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  • K-Beauty in China Are on the Decline But Sulwhasoo is Still Going Strong

    Apart from the poor performance of Korean affordable brands such as Etude House and Innisfree in the Chinese market, sales of its high-end brands such as Sulwhasoo remain impressive. Once upon a time, "Innisfree Green Tea Seed Serum" was the hottest social topic of Chinese girls and it became the trend at that time. Relying on the explosion of Korean dramas and Korean variety, Korean makeup began to slowly enter the Chinese market. Almost every girl who loves to watch Korean dramas has imitated the makeup of the heroin of Korean dramas. Almost every girl who loves watching Korean dramas has imitated the makeup of Korean drama heroines. Representative Korean makeup products such as cushions foundation, BB creams and others gradually entered the Chinese beauty market and quickly became mainstream. Korean cosmetics, however, are now quietly leaving from the dressing table of Chinese girls. Innisfree, for example, has closed at least 90 more stores in China in 2020, following the closure of 40 stores with losses in 2019. It also announces the closure of about 170 Chinese stores in May 2021. It is also difficult to escape from the closure of stores located in China's Guangzhou, Shanghai, Wuhan and other cities. By March 2021, its net assets were as low as negative $5 million and all offline stores in China have been shut down. Makeup collection store Toner becomes the only offline channel for Etude House in mainland China. On the one hand, the current high-end cosmetics market in China is still mostly occupied by European and American international brands. These brands have already accumulated a lot of experience in terms of R&D capabilities and marketing models. On the other hand, the development of social media and online e-commerce in China has allowed many smaller international high-end brands to enter the Chinese market while Chinese brands are also accelerating their development towards high-end in order to transform. Since Korean cosmetics initially opened the Chinese market with affordable price, it will always take time to transform Chinese consumers' impression despite the current rapid growth of its premium business. And it is worth noting that compared to European and Japanese brands, Korean makeup brands do not have good capability in creating new hot selling products. They still rely on classic products so far. In fact, in addition to the poor performance of Korean affordable brands such as Etude House and Innisfree in the Chinese market, sales of its high-end brands such as Sulwhasoo remains impressive. With the approach of an important promotional campaign on June 18th in 2020, Tmall officially opened the pre-sale on May 25, 48,500 sets of Sulwhasoo Essential Balancing Water and Cream were sold and another Sulwhasoo Concentrated Ginseng Set was also sold 16,500 sets in just 1 day, making a total of 65,000 sets of gift sets pre-ordered. The two sets have been ordered for a total of 65,000 units. The Chinese warehouse of Sulwhasoo was in a state of emergency and Sulwhasoo immediately held an emergency meeting and applied to its headquarters in Korea to transfer goods by air to meet the demand of Chinese consumers during the campaign. Sulwhasoo is a high-end brand of Amore Pacific Group. According to the sales in 2019, 4 months before the 2020 618 Festival, the Snow Flower Show brand will be prepared goods have been shipped in place. However, the hot situation of 2020 sales is greatly unexpected by the brand. In addition, China, a key market for the Amore Pacific Group, has seen over 90% growth in Chinese e-commerce sales and several brand of the Group have maintained high growth online. For example, the Sulwhasoo brand achieved notable results in Double 11 - the Chinese online shopping festival in 2020. Among them, the Sulwhasoo stepped into the US$15 million club in the 2020 Double 11, with sales jumping 174% from the previous year. The fact that defeat of affordable brands and the strong competitiveness of mid- to high-end brands shows the current market of Chinese beauty and skin care has entered the era of quality.

  • Chanel Swallows Its Pride to Start Tmall Online Store for More Growth in Chinese Market

    In the Chinese market, Chanel, which has been on the opposite side of the third-party e-commerce platform, seems to have turned around its decision. It have had to make changes to cater more to the preferences of Chinese Gen-Z consumers. Iconic logo of Chanel is made up of two capital "C"s overlapping back to back, embodying a minimalist design concept that seems to be endlessly evocative at the same time. The logo was designed by Coco Chanel herself in 1925 and has been used ever since. There are three different theories about the inspiration of this logo and the last one is the most accepted one over the years. In the early years of Coco Chanel's life, a man named Capel once came into her life who deeply loved her and was very supportive of her career and offered a lot of help. As The writer Justine Picardie once said that the double C symbol in the Chanel logo was a metaphor for the fact that although Coco Chanel and Capelle did not end up getting married, they had a good time together. They did experienced a lot together with overlapping but also being separated from each other at the end. In the Chinese market, Chanel, which has been on the opposite side of the third-party e-commerce platform, seems to have turned around its decision. In July 2019, Chanel beauty opened a pre-sale on the Chinese e-commerce platform Tmall and launched the full range of perfume and beauty products of the brand. In August 2019, Chanel perfume and beauty Tmall official flagship store was officially launched and was settled on the Tmall luxury platform Luxury Pavilion. It was the third international luxury beauty brand that settled on Tmall to open a flagship store after Givenchy and Tom Ford. Chanel Beauty stressed in a statement that Tmall is the only officially recognized third-party e-commerce platform in China for Chanel, which will provide Chinese consumers with a convenient and comprehensive shopping experience. Previously, the official website was the only one online sales channel Chanel Beauty in China, . In the past two years, international luxury beauty brands have become a trend in e-commerce platforms. Givenchy, Armani, YSL and Tom Ford have all opened their official flagship stores in Tmall and achieved good performance. Take Givenchy as an example, its followers exceeded 820,000 on the opening day with the sales of 58,000 pieces of its hot-selling lipstick, which reflects the transformation of the entire Chinese luxury market. For international luxury beauty brands, they have to swallow her pride, do what’s necessary, reduce scarcity and provide an active online and offline experience in an omnichannel approach in the Chinese market. That is somehow at odds with the tone of luxury brands . But today, these luxury brands have had to make changes to cater more to the preferences of Chinese consumers, especially those of the Gen-Z consumers in China, which is the source of their growth. Unlike European and American consumers, young Chinese consumers would rather use their mobile devices to shop on e-commerce platforms than shop on brand’s official websites. For the digital natives of China's Gen-Z, e-commerce shopping experience with smooth and comfortable process is more attractive and time-saving than shopping in offline stores. It also will be more competitive and advantageous. Chanel has opened online purchasing channels such as Tmall in the Chinese market to provide convenient access to the brand's products to reach consumers in different regions of China. In addition, Chanel will also choose to open brand counters offline in China in order to maintain the its image and high-end luxury positioning to a certain extent. In recent years, Chanel has opened several beauty stores in China's second and third-tier cities one after another. Behind the strategy of the opening more stores, it shows its brand's overall strategy of laying out to second and third-tier cities in China. In addition to China's traditional first-tier cities, many emerging and late-comer second- and third-tier cities are also becoming the main driving force of luxury consumption in China.

