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- LUX: Why has it been One of the Best Seller in China for 97 Years?
LUX is an international brand that is present in more than 100 countries around the world with major markets such as China, India and Japan. Founded in 1889, LUX, "Sunshine Flakes" as its former name, initially produced only soap for washing clothes. A few years later, its name was changed to LUX from the Latin word for "light", which also connotes luxury. LUX is an international brand that is present in more than 100 countries around the world with major markets such as China, India and Japan. Today, LUX has provided consumers around the world with unique formulations and premium scented bath products. In 2003, sales of LUX reached nearly $1.1 billion dollars. In December 2018, the World Brand Lab released the list of "The World's Top 500 Brands in 2018" and LUX ranked 492nd. In November 2019, LUX was awarded the Top 10 in the "2019 Home & Daily Brands Top 10 List through E-Commerce Consumption" released by iiMedia Ranking. In 1923, British Lever Brothers Company, parent company of LUX also refers to predecessor of Unilever Group, invested China Soap Co. Ltd., in Shanghai to start producing LUX soap. In 1924, LUX became one of the first international brands to enter China. In 1986, the reform and opening up led Unilever's re-entry into China and the establishment of its first joint venture in Shanghai. Since the official launch of Unilever Shanghai Ltd., in December 1987, the scale of the enterprise and the product range has been expanding, which led to increasing economy of the company. The product category of LUX has grown from a single LUX soap with 2 kinds in the early days to 72 kinds in four categories in 1996. Besides that, LUX also launched a full range of body wash products in China in 1992. As an international brand, LUX has always gained more and more popularity among people in the spirit of continuous improvement and the pursuit of beauty. Whether in China or global, LUX only invites popular celebrities to endorse the brand. In China, LUX has invited Jolin Tsai(Cai Yilin), Shu Qi and Angelababy (Yang Ying) to be its ambassador, all of whom enjoys high reputation, unique charm and high standard on beauty. In 2009, LUX Body Wash has the largest market share in the modern channel. In 2010, LUX Body Wash products became the number one brand in beauty bathing in China. On June 18, 2015, nearly 180,000 pieces of LUX Soap 115g were sold in JD mobile client in one day. On October 21, 2019, LUX took only 3 minutes to set a sales record of 100,000 bottles of LUX products in a live broadcast with VIA(Wei Ya, a famous live streamer). In Tmall Taobao, (Tmall Taobao: one of the most popular comprehensive shopping sites in China), the top 3 monthly sales of LUX products are 70,500, 62,400 and 55,400 respectively. The products of it enjoying monthly sales of over 10,000 have more than 40 kinds. (Data as of September 17, 2021 11:49) In addition, LUX has been committed to environmental protection in China. Since 2011, LUX has been working with global retailers to launch a nationwide "Buy LUX, Be Green" campaign in China to encourage consumers to buy more environmental friendly products. To better convey the concept of sustainable environmental protection, LUX has also launched the "LUX Green Hada Campaign" joining hand with the China Environmental Protection Foundation. The campaign aims to help improve the ecological environment in Tibet through public welfare grass planting. Meanwhile, it also helps the development of the Tibetan economy and the improvement of people's lives through multiple channels and elements such as "public welfare + targeted poverty alleviation". Unilever, the parent company of LUX, has mobilized the company's global resources to act aggressively to fight against the epidemic at the peak of the outbreak in China in 2020. As to fully support the fight against the epidemic, Unilever China also mobilized all of its stockpiles of de-bacterial products in China at the first opportunity to supply healthcare workers who was fighting on the frontline of the epidemic. As of February 10, 2020, Unilever has donated six batches of supplies for epidemic prevention to five provinces and cities in China with a cumulative value of nearly RMB 4 million. The donated supplies include Weibao hand sanitizer and deodorant soap and so on.
- Cutting down All Counters in China, Will Maybelline Save itself by Private Traffic?
