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Online fame makes niche brands popular

By Zhu Wenqian | China Daily | Updated: 2018-07-25 10:48
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A customer tests cosmetic products at a Tmall pop-up store in Tianjin. In recent years, the majority of international makeup brands' sales have come from Chinese e-commerce websites such as Tmall and JD. [Photo by Niu Jing/For China Daily]

Smaller overseas cosmetic brands have found business opportunities in China by harnessing the promotional power of social media and online recommendations.

Alibaba Group Holding Ltd's Tmall e-commerce site said such brands contribute the majority of online sales growth for its makeup category, and most hit products come from smaller brands previously unknown in China.

"Chinese consumers are more willing to spend money on cosmetics and skincare products, and more people are paying attention to the quality of products," said Neil Wang, president of consulting firm Frost & Sullivan China.

"The younger generations also tend to identify with recommendations from internet celebrities and makeup bloggers online," Wang added.

"Internet celebrities are more knowledgeable about makeup products because of their work. They share user experiences and give good evaluations on some niche products, so consumers get to know them. But product quality and personal preferences ultimately impact decision-making," he said.

Originally, overseas brands would usually export their products through third-party agencies and sell through imported goods supermarkets in China, such as city'super and Ole'.

In recent years, the majority of international makeup brands' sales come from e-commerce websites such as JD, social shopping app Xiaohongshu, and NetEase Inc's cross-border e-commerce site Kaola.com, or through official direct purchases.

Consumer goods giant Unilever Plc earlier acquired high-quality makeup brand Hourglass, and launched an overseas flagship store for the brand on Tmall. Unilever also added skincare brands Murad and REN to its portfolio in 2015, and plans to launch overseas flagship stores for the brands on Tmall.

Isdin, a Spanish cosmeceutical brand, netted 85 percent of its Chinese sales from Tmall last year.

Wang said that for niche and new brands, securing recommendations from pop stars or internet celebrities with armies of followers would have a significant impact among their fans. Brands' business growth would grow further if they can understand consumers and identify the right individual influencers, he said.

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