  • “Meridian” Guerlain Moved from Greenwich to China

    The Chinese market has become a must-have place for luxury. Laurent Boillot, president and CEO of Guerlain France, once joked that “meridian” Guerlain had been moved from Greenwich, England, to China. Since 1828, when Pierre Francois Pascal Guerlain, a physician and pharmacist, opened the first perfume shop in Paris, France, Guerlain, inseparable from perfume, has been spread. In 1830, Guerlain attempted to customize the perfume for individual, which means that a specific scent dedicated to a particular woman or made especially for a certain occasion. Following this concept, Guerlain also created a series of beauty prescriptions and came to prominence in daily skin care products and cosmetics. In 1939, Guerlain opened its first beauty and skincare centre at 68 Avenue des Champs-Élysées in Paris and created his own unique French massage method which became the meeting place of the French fashion circle at the time. The young man, who made his name in perfumery, was later hired as the exclusive perfumer for the royal family. Since 1955, Guerlian has been putting more effort into skin care and cosmetics then he opened manufacturing and research centers one after another. In 1980, the "Issima collection" represented elegant and luxurious style of Guerlain, was created, which put Guerlain into a professional skincare brand. In the 90s, luxury goods were concentrated in the Chinese market and Guerlain also entered China at that time. However, Guerlain, known as the "Queen of Fragrances", did not apply fragrances as a point into the Chinese market but chose its skincare and color cosmetics business. In 2005, Guerlain tried to expand the market share of its fragrance products in China by recommending different styles of fragrances for different consumers through offline stores but the results were not as good as expected since perfume was not widely popular in China at that time with a slow development and small market volume overall. By 2018, the Chinese perfume market also only accounted for 1% of the global perfume market. In fact, Guerlain has gone through a period of confusion over the 20 years since it entered in China. In the era of traditional retail, luxury goods expanded their business and prestige by offline stores and advertising and marketing. Holding exhibitions was one of the easiest ways to build brand image. After entering China, Guerlain has held several exhibitions, such as the Guerlain France KISSKISS Kiss Kiss Lipstick Experience Tour in 2005 and the Guerlain France 100 Years of Excellence Exhibition in Shanghai Meilongzhen Square in 2011. Although Guerlain impressed the visitors, more consumers could not come to visit or simply did not know the information of the exhibitions. As a traditional French brand with a history of 193 years, Guerlain has found a balance between heritage and innovation in the Chinese market. On the basis of inheriting the brand connotation of elegance and sophistication, Guerlain has integrated modern communication and marketing concepts to successfully attract the attention of the new generation of consumers. Based on the analysis of young people, Guerlain chose social media platforms, which are mainly for young users, as an important channel for advertising, and adopted diversified and creative communication methods to convey the brand's connotation to the new generation of young consumers. The day September 7th in 2016 was a milestone moment for Guerlain, which officially registered on the Tmall platform(one of the most popular comprehensive shopping websites in China). Its official flagship store was opened on the Tmall platform. In this way, Guerlain completed coverage of online and offline through all channels. During Guerlain's Tmall Super Brand Day 2018, Guerlain launched its star product of its ABEILLE ROYALE Collection - ADVANCED YOUTH WATERY OIL. Since it is not restricted by geographic regions, Tmall leapt to become the highest selling channel for the product globally on Super Brand Day achieving much higher results than the second largest channel, which was surprised by Guerlain's headquarters executives. Guerlain's parent company, LVMH, has reported a 10% year-on-year increase in sales in its fragrance and beauty division to $7.041 billion for the 2018 financial year, according to the group. The group commented on Guerlain's "significant growth", with China being one of the fastest growing markets for the brand and the group. The Chinese market has become a must-have place for luxury goods. Laurent Boillot, president and CEO of Guerlain France, once joked that Guerlain's meridian had been moved from Greenwich, England, to China. By pre-sale in the first day of the 2019 Tmall Double 11 - Chinese Online Shopping Carnival , high-end cosmetics were popular in the Tmall so much so that Guerlain sold out its entire Chinese warehouse and had to transfer stock from around the world. The core ingredients of ADVANCED YOUTH WATERY OIL of Guerlain extracted from the honey from black bee of the French island in Ouessant. During the pre-sale, Guerlain's official flagship store broke 0.15 billion dollars in 12 minutes and the ADVANCED YOUTH WATERY OIL was sold out of stock. In this case, Guerlain had to hang out a flirtatious apology announcement in the official flagship store of Tmall: "Please forgive that the black bees in Uéchain without 996 work schedule(work from 9 am to 9 pm, six days a week)." For more than 20 years since its entry into the Chinese market, Guerlain has incorporated its reverence and appreciation for nature into its brand philosophy in the name of beauty. It has been actively involved in the protection of biodiversity, the development of eco-design, the protection of the climate environment, the promotion of cooperative projects and other causes. It constantly conveys the brand vision and value pursuit of Guerlain France to Chinese consumers. In 2009, Guerlain entered into a partnership with the Tianzi Mountain Nature Reserve in Yunnan, China, to create the "Tianzi" Biodiversity Development Center. It seeks to protect precious rainforests and orchids in their natural habitat. Iin China, Guerlain and Shanshui Nature Conservation Center are working together to protect bees. Starting in 2020, Guerlain and Shanshui teamed up and worked together on "Apis cerana conservation and sustainable community development" in Shaanxi Province.

  • What is 5D Hyaluronic Acid of QuadHA ? Why Consumers Chose QuadHA Instead of La Mer?

