Cosmetics in China: strategies that lead to success

Cosmetics in China: A market like no other

When we talk about the global cosmetics market, it’s impossible not to mention China.
With a population of over  a billion people and a growing middle class, China represents a golden opportunity for cosmetic brands around the world. So what’s the reason for this? An insatiable thirst for beauty products, combined with unprecedented digitalization, that is the definition of cosmetics in China.

Understanding the Chinese market: A Unique Universe

Chinese Consumers: A unique profile

Diving into Chinese cosmetics means discovering a world where consumer preferences and behaviors are clearly different from those in the West. Chinese consumers, with a keen eye for quality and innovation, are in constant search of products that not only meet their needs but also reflect a certain social status. This explains why international brands enjoy notable popularity, with consumers often associating high prices with top quality.

Read our article on Chinese consumer behavior and targeting if you would like to learn more about this topic.

Brand Loyalty in China

Contrary to popular belief, brand loyalty is indeed present in China. Once a Chinese consumer is seduced by a brand, their attachment can prove lasting, provided that the quality and innovation are there. This loyalty is accompanied with attraction for luxury and international brands, perceived as a guarantee of prestige and excellence, whichwe’ll talk about shortly.

But It’s also important to know that Chinese consumers are also known for their desire to experiment and test different brands, which creates a dynamic and competitive market environment. This pushes companies to always reinvent themselves and‘adapt to developments to maintain their competitive advantage and not be overtaken by their competitors.

The attraction to luxury

The craze for luxury and international brands is particularly notable in China. These brands are perceived as symbols of prestige and excellence, offering not only beauty products but also a desirable social status. Just wander aroundany Chinese city to observe that a large number of Chinese women carry a Gucci, Channel, or Louis Vuitton bag.

This phenomenon is amplified by the highly developed digital culture in China, where online reviews and recommendations from KOLs (Key Opinion Leaders) have a considerable impact on purchasing decisions.

Current cosmetic trends in China

The Rise of the “Skintellectuals”

The Chinese cosmetics scene is witnessing a revolution led by “Skintellectuals” – a term for informed consumers with in-depth knowledge of dermatology and cosmetic ingredients.

These consumers are not satisfied with trendy products; they look for effective formulations, backed by science. This trend towards more enlightened beauty promotes the popularity of cosmetics products, which combine aesthetics and therapeutic benefits, thus addressing specific concerns such as acne, skin aging, or even protection against pollution. 

It is therefore essential for brands to continue to innovate in this area and to meet consumer expectations by being transparent about the composition of their products and their benefits.

Naturality in Force

In China, and more broadly in Asia, concerns related to skin aging and the harmful effects of pollution are increasingly emerging.

Previously, Chinese purchasing decisions were strongly influenced by brand awareness. However, an emerging trend shows growing consideration for the composition and benefits of the products.

This evolution is seen in the success of brands advocating “clean beauty”.

For example, the Cha Ling brand, which is part of the LVMH group, combines Chinese aesthetics with French excellence, offering tea-based treatments recognized for their anti-aging and restorative properties.

Recently, awareness of the consequences of constant pollution in large cities on health and the epidermis has sparked increased interest in more environmentally friendly alternatives. This is explained by a growing demand for organic, vegan, and natural cosmetics, terms such as “natural”, “ecological”, And “pure” becoming popular keywords on social media.

This movement towards naturalness and ecology is gaining ground. These “green” products align with the values of the new generation, eager to consume responsibly.

Cosmetics for Men and Functional Care

In recent years, a relatively new phenomenon has gained momentum in China, contrasting with Western trends: the growing interest in wealthy young men for personal care, a trend particularly visible in large cities, detailed here.

Chinese men are also emerging as an important target for the cosmetics industry. Influenced by pop culture and K-beauty, they are adopting elaborate skincare routines, propelling the demand for tailored male cosmetics and functional skincare.

According to a study by the Korea Trade Association in May 2021, the men’s cosmetics sector in China and Asia more generally has experienced average annual growth of 7.7% for four years, reaching 16.7 billion Yuan (approximately 2.6 Billion dollars) in 2020.

The 18 to 25 age group dominates this market, representing 59.5% of total consumption, followed by 26 to 30 year olds with 21.3%. Young consumers favor lip balms, facial cleansers and shower products, while those aged 26 to 30 are moving towards sunscreen and facial masks. As for 31-40 year olds, their choice is targeted products such as anti-wrinkle eye contour masks and anti-aging care.