Maybelline was founded in 1917 and produced the world's first modern eye cosmetic, Maybelline Block Mascara. The Maybelline brand name is made up of Maybel, the name of the American chemist Williams' sister, and the second half of Vaseline. Maybelline was founded in 1917 and produced the world's first modern eye cosmetic, Maybelline Block Mascara. Today, Maybelline has become a brand that enjoys legendary global cosmetics pioneer. In more than 90 countries and territories around the world, Maybelline turned out to be a popular international brand among consumers. In 2002, Maybelline held 19% of the global market share. In China, Maybelline is positioned as a mass consumer product according to the "pyramid strategy" of Paul Gay, president of L'Oréal China. Maybelline once had a slogan: "Let every Chinese woman owns at least one Maybelline product". Unlike most international brands that enter the Chinese market only on the premium route, L'Oréal Group has introduced its popular brand Maybelline into China from overseas and continued its popular brand route with increasingly convenient purchasing channels and increasingly affable prices. With a deeper understanding of the Chinese market, Maybelline has repositioned itself. It seeks a better way for Chinese consumers both in terms of brand management and channel construction. Maybelline entered China in 1997. Then Maybelline has put a lot of effort into offline channels such as supermarkets and department stores considering this is the fastest channel to reach the masses China. The results have been remarkable. In less than five years, user loyalty of Maybelline has reached 75.31% and the overall competitiveness is also ranked first in the Chinese color makeup market. According to a report by WRI Research, market share of Maybelline in China was as large as 15.71% in 2011. It is worth noting that the sales of counters opened in department stores contribute more than 60% of overall sales in China. Subsequently, Maybelline has been introducing innovative products to the Chinese market all the time. For example, one concealer ("Eraser" called by Chinese people), which was introduced from abroad in the first half of 2017, became the No. 1 selling makeup product in Tmall flagship store and the No. 1 product in terms of offline recruitment and repurchase rate with 240,000 units sold on the Tmall platform during the promotional campaign on November 11st. The new lipstick, which was launched in the second half of 2017, also achieved great results with total sales reaching 40,000 units after its debut in Tmall. It sales exceeded 100,000 units in Tmall during the same promotional period. Maybelline, which laid out China's supermarket channel to approach mass consumers, is undoubtedly the educator of the enlightenment of China's makeup market. But more than 20 years have passed, young consumers had a higher pursuit of professionalism and richness in makeup and there are more and more brands to choose from along with the upgrading of consumption. In 2018, Maybelline completely withdrew from the supermarkets as well as department stores and other channels in China. The most direct reason for the adjustment of Maybelline's channels is the decline of traditional retail and the loss of department store counters. But the withdrawal of department stores and the layout of online and single-brand boutiques actually conceal the strategic adjustment of Maybelline from mass makeup to mid-to-high-end brand. With the battle of consumption upgrade, the retail market environment is changing dramatically. With e-commerce platforms making their hot debut and the atmosphere of traditional offline supermarkets going into the doldrums, more and more problems keep appearing such as declining sales, store closures, and rising entry fees year after year. In 2020, Maybelline once again cut down the offline channels which is a channel strategy adjustment made by Maybelline on its own initiative. Maybelline China said that the move to withdraw the Maybelline counters is a strategic transformation of the offline channel, which is based on considerations such as meeting consumer demand and further completing the shaping of the unique high street brand of Maybelline . Nearly 5 million offline users and hundreds of millions of dollars in annual revenue will be lost due to Maybelline's decision to shut down its offline counters. In order to reach this group of loyal users again and meet their buying needs, Maybelline started to do private traffic from last June. By now, the enterprise community in wechat has 120,000+ users and 200,000+ friends. The total user volume is greater than 200,000+. Maybelline started out by directly transferring users from the enterprise wechat of staff who left due to store closures to the private domain and there are nearly 40,000 users who enjoy high loyalty and spend more than 1,000 per month. The problem is that there are still nearly 4.96 million stock users who cannot be reached at scale. Later, Maybelline tried to contact this group of users manually by phone and the final conversion rate of adding fans was around one in a thousand. In December last year, Maybelline started to use AI voice phone to contact the remaining users. The connection rate reached 55%-60% in that time and the conversion rate was 4%. Compared with manual calls, AI voice calls are quite efficient. By the end of March this year, Maybelline had completed nearly 70,000 users into the group through AI voice calls. In 2018, Maybelline shut down Chinese superstores as well as department store channels. In 2020, Maybelline shut down Chinese offline counters. Maybelline in the Chinese market share has occupied by the rise of the Chinese makeup like Florasis, Perfect Diary and high-end makeup Lancôme, Dior and other brands step by step, which no longer have the former glory. In June 2020, Maybelline started to do private traffic. Will that be the way out for Maybelline to save itself?