    QuadHA enjoys all of the technology that other brands have but the technology of 5D Hyaluronic Acid is unique to QuadHA. QuadHA is a high-end hospital brand of Huaxi Bio, which is dedicated to "Age Frozen - Anti-Aging". As the self-brand of Huaxi Bio, the world's largest hyaluronic acid manufacturer and sales company, QuadHA naturally adheres to its strong advantages in the field of hyaluronic acid. QuadHA has gathered the core of Huaxi Bio's cutting-edge technology and infused the best ingredients into the brand without reservation due to its positioning. QuadHA enjoys all of the technology that other brands have but the technology of 5D Hyaluronic Acid is unique to QuadHA. The technology is used in the whole line of QuadHA products, including cleanser, mask, toner, essence, cream and eye cream." Among the current Chinese beauty trend, the vast majority of them are the route of affordable alternative or affordable flow, while QuadHA, supported by Hua Xi's powerful technology, has cut its teeth with 5D hyaluronic acid, so we can say that the brand has been on par with the world's biggest brands since its birth." Guo Xueping, the chief scientist of Huaxi Bio, was introduced. “Among the current Chinese beauty trend, the vast majority of them are the affordable or alternative route. While QuadHA, supported by the powerful technology of Huaxi Bio, boasts high-end products of 5D hyaluronic acid. We can say it seeks to be on par with the giant international brand since its birth.” Guo Xueping, the chief scientist of Huaxi Bio, said. In March 2020, one of the sub-disposable essences of QuadHA was launched in the live stream of Li Jiaqi. More than 12,000 boxes of the products were sold out in just 2 seconds. 20 days later, another 5D hyaluronic acid spray from QuadHA was again launched in Li Jiaqi’s live stream and it also made rush buying from the audience in the live stream and was sold out in 2 seconds. The e-commerce live stream gradually turned to be trendy in Chinese. As a top live streamer, Li Jiaqi has huge traffic and considerable instant income, most brands have a strong willingness and have come up with huge discounts and sincerity to promote the brand in his life . But a team of Li Jiaqi has a very strict selection of products , quality, and reputation are the necessary conditions to be able to "appear" in Li Jiaqi's live broadcast. Therefore, the products can be stood up to the test of customers is the most important factor to be on the live broadcast of Li Jiaqi QuadHA's parent company, Huaxi Bio, has been researching the field of hyaluronic acid for 20 years with a global market share of over 40% and a Chinese market share of over 70%. Its raw materials and products are sold to more than 40 countries and regions, including the United States, the European Union, Korea, Japan, Russia, and the Middle East. The strong R&D team, including Guo Xueping, "the father of hyaluronic acid in China" and "the founder of hyaluronic acid fermentation technology", has injected the inherent competitiveness of QuadHA's products. The "5D" of QuadHAproducts represents the highest technology in the field of hyaluronic acid. Its products use a biological enzymatic cutting methods to make highly active ultra-micro-molecule hyaluronic acid. The molecular weight can reach 3000 DA, which can directly penetrate into the muscle base. At the same time, it adopts 5 different efficacy hyaluronic acid compounding plant moisturizers , the storage capacity of the main ingredients is more than 6 times of the ordinary preparation group. It has the functions of after-sun repair, anti-photo-aging, and deep anti-oxidation and its unique 5D hyaluronic acid group structure have the functions of water locking, water storage, slow release input, isolation and protection, and the function of anti-oxidation and anti-inflammation at the bottom of the muscle. After the promotional campaign on June 18th 2020, the sale of the first half of the year has come to a close. The sales of QuadHA in the first half of the year were a "pole vault" compared to the same period last year, with sales of nearly $7.725 million from March to May 2020. However, "QuadHA's ambition" does not only stop here. The debut of QuadHACT50 Cream in Li Jiaqi's live broadcast in 2020 was actually the beginning of QuadHA's cooperation with France's REVITACARE (Silky) laboratory. This lab was wholly acquired by Huaxi Bio in 2017 and introduced its anti-aging star product Cytocare to China, which has been unanimously welcomed by industry physicians and highly recognized by end consumers. Cytocare contains 50 precisely proportioned, highly effective nutrients, a technology known as "CT50". In terms of efficacy, the technology not only fights oxidation, shrinks pores, and brightens skin tone, but also promotes skin rejuvenation and reduces the appearance of sagging and wrinkles caused by aging . "The QuadHACT50 cream is actually just the beginning of the high-end product line of the CT50 series. Next year, we will have more and more products in collaboration with Cytocare Labs with features that will always focus on QuadHA's positioning of freeze-aging - anti-priming." QuadHA's general manager Bi Ran said with her eyes full of vision. As the rising dark horse of Chinese beauty and skincare in 2020, the revenue of QuadHA in 2020 broke 100 million (break 100 million: break 100 million RMB). Furthermore , its first product series - the 5D Hyaluronic Acid Sub-Parabolic series is also popular among consumers. Among them, one kind of sub-disposable is specially developed for skin with acne-prone skin with annual sales reaching 9.02 million units. The re-purchase rate of Superior Antioxidant Concentrated Essence, which is specially developed for skin after a late night, is 77%, enjoying the gold medal product in the QuadHA sub-dispersion series. In addition to QuadHA's ace sub-disposal series, multi-category skin care products such as the 5D Hyaluronic Acid Mask, Adore Your Skin For Good 5D-HA and DNA Caviar Cream, and others developed for different skin problems are also very popular among consumers. Among them, the word "extravagantly added" stands out in QuadHA's promotional video. "Because we are positioned as a high-end cosmetic brand in China, we put more active ingredients into our products regardless of the cost." This makes the price of QuadHAa bit high in Chinese cosmetics," said Bi Ran, general manager of QuadHA. But it is this pricing strategy that has helped QuadHA to gain a loyal group of high-quality users in its first year of existence. "Many of these users usually use international brands like La Mer. But after they tried QuadHA's products, the repurchase rate was particularly high, which gave us enough confidence." In fact, sales of QuadHA broke millions in the first year of its founding (break millions: broke RMB 100 million) with a 90 percent repurchase rate.

