The Chinese market, like the second bigger market of consumption of the cosmetic products after U.S., always has been one of the main aims of the department of export in the beauty industry
From the apparition of the model of cross border ecommerce with big ease to go in to the Chinese market, sure that all the marks already know quite well this model and, especially the representatives of Group Alibaba.
In the first place, there is not doubt of the volume of market of trade transfronterizo because it is a market even has a good growth. According to the data of the Chinese customs, the volume of import of this modality has increased of 56.600 MM yuanes to 100.000 MM yuanes. Equally, the mass of the buyers also has grown of 15 millions in 2014, to 140 millions in 2020 and estimates some 160 million buyers between 2021-2022. Nevertheless, it is necessary to take into account of the tax of growth. When having a base of buyer so wide, every time this market approaches to his maturity, since the growth in 2020 was of 12%, being the lowest data in front of the previous years.
During the year 2017-2018, there was a big available growth of the Spanish marks in this market, creating the name of the Spanish brand, especially the specialisation of dermocosmetics in the 'top of mind' of the Chinese consumers. In this year, arose several cases of success that already know all like MartiDerm, Sesderma, ISDIN, Sensilis, Singularderm, etc. The total sale of the Spanish marks exceeded the 100 million euros in this year. By this reason, organised an event 'Tmall Discovery' by the main platform of cross border ecommerce for innovar new cosmetic products together with Spanish dermocosmetics brands. Since, the sale of the Spanish brands has gone growing of fast way in the following years.
Nevertheless, from two years ago, the perspective of the market has changed. No only by the competition of the big brands, also by the growth of the national cosmetic brands. Regarding the international mark, a clear example is the entrance of L'Oréal with a product niche like the ampoules. This year, the product of its serúm facial in ampoule format, has turned into one of the top seller in the pre-ordering of Single Day 2022.
In spite of having the initial success, by the intensity of competition, is very complicated to keep the growth of the sale in the market if only it works in the model of cross border ecommerce because his competitor makes a strategy and omnichannel marketing (and, especially, the local competitor that know the market). On a long-term basis, the return of investment of cross border ecommerce is inferior that a global strategy. By this reason, when it speaks of this modality, is used to comment that it is a step to create the branding initial in the market, taking advantage of the ease of entrance and, later, would have to implement an available strategy multicanal on-line and off-line in said market with the aim to achieve the maximum coverage. In the last two years, some marks have decided to go out of the market, an example are Roger&Gallet and HOUSE 99 of L'Oréal, as well as Spanish brands.
Settlement of Sensilis exit (Source: Weibo)
When seeing these exits of different brands, seems that it already is the end of cross border ecommerce, but is not like this.
As any market, always there is entrance and exit of the brands. In this year 2022, some new international brands like NYX PRO Makeup and IT Cosmetics have created his flatshop store in the platform Tmall Global. And, according to Alibaba, the number of openings of new shops in Tmall Global grew 100% during 2021 with a total of some 5.000 new brands. More than 2.000 marks have attained to obtain a sale GMV of more than 100.000 yuanes monthly.
NYX Flagship Store (Source: Tmall Global)By the consequent, the advantage of the cross border ecommerce is clear, since from the beginning we know that it is a channel for the first phases of the expansion and reduce the long time of wait in the register of product. In this phase, the platform offers numerous advantages to purchase knowledge at first hand in sector (no only through the distributors). In this experience there will be a lot of failures, but are the base to arrive to any success.
If the brand wants to expand in the Chinese market successfully, more than thinking in a shop of cross border ecommerce, independently in Tmall Global or JD Worldwide, is important to have a global strategy and some activities of marketing colaborativas with the partner local (can be or no by the format of distributor) and only in this way goes to achieve a more sustainable success.