April 19, 2024

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What Occurred: Native and worldwide magnificence manufacturers are eyeing short-video app Douyin for development in China. 

In keeping with knowledge intelligence platform Feigua, the general gross merchandise worth (GMV) of magnificence manufacturers on Douyin has exceeded $10.6 billion (76.6 billion RMB). Notably, L’Oréal topped a rating of name gross sales within the first half of the 12 months, hitting a GMV of 1 billion RMB ($140 million). The French cosmetics model is anticipated to surpass a GMV of two billion RMB ($278 million) by the tip of 2023.

Among the many high 10, home and international names are evenly distributed. Chinese language magnificence labels Hanshu and Proya claimed second and fourth place, respectively, on the record — beating international giants Estée Lauder, Lancôme, and Helena Rubenstein. 

Among the many high 10, home and international names are evenly distributed. Chinese language magnificence labels Hanshu and Proya claimed second and fourth place on the record. Picture: Proya’s Weibo

The Jing Take: Douyin is the nation’s latest retail battleground, reshuffling China’s magnificence panorama. Each established corporations and upstarts are studying the way to leverage the platform and conquer the hearts of its customers. Although native gamers have the house benefit, it’s clear that worldwide manufacturers are actively combating to develop their market share. 

Take L’Oréal, the winner of Douyin’s magnificence class, for example. The model formally joined Douyin’s e-commerce enterprise in Could 2021. By means of Douyin’s Tremendous Product Day, L’Oréal secured a complete GMV of $3.4 million (22 million RMB) inside every week. In the meantime, a single livestream session in collaboration with homegrown star Zhu Zixiao garnered a GMV of over $2.2 million (16 million RMB).

With the rise of China’s Gen Z, social platforms like Douyin have gotten pivotal channels for manufacturers to shut the loop in digital commerce, from advertising to potential buyers to immediately promoting to them. 

L’Oréal collaborates with roughly 800 to 1,500 Douyin KOLs each month. Picture: L’Oréal’s Weibo

L’Oréal collaborates with roughly 800 to 1,500 Douyin KOLs each month, starting from mega influencers with over 5 million followers to small-to-medium key opinion shoppers, to advertise its merchandise and livestreaming classes. Within the first half of 2022, L’Oréal’s Douyin GMV exceeded $33 million (238 million RMB). This 12 months, the sweetness big has quadrupled this quantity, indicating the large potential of the short-video platform. 

In 2021, e-commerce drove as a lot as 80 p.c of L’Oreal’s income in China. Taobao accounted for half of e-commerce gross sales, adopted by JD.com at 15 p.c, WeChat at 8 p.c, and Douyin and different on-line channels at about 7 p.c. 

If this momentum continues, it received’t take lengthy for Douyin to turn into one of many main development drivers for L’Oréal. Nonetheless, whether or not the French home can preserve its primary place whereas others vie for dominance on the app is one other story.

The Jing Take experiences on a chunk of the main information and presents our editorial crew’s evaluation of the important thing implications for the posh trade. Within the recurring column, we analyze the whole lot from product drops and mergers to heated debate sprouting on Chinese language social media.


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