  • YSL’s First Perfume Flagship Store Debuted in Shanghai Especially to Extend Chinese Market

    YSL returned to China in 2013 and its lipstick products quickly became popular and gained a large number of Chinese fans. On June 1, 2020, YSL opened the world's first perfume-themed flagship store in Shanghai. In 2008, YSL Beauty was acquired by L'Oréal Group. It returned to the Chinese market in 2013 and is often known as the "King of Out of Stock" and "The Hot-Selling Maker" in China. From ROUGE VOLUPTÉ SHINE LIPSTICK BALM in 2014, ROUGE PUR COUTURE LIPSTICK Star Clash in 2016, to THE SLIM VELVET RADICAL MATTE LIPSTICK now, YSL lipstick products have rapidly become popular in a short time and have gained a large number of Chinese Young fans. The eight years since YSL beauty entered the Chinese market have coincided with the fastest growing years of China's high-end cosmetics industry especially in the area of color cosmetics, which is far beyond expectations. Under the tide of high-end beauty consumption, China has become the world's number one market for the YSL beauty. Starting from a directly-managed counter in Shanghai in 2013, YSL Beauty has repositioned its market plan in China under the leadership of L'Oréal China. Like many high-end brands, YSL beauty has been operated by third-party agents in the Chinese market for a long time. After acquired by L'Oreal Group in 2008, it was slowly adjusted from agency to direct operation. The year from 2013 to 2017 was the period when YSL beauty improved its offline counters and accumulated its reputation in the Chinese market. The act of opening its store in Tmall is the full-scale attack of the Saint Laurent to the Chinese market in April 2018. On April 16, 2018, the occasion of Saint Laurent's entry into Tmall which also is the day of Super Brand Day, YSL beauty took less than half a day to surpass the previous record holder Givenchy, breaking $4.656 million without affecting the availability of goods at offline department stores in China. Obviously, the time YSL beauty really started to popular in China precisely is from the beginning of its return to the Chinese market in the past eight years. Driven by the star products, the popularity of YSL beauty is soaring and the performance is climbing. In 2018, sales of YSL in China exceeded $155 million. The key reason that YSL beauty can continue to "harvest" Chinese young people is the sensitive grasp of Chinese consumers' needs. "YSL is very concerned about young Chinese consumers, trying to understand what young people are thinking and anticipate their needs and preferences in order to provide products that better meet their needs." Xavier DUBRU, Global Deputy General Manager of YSL Saint Laurent Beauty, has emphasized. In 2019, YSL Beauty, which inherits the rebellious, stylish and elegant style of Yves Saint Laurent and the brand, opened one of the world's largest flagship stores in Guangzhou, China under the leadership of L'Oréal Group. The largest flagship store of YSL Beauty in the world was settled in Guangzhou, China. It not only connects with China's most cutting-edge consumers, but more importantly redefines the new beauty makeup retail. As the world's largest flagship store of the "phenomenal" makeup brand, YSL Beauty continues to redefine new retail with the world's popular technology and overturn the traditional perception and model of the beauty industry, based on the integration of the brand's cultural genes. Although YSL beauty has mostly faced consumers with the image of a makeup brand during the eight years it has been in the Chinese market, from the perspective of the brand strategy, in addition to lipstick, eye and primer products, YSL will also promote the development of skin care and perfume categories in the Chinese market. In fact, in the past few years, YSL Beauty has not left behind the skincare and fragrance categories along with the launch of new makeup products. For instance, YSL Pure Color Lip Glaze was released with Y SHAPE Forever Youth Liberator Cleanser and YSL MANIFESTO LELIXIR Perfume for Women at the New Product Preview in January 2015. Just a month before the launch of Star Clash Lipstick and Lumiere Divine, YSL also released Black Opium Perfume White Night Edition. In mid-January 2020, YSL launched its new fragrance product "SOUNDS OF FREEDOM" in the Chinese market. With zero promotional budget, its sales performance on the Tmall platform during the pandemic quickly rose to No. 1 in the perfume category. On June 1, 2020, YSL Beauty opened the world's first fragrance-themed flagship store in Shanghai with 50% of the store's SKUs being fragrance products. The 87-square-meter YSL fragrance-themed store is next to the first standalone beauty boutique opened by Tom Ford, a high-end beauty brand of Estee Lauder Group in late 2018. It showed a strong sense of competition. YSL also debuted in the store a limited edition of 50 bottles of YSL High Definition Collection perfume - YSL YSL Paris Eau De Parfum Flower God Collection Edition, which is only available in China.

  • Safeguard, No. 1 Soap in China, Fined for False Advertising

    Safeguard, which has been using "germ removal" as its successful marketing in the Chinese market, was fined $30,900,000 by its parent company P&G for deceiving and misleading consumers in August 2021. Safeguard is one of the household brands of P & G. As one of the world's leading personal cleaning care brands, Safeguard has been leading children to develop good hygiene habits. Its products in China range from body wash, soap, hand soap and energetic sports series. With a global spread, Safeguard has successfully reached over 30 million children with hygiene knowledge and the importance of hand washing. And the numbers keep growing. Each year, Safeguard sets out with a health mission to reach more countries and help more families to reduce the incidence of preventable diseases such as diarrhea, influenza and pneumonia. In 1992, Safeguard entered the Chinese market, while Lux, which had entered the market in 1986, already had a large scale market on the Chinese soap. Safeguard came in later and pulled Lux off the throne in just a few years. Its market share ranked first accounted for 41.95% according to 2001 data, 14 percentage points higher than Lux which was in second place. With its high quality and accurate market positioning, Safeguard has achieved great success and become the dominant brand in China's personal cleaning products market. Among the many factors that have contributed to the success of Safeguard in China, one of the most crucial is that it found a novel and accurate concept of "germ removal". When Chinese people first started to wash their hands with soap, Safeguard began its "brainwashing" campaign to get Chinese people to wash their hands really clean for over 20 years. "The visible stains have been washed away, but have you washed away the invisible germs?" In Safeguard's marketing, the concept of "germ removal" is the core. It was said in the slogan as “effective germ removal to protect the whole family”. The advertisement was telling people that there are many germs in life through scenes such as kicking a soccer ball, cramming into a bus, carrying gas, etc.. After that, you will see the “Scare-you” germs under a magnifying glass. Then, Safeguard will use experiments to prove that its soap can wash the germs off your hands. At the same time, Safeguard has also been largely promoting personal hygiene education in China. It worked closely with the National Health Commission of the People’s Republic of China, Ministry of Education of the People’s Republic of China, Red Cross Society of China, China Children and Teenagers’ Fund and other authoritative organizations to organize various hygiene education activities. It is committed to building a “Great Wall of Health” for China. The success of Safeguard in China is inextricably linked to its effective marketing planning, communication with target audiences and its product extension strategy. Safeguard has been in China for more than 20 years and has become the preferred brand of personal care products for Chinese families. Its soap accounts for the first market share of soap in China and the body wash sales are at the top of the Chinese body wash market. It is worth mentioning that Safeguard, which has been using "germ removal" as its successful marketing in the Chinese market, was fined $30,900,000 by its parent company P&G for deceiving and misleading consumers in August 2021. The administrative penalty order shows that the product "SafeguardTM Lemon Fresh Soap" of P&G is marked in larger font on the front of the outer packaging with "removes 99% of bacteria#" ("99%" in red) and in smaller font on the side of the outer packaging with "washes away bacteria". Its front is in the difference in color, font size, and location of the label to prominently label the "removes 99% of bacteria" without sufficient scientific evidence to draw consumers' attention. State Administration for Market Regulation found that the above label of the Safeguard product on the product's packaging was a misleading commercial advertisement of the product's functions, which was deceptive and misleading to consumers. The above-mentioned publicity put Safeguard in an advantageous position when selling "Safeguard TM Lemon Fresh Soap" and competing with similar products to the detriment of the legitimate rights and interests of other peer operators.