Effective Marketing Strategies

Integrate Xiaohongshu, Douyin into a multi-channel digital strategy

In the dynamic world of cosmetics in China, the importance of a solid presence on social networks such as Douyin (TikTok) and Xiaohongshu is indisputable. These platforms are not only spaces for sharing and discussion for consumers; they represent real showcases for brands, allowing them to engage directly with an audience hungry for new beauty products and trends.

Xiaohongshu, often called the “Chinese Instagram”, is the ideal playground for brands who want to highlight the aesthetics and history of their products through captivating visuals and engaging stories as we explain through this article.

Integrating these social networks into a digital strategy is essential for brands that want to conquer the Chinese market.

This not only allows them to gain visibility but also build a relationship of trust with their audience by providing relevant content and interacting authentically.

In short, a strong presence on the main Chinese social platforms is a powerful lever for penetrating the market, understanding consumer expectations and integrating them into an effective overall marketing approach.

The Key Role of KOLs

The Chinese digital ecosystem is evolving at breakneck speed and the influence professions have followed suit. Therefore, the Key Opinion Leaders (KOLs) often called “Influencers” Or “Content creators” in France are essential vectors of influence for all brands wishing to sell products or services online.

This emerging phenomenon of live streaming in China caused a lot of talk when a Chinese streamer sold more than 100 million Yuan (12.7 million‘Euros) in the‘space of‘a week by presenting each product for no more than 3 seconds. (A Chinese Streamer sells 100 million Yuan of products in 1 week).

These social media celebrities don’t just promote products; they share their authentic experience, thus creating a relationship of trust with their subscribers. Successful brands in China often integrate KOLs in their marketing strategies to gain visibility and credibility.

If you want to learn more about how to sell on Douyin, read our article Selling in China on Douyin

Understanding the Chinese market and communication

Understanding and respecting cultural differences is essential to communicating effectively in China. Marketing campaigns must be designed with visuals and messages that resonate with local consumers.

Indeed, China is known for having beauty standards very different from Western beauty concepts. In the Middle Kingdom, white skin, double eyelids, a thin nose, a melon seed face shape” (瓜子脸 – guā zǐ liǎn), thinness and cuteness are the most sought-after criteria.

If you are interested in beauty criteria in China, take a look through this article: Beauty criteria in China.

Furthermore, the quality of visuals is particularly important, as Chinese consumers are very receptive to the aesthetics of advertisements and products. A neat and high-end visual presentation can greatly influence the perception of the brand and its attractiveness.

Brands must therefore adapt in the products launched and in their communication to meet the expectations of Chinese consumers.

Cosmetics in China, a Market of Challenges and Opportunities for Foreign Brands

Overcoming cultural differences for foreign brands

The Chinese cosmetics market, while attractive, presents a number of challenges for foreign brands. The first barrier is often cultural.

Understanding and adapting to the specificities and preferences of Chinese consumers requires in-depth study and an adapted communication strategy. China is no longer an El Dorado where you just need to invest to succeed. It is obligatory to understand the codes and the overall functioning of the Chinese market to avoid failure and painful disillusionment.

Moreover, the emergence of new local brands promotes fierce competition in the cosmetics market between international brands and local brands, increasingly appreciated for their quality and their suitability to local tastes.

Government regulations on the import and marketing of cosmetic products can also represent a significant barrier and therefore entry into the Chinese market is difficult.

Digital in China, seizing Opportunities in the Cosmetics market

However, the Chinese market is also full of opportunities. The rise of e-commerce, live-streaming and social networks/platforms like Xiaohongshu or Douyin offer foreign brands powerful channels to directly reach and engage their target audience.

Collaborations with KOLs, who enjoy great influence in China, can also be an effective way to gain consumer trust and increase brand visibility in the long term or during advertising campaigns.

In addition, Chinese consumers’ appetite for foreign brands that know how to differentiate themselves through their quality and innovations represents a great opportunity for them, if they are ready to adapt and innovate to remain competitive against Chinese brands which are gaining ground.

Adapting to the specificities of the Chinese market

Finally, the key to success for foreign cosmetics brands seeking to establish themselves sustainably in China lies mainly in their ability to understand and adapt to market nuances. This involves immersion in Chinese culture, customization of marketing strategies to meet local expectations, and authentic engagement with consumers across popular digital platforms in China.

An approach adapted to the complexity of the Chinese market is not just a question of marketing strategy, but a necessity for any cosmetic brand aiming to establish itself in China. Brands capable of deciphering and aligning with local expectations have everything to gain : sustained growth and a solid position in one of the most dynamic and expanding markets in the cosmetics sector in the world.