eCommerce worldwide is at its sweetest moment for finding opportunities. The cosmetics and beauty sector is booming in Asia, and even more so in China.
Asia-Pacific is the world’s most attractive market for cosmetics and beauty companies.
Asia accounts for 51% of global sales. The cosmetics and beauty sector generated US$111.95B in 2017, with a compound annual growth rate of 6% between 2012 and 2017, making it a very strong and steadily growing sector.
Within the cosmetics and beauty sector, the segment with the highest revenue in 2017 was facial moisturizers, with US$19B.
China, the growth engine of the cosmetics and beauty industry in Asia.
China is the world’s second-largest cosmetics market after the United States, although it is on track to become the largest by 2020.
In 2016, China closed with revenue of US$35.4B in the cosmetics and beauty products sector, with an annual growth rate above 10%.
88% of Chinese women aged 20 to 30 wear makeup every day, and 63% of Chinese men use beauty products occasionally. These figures confirm the importance of the cosmetics and beauty sector in the Chinese market.
Of the 60% of total sales made by foreign companies, 90% of the sales value is accounted for.
The online channel, the key to success in Asia.
The biggest trend in the online channel is the growing interest in influencers, or KOLs (Key Opinion Leaders).
The following figures show this:
- More than 37% of female shoppers discover new products through influencers on online channels.
- An influencer costs between US$5 and US$10 per 1,000 views.
- 75% of companies use (or want to use) influencer marketing as part of their strategy.
This shows how important influencers have become in this sector.
“ Ecommerce isn’t the cherry on the cake, it becomes the new cake ”
says Jean-Paul Agon, CEO of L’Oréal Group
Overall, the market share of online sales channels is growing at a rate above 40%. 77% of online sales are made in tier 1 and tier 2 cities.
There is a clear upward trend in online purchases of cosmetics and beauty products, so it’s important, and highly worthwhile, to have an eCommerce adapted to customers’ new ways of shopping and to new market trends.
At TLG Commerce we specialize in building online stores for the Asian market. Ask us for more details. We’ll help you with your project!
Sources: Statista, Euromonitor International Reports, cirs-reach.com, HKTDC Research, cosmeticsdesign-asia.com.
Image source: Pexels