- Introduction to Main Cosmetics E-commerce and Live Streaming Platform in China
1. Tmall Tmall, a business of Alibaba Group, is a B2C shopping website. At present, A total of 150,000 foreign and domestic brands have cooperated with Tmall. In the ‘Hurun Brand List 2020’, Tmall ranks the second with $75.803 billion. For the Tmall’s double eleven promotional campaign,Its transaction amount has increased from $5.417 billion in 2013 to $77.071 billion in 2020; In just seven years, The transaction amount of Tmall’s double eleven promotional campaign has an increasing for 14 times. In 2020, There had 3 cosmetics brand with $773 million sales in Tmall, and the annual sales of 42 cosmetics brands reached to $152 million. 2. JD JD is a well-known comprehensive B2C shopping platform renowned by fast delivery and genuine product guarantee. At present, The number of third partners and sellers that have signed with JD are more than 0.2 million. In 2020, It’s the fifth time for JD to rank in the ‘Global Fortune 500’, and ranked the 102nd, JD is also the member of Global Fortune 500 company. In the JD’ s double eleven promotional campaign on Nov 11th, 2017, the cumulative transaction amount reached $19.687 million, and then rose to $42.055 million in 2020. In 2021, more and more international brands such as Givenchy, Estee lauder and Clinique have opened online store on JD. 3. VIPSHOP Founded in 2008, VIPSHOP is a shopping platform that mainly sell discount brand products online. By the marketing strategies of ‘ brand discount+ flash sale+genuine product guarantee’, VIPSHOP creates a new mode of e-commerce, which is called as ‘Online Outlets’. Until 2020, its active users reached 83.9 million. In the ‘2021 Global Fortune 500’ VIPSHOP ranks the 104th. At present, There are 30,000 brands has cooperative relationship with VIPSHOP, and the sales volume of cosmetics brand has always shown positive growth. 4. Pinduoduo Pinduoduo is the third-party socializing e-commerce platform focusing on the C2M group purchase. Through the group purchase with families, friends and neighbors, The users can buy the high quality products with the lowest price. At present, There have 731.3 billion active buyers and 5.1 million active sellers on Pinduoduo. With the $225.636 billion transaction amounts per year, The Pinduoduo has become the second biggest e-commerce platform in China. In February of 2019, Pinduoduo was included in MSCI(Morgan Stanley Capital International), and in September of 2020, Pinduoduo has become the only partner that used the electronic red packet to interact with the audience in 2021 CCTV New Year's Gala. 5. Tik Tok Tik Tok is a new shopping platform. Through the short videos, live streaming and other interesting ways, Many creators can provide good, vivid and convenient shopping experience. In 2020, the GMV of Tik Tok’s e-commerce business are more than $77.4 billion, which is 3 times than GMV of 2019. In the promotional campaign on Jun 18th, 2020, There has 7 cosmetic brands with sales of more than $7.74 million , and 22 cosmetic brands with sales of more than $3.096 million. 6. Kuai Shou Kuai Shou is a consumption and live streaming platform, which means that consumers can go shopping while watching the live streaming. There have 0.1 billion active e-commerce users, and 1 million+ accounts have the potential operation behaviors. In 2020, The total commodity transaction amounts is $59.009 billion, the repurchase rate is as high as 65%. In terms of its total commodity transaction amounts, Kuai Shou is the second largest e-commerce live streaming platform in the world.