  • Givenchy Broaden Online Channels to Gain Larger Chinese Market Share

    The rapid development of the Internet and e-commerce in China has led to a closer connection between high-end cosmetic brands and Chinese consumers and has opened up a wider market for them bringing the brands' reputation and sales to a higher level. Givenchy founded the perfume brand in 1957, its first perfume was developed for Audrey Hepburn, named "Taboo". This perfume is very consistent with temperament of Hepburn with classic, elegant, simple and noble all in one. It is actually the incarnation of Audrey Hepburn. Then, in 1989, Givenchy began to launch a makeup and skincare line. Its concept is that bringing beauty and confidence to all women and live their own wonderful lives. Givenchy's classic logo is a combination of four "G" letters and the word GIVENCHY in bold letters, which is Givenchy's treasure. The design of its logo means, Gneteel, Grace, Gaiety, Givenchy. The concept of “4G” has been closely linked to its own products since its inception. The rapid development of the Internet and e-commerce in China has led to a closer connection between high-end cosmetic brands and Chinese consumers and has opened up a wider market for them bringing the brands' reputation and sales to a higher level. With Armani access into Chinese e-commerce platform Tmall on January 16, 2018, the opening day of its Tmall flagship store saw sales of $2,641,800 with the red tube lip glaze setting a new record for high-end lipsticks and attracting 820,000+ followers. Givenchy finally couldn't stay calm any more and launched its Tmall flagship store in March 2018 perhaps it was stimulated by its competitors. Although it is a late arrival of the "elegant", but in no way affects its popularity in the hearts of Chinese consumers. On the opening day, 4.6 million consumers viewed the store, which set a new record in traffic for official flagship store opening. Not only that, the turnover exceeded 4,475,500 dollars when the opening day, which also broke the former record on Tmall platform. Among the many records broken, the most amazing one is still the lipstick. According to public data, the store sold 58,000 lipstick, and the hot product LUMINOUS MATTE HIGH COVERAGE sold over $2,486,400 on the opening day. The remarkable record gained by Givenchy played an important role on its brand development. For these international cosmetic brands supported by large group and global markets, the sales results achieved by their store in Tmall will promote reversely the development of the brand's supply chain and other structural levels and increasing the power of discourse of the Chinese market in its global layout. In December 2018, Givenchy opened its first global boutique in Nanjing. In December 2019, Givenchy opened its first boutique in Guangzhou. In June 2020, Givenchy opened its first boutique in Shanghai. Givenchy tend to interpret the image of a classically elegant product with a way that is more closer to Chinese consumers. The opening of several Givenchy boutiques marks another step towards the brand's strategic goal of further expanding its Chinese retail market by opening stores in very dynamic and promising cities in China. On July 15, 2021, Givenchy Beauty announced its official entry into China's e-commerce platform Jingdong. Givenchy's full line of makeup products was launched as soon as the store opened in Jingdong. For the cooperation between Givenchy and Jingdong Beauty, Zhang Qian, General Manager of Givenchy Beauty in China, said, "We hope that with the powerful online channel and quality service experience of Jingdong, more high-spending customers will understand and love Givenchy's brand connotation and quality products and the elegant style of Givenchy Beauty will be delivered to more consumers." After the launch of the store, Givenchy will further cooperate with "Jingzunda", a high-end customized delivery service of Jingdong Logistics and personalized AR makeup trial service to continuously improve consumers' online experience of buying international beauty brands.

  • With "Digital Marketing in Localization", Dior Occupied More Maket Share in China

