How area of interest worldwide magnificence manufacturers can reach China

The fast rise of content commerce platforms such as Douyin (China’s Tiktok) and Xiaohongshu (Little Red Book) further offers niche brands alternative digital touchpoints to connect with Chinese consumers in a more effective but less costly way.

2022 re-imagined: A return to brand value

In a post-lockdown period, China’s consumer market is no longer in an era of unbridled growth. This transition marks the maturation of the Chinese consumer who looks for personality and character in the brands they buy.

In that sense, Marshall Chen sees the Chinese beauty market undergoing a drastic correction, with less investor activity.

“The market is back to rationality. Before, when the economy was fast-growing, lots of personal equity and venture capital investors poured funds into the beauty sector, which led many of them to rely on mass marketing to drive fast growth,” he says, noting this approach can hurt brands in the long run.

However, with online traffic becoming increasingly expensive with lower returns on investment, “beauty cannot always be entirely driven by capital and marketing. Brands need to constantly consolidate brand value and consumer awareness and perception,” he adds.

Such a change is set to be beneficial for small, niche beauty brands that have smaller marketing budgets, but come with stronger brand images. Gen-Z and millennial shoppers in China may as a result spend more time exploring brands on their own instead of being lured by heavy online advertising.

The CP model: An all-encompassing approach to empower brands

With the changing consumer mindset and market dynamics, niche beauty brands should also rethink the way they collaborate with Chinese partners.