- Why SK-II is “Holy Grail” for P&G in China
In 1980, the SK-II brand and trademark were acquired by P&G and licensed to P&G in Japan for full production of the brand. SK-II is a high-end cosmetic and skin care brand from Japan popular in East Asia and Southeast Asia, etc. In 1980, the SK-II brand and trademark were acquired by P&G and licensed to P&G in Japan for full production of the brand. Its main ingredient PITERA™ represented key highlights of the brand. Since the launch of its first skincare product in 1980, SK-II has been a pioneer in combining cutting-edge technology with pure natural extracts into skincare products and it have released many groundbreaking products. With the rise of the younger generation putting new powerful impetus into the market, the Chinese cosmetics market keeps making a shift in consumer base. SK-II, which was born in Japan, as the age of 46, has turned to a popular skincare brand worldwide. Its rapid growth in China is driven by growing demand of Chinese consumers for skincare and the trend of consumer upgrading.+ On October 20, 2020, international household chemical giant P&G announced its fiscal results for the first quarter in 2021 (July-September 2020), with its sales reaching approximately US$19.3 billion. P&G has gained a lot in China market. Its star brand represents the main part of its economic growth thus SK-II sales in mainland China increased by more than 20%. SK-II has become one of the largest brands in the international beauty category in terms of volume since its entry into Jingdong(JD: one of China's most popular comprehensive shopping sites) in 2015. It has since grown by over 70% year-on-year for three consecutive years which has been leading the beauty category in sales growth and broke several beauty brand records. In SK-II online flagship store on Tmall (Tmall: one of China's most popular comprehensive shopping sites), a facial skincare kits at the price of 107.08 dollars enjoyed sales volume of more than 20,000 pieces as of October 21, 2020. In addition, more than 4,000 people booked the "Double 11 Rush" event. SK-II ranked sixth in the 2020 Tmall Top 10 beauty list with sales of $144 million in the promotional campaign on November 11, 2020. Benefit from innovation strategies and the push of the duty-free business including Hainan, SK-II product sales grew by more than 30% in the fourth quarter in 2021 (April-June 2021). In addition to the sales contribution from Hainan Duty Free, it has also performed well online. During promotional campaign on June 18 in 2021, SK-II ranked 8th in the Tmall beauty brand. (Tmall Beauty: an independent beauty vertical marketplace on the Tmall platform) Both the SK-II - Facial Treatment Essence 2021 New Year Limited Edition and SK-II - Facial Treatment Essence Tokyo Girl Edition, which debuted on both platforms in March, achieved impressive results, with 44,000 units of the New Year's Limited Edition released in January sold. SK-II has promoted a lot of brand marketing strategies due to connect more closely with Chinese consumers and make them relate to the brand. Since 2015, SK-II has been promoting its brand values through films for the first time. Later, they have produced many films from the first film "Ballerina" to the popular "She Ended Up in a Blind Date" using stories to connect with consumers and pay tribute to women who are brave enough to change. In August this year, SK-II also re-enacted the advertisement of the classic products Shen Xian Shui from years ago with its long-time global ambassadors Tang Wei and Ni Ni. It also launched a new documentary series, "My Story with PITERA". Through behind-the-scenes emotional expressions and conversations, Tang Wei and Ni Ni share their life journey and transformation and feelings of skin condition from using their first bottle of SK-II Shen Xian Shui. PITERA and Facial Treatment Essence have become core brand assets of SK-II . (Shen Xian Shui: refers to SK-II Facial Treatment Essence) Since SK-II entered the Chinese market in 1998, it has established a long-lasting emotional connection with Chinese consumers who have given the product the affectionate nickname "Shen Xian Shui" due to its claimed effectiveness in improving skin. Especially with the rapid development of social media in China in recent years, the word-of-mouth effect has further increased Chinese consumers' awareness of "Shen Xian Shui". As with a century-long brand iteration of research, development and marketing of its iconic products, continuous promotion of its star products, PITERA™ and Shen Xian Shui, is clearly one of the most important brand goals for the past, present and future for SK-II.
