BeautyMatter’s Post

As brand's look for growth global expansion is at the forefront of distribution strategies. Research from McKinsey & Company suggests that e-commerce is the fastest-growing channel for beauty brands at approximately 12% per year, with the global market expected to reach nearly $600 billion by 2027. Tips For International Growth: ✨ Analyze Market Size and Prioritize by “Friction” ✨ Gauge Pre-Existing Demand for Your Brand ✨  Determine Cultural Fit and Ranging Strategy ✨ Understand Regulations by Region ✨ Choose a Partner and Define Your Strategy ✨ Set a Localized Pricing Strategy ✨  Create Demand with Advertising ✨ Consider NARF and Other Pan-Continent Solutions ✨ Look into FBA Export ✨ 10: Rinse and Repeat As you see success and growth in one region, you can use the same roadmap to inform the next market. #ecommerce #beautybrand #growth #distribution #sponsored

Online shoppers go wild for beauty products. 💋 Beauty ranks among the top 4 online shopping categories worldwide and the global beauty industry has a market size of $579 billion, growing nearly 8% YoY. 💋 China and the U.S. are the two biggest markets for online beauty revenue, accounting for $10.4 billion and $9.28 billion, respectively. 💋 According to Lisa King, founder, Imagine Beauty, LLC, "Winning brands understand that today establishing a strong brand presence on Amazon is critical." See how else U.S. and Chinese beauty brands and retailers are capitalizing on the global online beauty boom. #retail #ecommerce #beauty #China #MadeintheUSA Florasis PerfectDiary Global SKINTIFIC Tmall Global Taobao Marketplace JD.COM Little Red Book L'Oréal Shiseido Amore Pacific Cosmetics Estée Lauder Unilever SkinCeuticals OBAGI COSMECEUTICALS LLC Walmart SEPHORA Ulta Beauty Instagram TikTok

WeChat Channels: Reshaping Luxury E-Commerce with $14B Forecast! Discover how this platform is revolutionizing luxury brand strategies in the digital age. #WeChatChannels #LuxuryECommerce #DigitalMarketing #TencentInnovation #BrandStrategy #OnlineSalesBoost #ECommerceRevolution #LuxuryBrands #WeChatMarketing #TechTrends2024

Total sales from China's #618 shopping festival are down 7% YOY. Are Chinese consumers becoming numb to mega sales events like 618? 🤔 Here are some key takeaways from WalktheChat - AI-powered China Marketing Social Report from this year 👇 🛍️ Total Sales & Platform Performance - 742.8 billion RMB, marking a YOY decline of 7%. JD.com: Achieved a significant 32% YOY increase, driven by enhanced marketing and strong interest in 3C products. - Pingduoduo (PDD): Emerged as a key player, reflecting a consumer shift towards more cost-efficient options. 🛠️ Consumer Behavior - Pragmatism: Feedback indicates a shift towards practicality, with low motivation for purchases despite frequent promotions. - Historic Low: 618 event sees a 7% revenue dip, but JD & PDD excel in social discussions. 💄 Beauty Sector - Western Brands: Lead conversations, with L’Oréal Group at the forefront. - Chinese Brands: Only 2 in the top 20, down from 6 during Double 11, indicating rising competition from Western brands. 👟 Apparel & Footwear - Outdoor & Sportswear: Leading the sector with 4 Chinese brands in the top 10. - Local Brands: Urban Revivo makes a notable entrance, while comfort-focused Ubras and Bananain outperform major players like Lululemon. 🏠 Household Appliances - Cost-Efficiency: Consumers prefer Chinese brands over premium international labels, with 8 out of the top 10 most discussed brands being Chinese. 📥 Get the full PDF report in the link for a detailed analysis! #Ecommerce #618Event #ConsumerTrends #ChinaMarket #ConsumerBehavior #JD #PDD

Beauty E-Commerce Is Broken. Once thought of as long-term disruptors who would change the way we shop forever, multi-brand online retailers that sell cosmetics, skincare and fragrance are facing multiple headwinds. “Digital commerce is much less profitable than people originally expected it to be five years ago,” said Benjamin Bond, vice president of strategy and business development at store intelligence platform Simbe. NET-A-PORTER has cut down its selection from over 200 beauty brands in 2022 to just over 70 today, with a further slimming down expected for brands – many of the lines already removed from the site were generating less than $150,000 a year in sales. To beat the odds, e-tailers need to either offer a truly unique proposition, or consider a more phygital approach. “If you want to sell beauty online, you need to offer samples, you need to do events, you need to create content … you must make the consumer experience unique. Online retailers are then forced into a near-constant battle of promotions, with each online store discounting further to convince consumers to shop with their outlet. In order to get ahead from the pack, retailers need to offer a clear point of differentiation. They also need to be seen as a beauty authority, and a space for discovery. This is harder as influencers have become storefronts in their own right. #beautybusiness #ecommerce #beauty #skincare #cosmetics #sephora #luxury #retailbusiness #branding #tocca #oakville #nyc #toronto