    Through strong localization marketing in Chinese, Dior meets Chinese consumer demand with a traffic-oriented selling mindset that has made it one of the most resilient luxury brands under LVMH in the wake of the pandemic. The global cosmetics industry suffered huge losses in 2020 due to the pandemic. The decline was particularly severe in markets such as Europe, the US and Japan. In search of a way to survive, various cosmetic brands are focusing on online sales channels and the Chinese market which is rapidly recovering after the pandemic. In such a situation, online sales and the Chinese market have become two straws of salvation for cosmetic brands. On the one hand, various cosmetic brands are actively exploring online channels, including being listed in major social apps and e-commerce platforms. On the other hand, China, one of the largest cosmetic markets, has demonstrated strong resilience after the impact of the pandemic. Starting from the second quarter of 2020, several international cosmetic companies have mentioned China as an important engine of strong growth for their performance in their group earnings reports due to the strong recovery of the Chinese market. Dior has been very “daring” in its social media marketing in China. It is not only the first luxury brand to use WeChat marketing and Weibo stories but also the first international luxury brand to land on Chinese social media such as TikTok and Bilibili. However, this social media pioneer has previously avoid settling in the third-party e-commerce platforms. But in June 2020, Dior's official flagship store on Tmall launched in a silence. Fragrances, makeup and high-end skincare collections were released at the same time. it was only on June 15, 2020 that the brand announced in Chinese social media Weibo to Chinese consumers of the news - we are on the Chinese e-commerce platform Tmall. Currently, Dior's Tmall flagship store is extremely popular with good sales of beauty products such as lipstick, perfume and loose powder. Dior's official flagship store has a total of 3.76 million followers and 276 SKUs in total. Among them, the best seller ROUGE DIOR was sold 40,000 pieces. , DIOR PRESTIGE is the highest priced product in the flagship store at the price of $558.72/30ml(data as of October 9, 2021). Previously, Dior Beauty was only sold in two online channels, the official website and WeChat app in addition to the offline stores. While opening its e-commerce platform Tmall, Dior Beauty has not forgotten to consolidate its inherent advantages accumulated in the WeChat. On June 14, 2020, Dior Beauty and Chinese actress Jing Tian, Dior's ambassador of vitality and energy, conducted a live stream in the WeChat mini-program to sell the new series of products. Not only that, Dior also announced on the Chinese social media Weibo that the new color of DIOR Dior Makeup Creative and Image Director Peter Philippe designed a new shade of ROUGE DIOR lipstick for Chinese women, 909 Rouge Baby on July 30, 2021. The official platform shows that ROUGE DIOR 909 is exclusive to China showed a tribute to the beauty of China and is also called in the promotion on social media platforms: Retro Berry Red. The lipstick is inspired by DIOR Dior's first 9.9 Red Lip Day. and the shade is named in tribute to the beauty of Chinese women as interpreted by Angelababy Yang, the ambassador of DIOR Dior China Makeup. In September 2021, Dior also entered into a partnership with Meitu, a Chinese artificial intelligence-driven technology company. This is another deep collaboration following the joint development and launch of DIOR Dior's AI Beauty Skin Measurement in 2020. It is reported that this cooperation Meitu provides DIOR with virtual makeup trial services as well as new retail solutions. Users can not only experience DIOR's makeup products with makeup in virtual way through the campaign area of Meitu camera, but also learn the special customized makeup look online by Peter Philip, the creative and image director of DIOR makeup. It also buy the same makeup products of DIOR on the makeup tutorial page. Over the past few years, Dior, a globally renowned luxury brand, has begun to pounce on the Chinese market. Through strong localization marketing in Chinese, Dior meets Chinese consumer demand with a traffic-oriented selling mindset that has made it one of the most resilient luxury brands under LVMH in the wake of the pandemic.

  • M·A·C Three Magic Weapons to Occupying the Chinese Market

    Under the wave of China's lipstick economy, the launch of its lipstick has since become a brand calling card for M·A·C. M·A·C was the first brand which was not created by Mrs. Lauder of Estee Lauder Group. Estee Lauder Group was attracted by its uniqueness to acquire the brand. With the assistance and support of the Estée Lauder Group, exceptional qualities of M·A·C were discovered and spread from North America to the rest of the world. Founded in 1984 in Toronto, Canada, M·A·C is a global professional makeup brand with hundreds of different textures and colors of eye shadows, lipsticks, foundations and other makeup products. With a large team of professional makeup artists and collaborations with artists in fashion, art and cultural trend, M·A·C is constantly developing and innovating products and participating in the creation of trends at fashion shows around the world. In February 2017, M·A·C announced its upcoming settlement into Chinese e-commerce platform Tmall and unveiled the makeup trends of the spring/summer. In May of the same year, the grand opening of M·A·C Tmall flagship store was held with over 100 lipstick colors and textures authentically restored through the Internet to create the ultimate authentic experience for Chinese consumers. On the opening day of M-A-C Tmall flagship store, sales exceeded US$1.86 million with over 60,000 main lipsticks sold. In November 2017, M·A·C first participated in Double 11, the Chinese Shopping Festival and over 400,000 lipsticks were sold in a craze, which wining the No. 1 high-end makeup brand in Tmall Double Eleven. In March 2018, M·A·C "Lip Makeup Diary" was launched and joined hands with Tmall Super Brand Day to create more than 100 short videos. On Super Brand Day, 180,000 lipsticks were sold setting a record for the No.1 high-end makeup on Super Brand Day. In November 2018 when the 10th anniversary of Tmall Double 11, the campaign "Lips are Dreams" led by M·A·C, again ranked the first in Tmall Double 11 high-end makeup selling out the limited edition LIPSTICK / MARBLE in one second and selling more than 850,000 lipsticks. In March 2019, M·A·C Tmall Super Brand Day 400,000 lipsticks were sold over. It ranked top in the Tmall Super Brand Day makeup again with total sales breaking through over $10.695 million. In July 2019, M·A·C launched new collection Powder Kiss with the exclusive debut of the new Tmall Little Black Box. It broke the new single-day record of Tmall beauty new debut. Powder Kiss collection was sold more than 360,000 units with an average of 4 units sold per second. The sales exceeded $1.55 million in 7 minutes and $13.95 million in 24 hours. Like many international beauty brands, success of M·A·C in the Chinese market has not been achieved by launching a few products at random but by selecting one product out of all of them to create a hot product. Under the wave of China's lipstick economy, the launch of its lipstick has since become a brand calling card for M·A·C. And the "CHILI" color, which Chinese fans call "Little Chili", has become one of M·A·C's hot-selling products. Although supported by hot products, M·A·C does not stop. At every important point in time, M·A·C will launch new products and surprising co-branded products. In 2019, M·A·C launched lipstick co-branded with China's mobile game King of Honor. In August of the same year, it launched a product with elements of two dimensions, games and DIY. On Double 11, it launched two limited edition "Starry Night" lipsticks with a free lipstick pack. M-A-C continues to launch new products that have captured the hearts of countless young Chinese consumers. By joining forces with big IPs and increasing product’s selling points, the brand is able to stay trendy at all times and attract more Gen-Z consumers in China. In addition to the constant launch of new products, other secret of M·A·C to success is its combination of cost-effective and offline experiential consumption. The location, decoration and service of stores of M·A·C in China are very close to those of international high-end makeup brands, while the retail price of $26.35 a lipstick gives M·A·C a considerable price advantage. The ability to get the offline brick-and-mortar experience of a first-tier brand at a relatively inexpensive price is completely appealing to youth in China. M·A·C pays special attention to experiential consumption in offline stores. It is good at using high-end technology. In the offline store, lipstick machines are set up in the area of lipsticks. Even the shade of lipstick which are out of stock is available to try in virtual way. In the area of foundation, “Self-service Foundation Table” was set up. It will show the suitable skin type and skin color if you put a foundation on the sensor. In the area of eye makeup, consumers can freely match eye shadow colors according to their preferences and customize their own eye shadow palette. Among them, the makeup service of M·A·C offline store is also a highlight. The makeup experience area is comfortable and convenient for consumers. You can enjoy your try on makeup in the comfortable makeup experience area with one-by-one makeup service enjoying the trendy makeup explanation and exquisite makeup creation service brought by M·A·C professional makeup artists. It perfectly presented the immersive shopping experience of M·A·C offline store.