- L’Oreal Paris: How a Foreign Brand can Become TOP in China
In 1907, Eugène Schueller invented the world's first non-toxic synthetic hair dye and named it L'Oréal at his age of 28. Since then, hundred years has passed with great change of the world but L'Oréal Paris has never stopped its constant pursuit of scientific research and innovation. Today, products of L'Oréal Paris have expanded many fields from hair dyes to women's skincare, color makeup, women's shampoo and household hair care, hair color in home, men's skincare, men's shampoo and styling and so on. L'Oréal Paris selects the glamorous celebrities from all over the world to form the "Dream Team" which dedicated to telling the story of "Beauty without Borders" from different perspective and make the concept of "Because I'm Worth It" as a classic. Each of the ambassador L'Oréal Paris boasts outstanding careers and extraordinary personalities such as Jane Fonda, Helen Mirren, Gong Li and Chris Lee(Chinese name: Li Yuchun) who perfectly interpreting the brand concept of "Because I'm Worth It". In 1997, L'Oréal Group and its brand entered China. In 2009, the sales of L'Oréal Paris in the Chinese market exceeded $465 million. According to public data, L'Oréal Paris doubled its sales in China to reach $931 million in 2012. Since then, it has become one of the largest beauty brand in the Chinese market and it has been firmly on top of the list. In 2016, China has turned to the second largest market for L'Oréal Paris, which ranked in the top three of the Tmall beauty hot brands list in November and won the award of “2016 China National Brand Daily Cosmetics”. (Tmall Beauty: Tmall Beauty is an independent beauty vertical market on the Tmall platform, which is one of the most popular comprehensive shopping sites in China) In 2017, L'Oréal Paris, which has been teamed up with the Cannes Film Festival for 20 years, launched the Cannes Stars Commemorative Lipstick about four ambassador - Gong Li, Chris Lee(Chinese name: Li Yuchun), Jing Boran and Guan Xiaotong - and sold it exclusively on Tmall. The sales volume of it reaches nearly 30,000 units on Tmall Super Brand Day. (Tmall Super Brand Day: an promotional campaign conducted by Tmall in conjunction with its merchants, in which the participating merchants set their own "brand day" for the year.) In 2018, marketing campaign created by L'Oréal Paris named "Challenge of no wrinkles" gained 500 million + exposures on the Chinese network. The eye cream of this campaign named "Zi Yundou" in Chinese became the No.1 new product in Tmall beauty in 2018. (Zi Yundou means Purple Iron in English. It is the popular eye cream of L'Oreal Paris. Because the packaging is purple. The consumer hopes that this eye cream can be like an iron to wipe to iron out wrinkles, so its nicknamed is purple iron) In the promotional campaign on November 11, 2019, L'Oréal Paris was among the Tmall RMB1 billion club, (RMB1 billion: RMB 1 billion converted to $155 million) and came to be the No.1 beauty brand. In May 2021, L'Oréal Paris opened its first global offline flagship store in Shanghai, China. It has won the "Sales Champion" of Tmall and JD Beauty during the promotional campaign on June 18, 2021 again. (JD Beauty: JD Beauty is an independent beauty vertical marketplace on the JD platform which is one of the most popular comprehensive shopping sites in China) L'Oréal Paris has been developed in China for 24 years. With the aim of providing consumers in China and Asia with the proper products for hair care, skin care and color cosmetics, its parent company, L'Oréal Group, has established the China R&D and Innovation Center in Shanghai specializing in the research and development of Chinese skin and hair as well as raw materials and formulations. The R&D and Innovation Center has become the largest R&D facility of the L'Oréal Group in Asia Pacific ranking among the six largest R&D hubs worldwide. In addition to this, L'Oréal Paris has been committed to environmental protection in China. Currently, L'Oréal Paris uses 100% recycled plastic in the PET bottles of all hair care products sold in Asia Pacific; the goal is to use full recycled plastic in the bottles of all hair care products sold in the region by the end of 2021. In 2020, 132 tons of glass were saved from the production in its plant, Beautycos International Co., Ltd., in Suzhou and 80% of the industrial water was recycled in the production of color makeup at its plant, Yichang Tianmei International Cosmetics Co., Ltd.. In mainland China, all products of L'Oréal Paris produced in the two plants completed carbon neutral. During the promotional campaign on May 5 in 2021, L'Oréal Paris opened its global flagship store "Shanghai Beauty Hall" in Shanghai, China. The store boasts a environmental design concept with sustainable materials to help the development of sustainable retail. By the end of 2021, L'Oréal Paris will dispatch more than 20 million parcels that are all recyclable with tape-free, easy to tear and biodegradable. Besides that, L'Oréal Paris also launched the "Empty Bottle Project of L'Oréal Purple Iron" which has covered more than 1,000 department stores and boutiques in China.
- Nivea: Why Chinese Consumers are Raving about It?