A Couple of weeks ago i came across a very Interesting Framework to understand competitive advantage in different stages of market evolution and Hence a key learning was to see how Business Models evolve along the way. It Goes like this as below and can be applied to Almost any Industry - I will try to explain it with respect to Retail and Fashion industry and let the Framework Tell us where Shien is as compared to Others - 1)When Distribution is proprietary, distribution wins 2)When Distribution is commoditized, best product wins 3)When Product is commoditized, best service wins 4)When Service is commoditized, best network wins In the early days of retail, controlling distribution channels was key. Companies like department stores and large retail chains (e.g., Target , Walmart , Costco) dominated because they controlled the physical distribution networks. Over the Period of Time as e-commerce emerged, the physical distribution channels became less of a barrier. Online platforms like Amazon made it easy for multiple brands to distribute their products widely. Brands that offered the best products, like Nike or Apple, started to stand out regardless of where they were sold. In the e-commerce era, many products gradually became commoditized, with multiple brands offering similar quality and styles. The differentiator was the service experience. In this Era ,Companies like Amazon excelled by providing superior customer service, fast shipping, and easy returns. When for some Industries and Products , services like fast shipping and customer support become standard, companies that can leverage a strong network (supply chain, user base, influencers) gain an edge. Platforms like Instagram , TikTok and YouTube emerged and become an influencer for purchasing decisions. Brands that harness these networks, like Fashion Nova with influencer marketing, thrived Shein is an interesting case in this framework. It doesn't control proprietary distribution channels but leverages the commoditized global logistics network to ship directly to consumers worldwide. Its products are not particularly differentiated by unique quality neither it provides adequate service and hence doesn't necessarily stand out purely based on services like Amazon does with its exceptional customer experience. Shein's strength lies in its network, particularly its ability to quickly identify and respond to fashion trends. It uses a combination of data analytics, a vast supply chain network in China, and aggressive online marketing strategies. Shein also leverages social media and influencer networks extensively to reach its target demographic. Many Players are Pivoting their Business Models currently to see how they can Adopt to the Changing Market. But This Framework can really guide what one needs to do to qualify for the next stage and Create formidable barriers for its survival. #shein #notsorandomthoughts #Disruption #allthingsfashion #Businessmodel

25% of all European #eCommerce #Beauty sales came from #marketplaces in 2023. 💄 💹 (Source: McKinsey) Germany follows a similar pattern as our data shows that marketplaces have large footprints as well as advanced capabilities that are primed for conversion. 👣 💪 📢 The conclusion is clear: Beauty brands cannot afford to ignore marketplaces due to a lack of brand fit. Interested in learning more? Find a free copy of our eCommerce Landscape Overview for the German Beauty Industry in the first comment. hashtag #eCommerce hashtag #Trends hashtag #BeautyIndustry hashtag #BusinessIntelligence hashtag #DataDrivenInsights

As an Export Merchandiser many people asking the same question to me:- how to expand into a new market…? So my ans. for all of them: - just Review your current business model and target audiences. ... Research competitor markets... do complete market research on related product markets... Identify one target market to focus on.... Get feedback from existing customer-bases. I believe that to understand different cultures and people, you need to spend some time with them. If possible, travel to the area you are planning to expand your brand into. Spend some time with local people. Visit local places, stay away from tourist attractions. See everyday life in that area. It will give you insights like no other! It is always critical to ensure you have the resources to support inventory as you grow into a new market. If you don’t have an adequate inventory strategy to service this business you will spend resources that result in a long-term loss. The worst thing you can do is open a new market & then suddenly begin shorting inventory once people begin to adapt the product. Strategy & planning before entering a new market is key. When it comes to brand expansion, something overlooked by smaller organizations, normally due to resources, is the ability to customize and communicate in a way that resonates with the new market. This is key and with the digital advancements now available along with social media - the financial restrictions and barrier to entry has been lowered. However, if there is more of a budget: Establish a Local Presence: Set up physical pop-up offices or branches in target markets to establish a presence and build trust with local stakeholders. Hiring local talent and cultivating strong relationships with government bodies, industry associations, and community leaders can enhance credibility and facilitate a smoother expansion. Be sure to continue to evaluate your strategies based upon the feedback from your particular market, this will allow you to remain competitive and sustain growth. Understand the new market’s demographics, consumer behaviors, competitors, and cultural nuances. Monitor and Adjust: Continuously monitor your brand’s performance in the new market, gather feedback, and make adjustments as needed to optimize your approach. Marketing and Promotion: Implement marketing campaigns tailored to the new market, utilizing a mix of advertising, social media, PR, and other strategies. Distribution Channels: Identify the most effective distribution channels to reach your target audience, whether it’s through e-commerce, retail partnerships, or other means. Above all make best product so consumers’ become your best influencer for the brand!

