E-commerce platform opens 'first store' and small number of beauty brands

More and more small cosmetics brands of first finance and economics take the lead in opening "first store" through tmall global. In China, such old brands as L'Oreal, Estee Lauder and Shiseido have become a famous brand after years of deep cultivation. However, how can those new faces springing up to expand a new and unfamiliar overseas market?

Tmall global is becoming a touchstone for a number of overseas small brands. In recent years, the trend of consumption upgrading of imported beauty make-up has become more and more significant, and the small number of beauty make-up brands that meet the trend of segmentation and personalized needs have an explosive growth in tmall global. Lu Qiao, head of beauty industry of tmall global, said that the small beauty brands growing up in tmall global have a strong attraction for large groups, and a new international beauty track is forming. It is reported that in order to tap the potential Chinese beauty market, more and more small beauty brands take the lead in opening "first store" through tmall global. The "first store economy" effect of the platform has accelerated the growth of these brands, and tmall global has become the "barometer" of the acquisition of large FMCG. Take the drunk image of American brand as an example. It entered tmall global in August this year. Now it has attracted nearly 30000 brand members. The turnover has increased nearly 62 times. The average unit price of goods is no less than 400 yuan. In October, Shiseido announced that it would use $845 million to win the drunk elephant. But this is not typical. Prior to the acquisition by Unilever, AHC entered tmall global in 2016, and this "black horse" has been the No. 1 sales volume of tmall double 11 international cosmetics brand for three consecutive years. In September 2017, AHC's parent company was acquired by Unilever. Another typical representative of the successful breakthrough by tmall global is Chengye doctor. In 2013, Chengye opened its first store in the mainland of China in Gaodao house, Shanghai, but withdrew from China soon after due to strategic mistakes. In February 2017, Chengye doctor entered China again, and changed to settle in tmall global in a cross-border mode. With more than 10 SKUs, the sales volume of the brand increased 15 times in three months, and 300000 bottles of star single products were sold in total. Strong growth of Chengye doctor in China has driven Johnson & Johnson Group to accelerate the layout of its parent company. In October 2018, Johnson & Johnson Group, which originally only held 19.9% of CI: Z holdings, the parent company of Chengye doctor, decided to acquire the remaining shares with 14.3 billion yuan, and fully pocket CI: Z holdings. There is a consensus in the industry that Chinese consumers are the most receptive group of people in the global market today. They have contacted these new brands through the Internet and are willing to place an order to try. With the product positioning of segmentation and personality, niche beauty brands are loved by millennials in the Internet era. But after 95, young consumers have grown up in tmall global. The strong demand of this group for unique, personalized and meticulous beauty products has boosted the growth of imported small number of beauty products.

More imported minor beauty brands pay attention to the platform service ability and value of tmall global, and actively reach Chinese consumers through tmall global. According to Luqiao, more than 100 niche beauty brands will successively enter tmall global in the next year. These niche brands will leverage nearly 10 billion market share of China's beauty market in the next two years, and the annual growth rate will maintain more than 50%.