  • Craze in China, Armani Beauty Launches New Service

    Armani’s best selling products, Lip Maestro Intense Velvet, has broken the record with sales of 17million pieces sold, millions of people into the store and increase 820 thousand followers on January 16, 2018. The official opening of Armani's Tmall flagship store & Armani Tmall Super Brand Day were opened on the same day. This high-end makeup that is widely loved by thousands of Chinese consumers set the world on fire and broke four records of Tmall high-end beauty. According to internal L'Oréal Group data, Armani makeup sales in China are growing phenomenally - up more than 35 percent year-on-year in 2016 and expected to grow more than 17 percent year-on-year in 2017. "Armani Beauty is growing extremely fast in China, twice as fast as the global market," said Gautier, global CEO of Armani Beauty, in a previous interview. Sales are the result but also just the surface. The success of Armani's Tmall flagship store opening this time and even in the Chinese market is based on innovation and deep operations. Armani's classic lip glaze became popular in the Chinese market at a time when China's economic growth was slowing and the "lipstick effect" was highlighted. At that time, a number of brands including YSL, MAC, Givenchy, etc. all took advantage of this trend. Giorgio Armani founded the brand, Armani, back in 1975 in Milan, Italy, the capital of fashion. With its ultimate elegance and flawless style, it is widely accepted by consumers worldwide and attracted a large number of loyal fans. In China, Armani Beauty is an important growth engine for the L'Oréal Group's premium cosmetics division. In February 2019, L'Oréal China CEO Spurgeon revealed at the 2018-2019 Development Strategy Annual Communication Meeting that Armani was among the "Billion Club" along with six major brands - L'Oréal Paris, Lancôme, YSL, Kiehl's and Maybelline, whose sales have reached the billion-dollar level (1 billion yuan: RMB 1 billion, equal to approximately $155 million). Armani makeup sales in China grew by more than 35% and 17% year-on-year in 2016 and 2017 respectively. Gautier, global CEO of Armani Beauty, said that the Chinese consumer was "incredible" and the group was "young", "adaptable" and "they are willing to accept new trends in the world" at the end of 2017. On May 14, 2020, Armani kicked off its third Tmall Super Brand Day event with the theme #ArmaniBeauty20thAnniversary. On this Tmall Super Brand Day, the total volume of Armani lipsticks on the day was the second highest single-day sale inside the whole year of 2020. Among them, the newly launched Tmall limited new series lipstick for summer sold more than 38,000 units on the first day of its launch and it turned out to be the newest hot single product. Since its inception, Armani beauty has always upheld high standards. It not only satisfied with bringing women premium makeup, but also wants to go further to help women show their confidence and charm. This brand positioning for femininity has won the favor of countless young women. In this Tmall Super Brand Day, Armani once again proved the brand's superior status in the hearts of Chinese women consumers with its remarkable performance. In September 2021, Armani Beauty launched the first online face designer beauty service in China. It applied cutting-edge technology to create customized makeup that showcases consumers' individual charms. According to the report, the online face designer will combine Armani's beauty expertise with advanced artificial intelligence technology to scan, measure and analyze different customers' facial features thus it customize a makeup that fits the face. The program can provide more than 200 makeups to meet the needs of different consumers based on different skin tones, face shapes and other features in just one selfie. The online face designer is now available on the Armani Beauty mini app in WeChat and will be available in all Armani Beauty online boutiques worldwide by 2022.

