosmetics with claims of "prebiotics" exceeded 100 million yuan ($14.93 million), the sales of cosmetics with claims of "lactic acid bacteria" were $52.26 million and the sales of cosmetics claiming to add "probiotics" was $237 million, totaling $3.05 billion.
Based on the micro-ecology theory, major companies launched skin micro-ecology skin care products, such as P&G, L'Oreal Group, Shiseido Company, BASF, CsOSMAX, Givaudan and other cosmetic giants. In addition to the international beauty groups who have ventured into the field of microecology in the early stage, Chinese brands have also looked to it. Domestic brands such as Dr. Alva, Lipostides, Dr. Yu, KANS and One leaf, etc., have added "microecological ingredients" to their new products.
Tula was founded in 2014 by Roshini Raj, a gastroenterologist and internist. Tula's product line includes skincare, makeup and oral beauty products that feature patented probiotics, superfoods or vitamins. Furthermore, a skin test on the brand's website that allows consumers to complete a series of questions about their skin before receiving a recommendation of products.
According to the observation from CHAILEEDO, this official announcement is the second news released by Tula since it first opened accounts on WeChat Public Platform, Sina Weibo and Xiaohongshu in late June this year.
Currently, there are 11 skincare products in the two online stores on Tmall as well as TikTok China, including Cult Classic Purifying Face Cleanser, Brightening Treatment Drops Triple Vitamin C Serum, Sleep Overnight Repair Treatment, Glow & Get It Eye Balms and other products, ranging from $22 to $64.
It is worth noting that the brand has seen explosive growth in the U.S. market since its birth. Therefore, the brand has attracted the attention of global cosmetics giant P&G. In January this year, P&G, which continues to bet on high-end beauty, acquired the brand in a deal whose terms were not disclosed. In addition, this marked the third acquisition the company had completed in two months.
Tula was reportedly expected to sell about $150 million in 2021, which was almost twice the size of Farmacy Beauty, a skin care brand that P&G acquired last November, and three times the size of Ouai, a hair care brand acquired last December.
Just two months after the acquisition, P&G announced its return to the high-end beauty segment with the creation of Specialty Beauty. The division would cover brands operating through brick-and-mortar and direct-to-consumer retail channels.
The division's key brands include: the premium skincare brand Tula Skincare, the hair care brand Ouai, the skincare brand Farmarcy Beauty, the skincare brand First Aid Beauty, the skincare brand for middle-aged womenSee Me Beauty, the hair care line Keep It Anchored and the North American business of SK-II.
The introduction of Tula into the Chinese market immediately after the organizational restructuring is a clear sign of the group's ambition for the high-end beauty market and the micro-ecological skin care market in China.
In fact, Chinese and foreign brands have been in the Chinese market for some time to educate the market, and Chinese consumers already have a high level of acceptance of micro-ecological skin care products. Thus, to some extent, Tula, which focuses on probiotic skin care, is more likely to open the Chinese market successfully.
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