Physical retail key to China skin care market

The Mainland China skin care market has huge potential – but with the rise of domestic brands and the influx of foreign ones, competition is becoming increasingly intense.
An expert in the sector, He Yonghua, GM of Changzhou-based Cloud Point Network Technology, has analysed the sector and spoke with HKTDC Research economist Alice Tsang in a detailed advisory published on the HKTDC website.
eSkincareHe says new brands must understand the characteristics of different marketing channels, identify their core customer groups, and find the right partners when entering the market in order to achieve better results with less effort.
“Brand competition is becoming more homogenous in China’s skincare and cosmetics market and the entry of foreign brands may inject new vitality into this sector,” says He, whose analysis of the development trends of the skincare industry and the characteristics of different marketing channels provides a useful reference to companies interested in venturing into the China market.
He is the owner of Cloud Point as well as two other trading companies that deal in skincare products and cosmetics – Suzhou Dai’ao and Changzhou Jieshuai. Each of the three companies has its own positioning.

Suzhou Dai’ao was established in 2010 as a provincial-level sales agent for cosmetics brands such as Elishare, Nobbily, Butterfly Shops and Pola. It attaches great importance to the professional services of brand-building and offline sales, and cooperates with beauty schools to provide training for staff, including shop managers and assistants, in beauty techniques. Those trained can engage in professional brand promotion and help improve the customer experience.
Changzhou Jieshuai, established in 2011, mainly deals in famous mainland brands that already have a customer base and helps them to expand their marketing channels. It is the agent for Pechoin’s herbal series, Singapore’s Bio-Essence and other brands.
Read the full analysis here.

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