ASIA
China to become the world’s largest Beauty market by 2020 Digital benchmarking firm L2 Inc. releases its 4th annual Digital IQ Index: Beauty China 2017. The L2 report benchmarks the digital performance of 98 Beauty brands operating in China across the Fragrance, Skincare, and Color Cosmetics categories. The report features data-driven insights and analyses of key search, social, and e-commerce platforms including Tmall, JD.com, Jumei, VIP.com, Weibo, WeChat, Baidu, and Miaopai. Index brands are ranked using L2’s proprietary Digital IQ Index methodology classifying each of the 98 brands as either Genius, Gifted, Average, Challenged, or Feeble. “China is expected to become the world’s largest Beauty market by 2020,” according to Danielle Bailey, head of APAC research at L2. “In the last five years, online Beauty sales channels have rapidly expanded, cross border e-commerce and makeup are increasingly popular categories, and consumer preference is shifting to higher-end goods.” The report analyses various key segments within the sectors including skin care, colour cosmetics and fragrance companies. A large selection of some of the country’s most notable e-commerce and social media brands including Tmall, JD.com, Jumei, VIP.com, Weibo, WeChat,
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research at L2. “In the last five years, online beauty sales channels have rapidly expanded, cross-border e-commerce and makeup are increasingly popular categories, and consumer preference is shifting to higher-end goods.”
Increasingly, companies are looking to propel their brand awareness potential and strengthen their identities through connecting their offline marketing activities with online efforts.
Consumers are willing to increase their spend on premium brands — those deemed high-quality and with a strong reputation — as these rose in popularity in 2016 compared to mass brands. The former achieved five times more search volume and 16.5 times higher the number of brand term searches. While the average Digital IQ percentile rank fell more than 15% for mass brands, prestige brands were up by 9%.
Labelling brands by their level of digital expertise provides a standardised measure for both consumers and companies, alike. This enables them to measure their proficiency against their competitors and revise their marketing and advertising initiatives accordingly. China is a leading global nation when it comes to beauty manufacturing, retail and sales, and “is expected to become the world's largest beauty market by 2020”, according to Danielle Bailey, head of APAC
While it’s true that consumers demand luxurious products that are based on success, wealth and influence, their need for convenience is still important as more shoppers turn to their digital devices to complete purchases. The number of users exploring e-commerce beauty platform, Jumei, has increased by 87% since 2014, with the brand adoption of Tmall up by 57% and JD.com by 240%. In recent years, the messaging and calling app, WeChat, has positioned itself as
Baidu, and Miaopai are awarded the status of either genius, gifted, average, challenged or feeble.
International Cosmetics News | February 2017