“Local companies are nipping at the heels of global names such as L’Oréal, Estée Lauder and Shiseido in China, the world’s second-biggest beauty market by sales. Their savvy use of social media and concentration on less affluent cities overlooked by foreign companies have helped them gain ground. Domestic labels’ share of 40 top beauty brands’ online sales in China rose to 47.9 per cent in the first 10 months of 2023 from 43.6 per cent a year earlier, according to data from Euromonitor. It forecasts that China’s colour cosmetics market, which includes products such as foundations, lipsticks and nail polishes, will hit Rmb111.3bn ($15.6bn) in 2028, up from Rmb71.6bn in 2022. ‘It is the best of times for Chinese brands, as consumers’ level of openness for them has never been higher,’ said Miro Li, founder of Shenzhen-based marketing consultancy Double V Consulting. TikTok’s Chinese app ‘Douyin has successfully approached a wider range of consumers,’ said Stefan Huang.” “‘Particularly younger people in lower-tier cities, who are out of reach of traditional ecommerce sites such as Tmall’, added the head of strategy at Shanghai-based Joy Group. ‘A number of foreign companies didn’t catch up with the trend, but Chinese brands did,’ he said. L’Oréal, for example, only started ramping up its marketing on Douyin in 2023’. Sales on social media are set to become even more important, with Goldman Sachs calculating that a combined 37.5 per cent of China’s total ecommerce cosmetics transactions will take place on Douyin and its rival Kuaishou in 2025, up from 25 per cent in 2021. The other advantage local companies have on foreign brands is domestic marketing teams and close access to factories, said Huang. ‘If I spot a lipstick shade that is losing momentum or a new trend that is about to take off, I can get to the factory within two hours and adjust production within a month,’ said Huang. ‘normally takes a foreign brand four to six months to respond’.” “There is still room for foreign brands to grow. Shiseido, which made 26.4 per cent of its sales in China in the first half of 2023, said in a written reply that it would increase its investments in both ‘promotional activities’ and ‘brand value building’ in China. L’Oréal’s sales in North Asia, which is dominated by China, totalled €11.3bn in 2022, about a third of its sales that year, and up 6.6 per cent year-on-year despite harsh zero Covid lockdowns denting sales in the last quarter. Their premium luxury division in China in particular has been steadily gaining market share. Florasis, a Hangzhou-based cosmetics start-up and the country’s largest local beauty brand with a 6.8 per cent market share, has made some inroads into the premium market. Florasis hopes to replicate its formula of vast social media presence and traditional Chinese motifs in overseas markets including the US, Japan and south-east Asia. Joy Group has also set up operations in countries including Japan, Malaysia and Canada.”

🛍️ The Rise of Temu: Disrupting the Beauty Industry 🌟 As an e-commerce platform, Temu has taken the US market by storm, challenging traditional beauty retail channels with its competitive pricing strategy. Let's explore how this newcomer is reshaping the beauty landscape: 🔥 Top 10 Temu Beauty Finds: From skincare essentials to makeup must-haves, Temu offers an array of affordable options that rival established brands. These budget-friendly alternatives are gaining traction among savvy consumers. 💼 Industry Impact: 1. Shift towards budget-friendly beauty 2. Pressure on traditional retailers 3. E-commerce dominance in beauty 4. Social media's role in promoting affordable products 🤔 Challenges and Concerns: While Temu's offerings are enticing, questions about product authenticity and quality control remain. Established brands must adapt to stay competitive in this evolving market. 🔮 Future Outlook: As budget-friendly e-commerce platforms gain popularity, we can expect shifts in consumer behavior and product development. The beauty industry is poised for transformation. 💡 Key Takeaway: Temu's success highlights the growing demand for accessible, affordable beauty products. Brands must innovate to maintain customer loyalty in this new landscape. 🔍 Want to discover the top Temu beauty products? Check out our in-depth guide here: https://lnkd.in/gzHtx8Fa What are your thoughts on this industry shift? Share your experiences with budget-friendly beauty platforms in the comments below! #BeautyIndustry #Ecommerce #AffordableBeauty #IndustryTrends #BeautyTech #ConsumerBehavior