Nivea is a major global skin and body care brand owned by Beiersdorf. Its first products is an oil-based emulsion skin ointment named EUCERIT that was the first stable emulsion of its category. Nivea is a major global skin and body care brand owned by Beiersdorf, a German company founded in 1911. Its first products is an oil-based emulsion skin ointment named EUCERIT that was the first stable emulsion of its category. The owner, Oskar Trop lowitz, named the company NIVEA, which was inspired by the Latin word niveus,-a,-um (means white as snow). In Europe, Nivea has become the representative of skin care. Nivea products in the categories of body care, face care, sun care, lip care, personal cleansing and men's skin care already have a large market share in Europe. In December 2018, Nivea was listed The World's 500 Most Influential Brands in 2018 ranking 204th. Nivea officially entered the Chinese market in 1994. With the good reputation that Nivea has built up in China since the 1920s and in line with the scientific and rigorous entrepreneurial spirit of Beiersdorf AG, Nivea has become the skin care brand that Chinese consumers are willing to get to know and use it in just eight years. In 1994, Nivea (Shanghai) Co., Ltd. was established as a joint venture between Beiersdorf and another Chinese company. In February 2001, Nivea (Shanghai) Co., Ltd. turned into a wholly owned subsidiary of Beiersdorf Germany in official process. It can be traced back to 1930 when Nivea moisturizer in blue tubes firstly entered the Chinese market and soon spread throughout major pharmacies and department stores in Shanghai, Tianjin, Beijing, Hankou and Guangzhou. In a short time, it became a skin care product for all ages and all seasons. When China implemented the reform and opening up in the 1980s, Nivea represented the first international skin care brand to return to China. In 2007, Nivea's parent company, Beiersdorf, acquired an 85% stake in C-BONS Cosmetics, a subsidiary of the Chinese company C-BONS GROUP, for $374 million. Chinese shampoo and personal care brands such as Slek and Maestro were also acquired. On October 8 in 2018, Nivea Men released a customized energetic gift box which was exclusive launch in JD Beauty for the new ambassadors. All 20,000 sets were sold out after its launch thus it ranked No. 1 in JD Beauty Men's Skin Care Set on October 8. (JD Beauty: an independent beauty vertical marketplace on the JD platform, which is one of the most popular comprehensive shopping sites in China) On the day of professional campaign named JD Super Brand Day, total transaction amount on October 15 in 2018 of Nivea Jingdong Self-operated Flagship Store was three times as the total sales in the promotional campaign on June 18 in the same year and the 2,000 sets of WAKE UP special gift boxes especially for live were all snapped up within three minutes. (JD Super Brand Day: an activity carried out by JD in conjunction with its settled merchants, in which the participating merchants set their own "brand day" for the year; JD Self-operated Flagship Store: Stores opened by JD. The logo of JD self-owned will be appeared below the store name in the website.) In 2019, Nivea achieved sales growth of 4.9% in the first quarter. At the onset of the epidemic in 2020 , Nivea sales declined organically by 6.0% year-on-year. Nevertheless, it maintained a firm position in all categories worldwide and achieved increase of market share in more than half of the countries. Nivea has also adjusted the layout of its brand strategy and put more energy into the research and development of new products with the aim of meeting demand of more high-end consumers in first-tier cities and serving people from different level. First of all, Nivea divide into three categories of market channels in China, the first of it is the new channels mainly for young consumers such as e-commerce, Watsons, etc and the selling products enjoys new and noble style. The second one is the traditional channels mainly for ordinary consumers such as Wal-Mart, RT-Mart and other traditional stores, and the products should have high quality. The third one is the bottom market including rural consumers and the products are good cost-effective. In the next step, Nivea launched first Essence Intensive Maintenance Ampoule “Lock Fresh Small Q Bottle” containing coenzyme Q10 in 2020. The birth of this product was significant for Nivea further promoting the implementation of a consumer-focused and layout strategy for the women's skincare category. Not only that, Nivea's parent company Beiersdorf launched its accelerating program NX China into the Chinese market with the aim of selecting promising emerging brands for investment in the Chinese market in 2021. Besides that, Beiersdorf has established its second largest R&D center in Shanghai in addition to its German headquarters, which will support new product development in Northeast Asia with a focus on the Chinese market as well as in emerging markets.