  • Two Keys for Whoo’s Growth in China: Live Streaming + Gift Box

    The gift box are more closely related to brand values than the single product that is inclined to self-use which is the key for the rapid growth of sales of WHOO. During the Tmall Double 11 - Chinese Shopping Festival in 2020, a surprise was witnessed in the list of Tmall beauty. Estee Lauder won the first, followed by Lancome and L'Oreal, which was all to be expected. Yet fourth place went to Whoo which was a big surprise, with OLAY only coming after it. With a deep impression of Korean makeup, memory of Whoo has long disappeared from their view for years with the ebb of the "Korean Fad". In 2020, however, the Korean brand, which focuses on the mid-to-high-end skincare market, frequently appeared in the lists of Tmall Double 11 and 618 beauty Top 10. In the same year, Whoo's "Radiant Rejuvenating Gift Set" became the first single product ever to break $155 million in GMV. At 0:00 on October 21, 2020, Whoo, a high-end luxury skin care product in South Korea from a subsidiary of LG Household & Health, officially opened the 2020 Tmall "Double 11" pre-sale. Only 2 minutes after the opening of the pre-sale, pre-sale in Whoo's Tmall flagship store broke $0.15 billion. In 11 minutes, pre-sale of Whoo's Tmall flagship store exceeded $0.79 billion, which exceeded the whole-day sale of “Double 11” in 2019. And the pre-sale of its best seller, Radiant Rejuvenating Gift Set, exceeded $77 million in only 14 minutes, becoming the first single product that exceeded $77 million in beauty category in "Double 11" shopping festival in 2020. On the second day of the 2020 Double 11 pre-sale, beauty and skincare agency operator Lily & Beauty shared a set of data: the Tmall flagship store of Whoo received pre-sale orders over $108 million on the day with a growth rate of 243%. Radiant Rejuvenating Gift Set became the TOP 1 facial care skincare kit on Tmall which were sold 420,000 sets. The reason that Whoo spread over the Chinese market in the past two years was neither the launch of a certain hot selling new products, nor the signing of a certain famous celebrity but to catch up with the trend of Chinese live stream. In 2019, Whoo made partnership with Top Chinese live streamer Viya. In the same year, this Korean makeup brand return to the Top 10 of beauty charts in the e-commerce festival. During Double 11, Chinese Shopping Festival on November 11st, Radiant Rejuvenating Gift Box of Whoo reached $38 million in Tmall, the sales in live stream of Veya contributing more than 50% of the total. Being aware of the benefits of the live stream, Whoo has even doubled its investment in signing up live streamers to hawk its products during the Double Eleven in 2020. According to data of ECdataway, Whoo has signed up over 130 live streamers to hawk its goods during the pre-sale of 2020 Double Eleven and its products were appeared in more than 300 live broadcasts. During the pre-sale period, more than 80% sales of its turnover was led by live streamers. In terms of selection in live streamers, Whoo has invested much in partnerships with first-and-second-tier live streamers. More than half of them boasts large followers and good traffic such as Viya. The live broadcast of Viya on the night of October 20, 2020 contributed more than 70% of the pre-sales for Whoo in sales of that day. Whoo's sales figures in China performed very well due to it caught the trend of live streaming. In addition to the live streaming, Whoo is positioned very differently from other international brands in that it focuses on kit. The best way to give a gift is with a Whoo skincare set, which enjoys a good looking package, very cost-effective and affordable. Whoo skincare sets sell very well and the precise position of the gift utility is evident to all. As of October 8, 2021, 7, 7 of the top 10 sales links are sets in the Whoo Tmall official flagship. Unlike the hot-selling strategy of famous brands like Lancôme and Estee Lauder, Whoo's main product strategy is very clear - the set. That leaves plenty of room for its imagination by buying with discounts in the sale. For example, in the promotion of 2020, Radiant Rejuvenating Gift Box, which frequently appears in the live broadcast of famous live streamer, is priced at 1,390 yuan with plenty of giveaways including Radiant Rejuvenating 6-piece set, 3 boxes of Self-Generating Anti-Aging Concentrate Serum 3-piece set and a cleansing two-piece set, which is equivalent to a 30% discount.Radiant Rejuvenating Gift Box is more closely related to the brand value than the single product that is inclined to self-use, which has become the key for the rapid growth of the sales of Whoo.

  • La Prairie Settled in Tmall for Accelerating Chinese Layout

    Endowing colorful music and splendid chapter to the long-time duration, La Prairie infuses the promise from time into every minute of life. In the world of La Prairie, timeless beauty is not unattainable. It believes that it is art and present for all. La Prairie pulls back the curtain of mystery to show the world the heritage of artisanship in a stunning glimpse. In 1931, Dr. Paul Niehans, an academic at the University of Zurich, Switzerland, successfully developed a living cell treatment to improve wrinkles and aging. He also established the world-famous anti-aging treatment center Clinique La Prairie in Switzerland. The center soon became a vacation destination for Europe's high society. In 1953, Paul Niehans successfully made the treatment to Pope XII which established status of Clinique La Prairie. In 1978, he founded La Prairie, which is known as "the luxury of skin care", and officially separated the brand from the care center. In 1991 Beiersdorf announced the acquisition of La Prairie and set up an independent research and development team to promote product innovation by replacing the original living cells with plant cell extracts to increase its added value. Under Beiersdorf's management, La Prairie has continued its technological attributes and is known for its high-end ingredients. The products was highlighted by four rare ingredients: platinum, gold, caviar pure and caviar extract. The exquisite technology and high-end ingredients supported high pricing of La Prairie. Traveling far to find the rare ingredients that are at the heart of La Prairie's products. The Chinese market has become an important growth engine for the performance of major international beauty brands in recent years and the premiumization of Chinese beauty consumption is evident in their group's financial results. The performance in 2019 announced by Beiersdorf Group showed that La Prairie sales gained a strong growth of 20% with unabated momentum compared to the 26.8% sales growth in the first half of 2019, which also provided a significant impetus to the overall performance of Beiersdorf Group. The group said growth of La Prairie was driven by its Asian traveling retail business, which includes airports and duty free as well as by outstanding performance in China and Australia. As one of the four premium skincare brands, along with Sisley, Lamer and HR, La Prairie has become the "hot cake" that major department stores in China are competing to introduce it. With the growing demand for high-end cosmetics in the emerging market represented by China, it is also regarded as an important business segment in the new strategy of Beiersdorf C.A.R.E+. La Prairie sales plunged 23.9% in fiscal 2020 following the COVID-19 mainly due to the downturn in travel retail business. To better seize on the China market opportunity, La Prairie has also opened Tmall official flagship store. (Tmall official flagship store: the brand's store on the Tmall platform; Tmall: one of the most popular comprehensive shopping sites in China.) As of September 29, 2021, the Tmall flagship store has attracted over 156,000 followers. The Skin Caviar Eye Lift, priced at $525.98, has turned into the number one selling product in the flagship store. The Platinum Rare Cellular Night Elixir and Platinum Rare Essence, priced at a whopping $1,740.37, have also been purchased by 11 and 5 people respectively. There are a total of 58 SKU in the flagship store of La Prairie with product categories such as eye creams, essences and sleep masks which also includes few makeup products, such as  cushion foundation, liquid foundations and foundations. As a key growth driver for the Beiersdorf Group's brand La Prairie, China remains a key region in the development of the Group's new C.A.R.E+ strategy. Not only has La Prairie expanded its channel development and digital presence through its flagship store on Tmall, but it has also acknowledged further to Chinese consumers and increase sales for its brands in China. In the first quarter of 2021, almost all of La Prairie's 17% sales growth came from its China boutiques and duty-free sales as well as its strategic moving to the Tmall platform. It also achieved 41% growth in the first half of 2021 and China acted as the "accelerator" for its strong growth.

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