the number of users
Tmall.com claims to have
beauty department, at the second Tmall Beauty Awards held in Shanghai on Feb 26.
Hu expected that by 2018, the overall market size will reach 800 billion yuan and almost half of the beauty products consumed by Chinese people will be purchased online.
However, Zhu Zhenghua, general manager of Estee Lauder China’s digital marketing department, sees the virtual world as more than just a sales channel.
“When Chinese consumers are choosing a lipstick, they prefer to see the color on lips than on paper or color plates. But according to certain regulations, we cannot display the color effect on lips of our products online,” said Zhu.
This problem inspired Zhu’s team to launch an online initiative during the Chinese Spring Festival this year, encouraging consumers to apply their lipsticks and upload their selfies on a community site set up by Tmall. The initiative promptly boosted sales of lipsticks both online and offline.
Key growth engines for China’s beauty market have been identified as consumers from lower-tiered cities, where cosmetics companies have yet, and are unlikely, to expand their brick and mortar stores, and the male segment.
In 2015, 30 percent of the beauty products bought from Tmall were shipped to what has been categorized as third-and fourth-tiered cities.
There are over 50 brands, including major ones such as Estee Lauder, L’Oreal and Shiseido, that have launched their flagship stores on Tmall. com. Another 20 brands are expected to enter the fray in 2016. The e-commerce giant claims to have 400 million users.