US skincare company Coty Incorporated has launched a range of products on Alibaba’s Tmall, reports China Daily.

CEO Camillo Pane says it has taken this step because advisors believe this is now the best way to reach young Chinese consumers.

“It is just the beginning,” says Pane, noting the company already has plans to expand the range for its Tmall storefront. “There is no doubt we are going to strengthen our capability in e-commerce – this is our current focus.”

He says the digital channel is especially helpful in enabling companies to reach consumers in smaller cities, which contribute most of the growth.

Many brands in China take their products online first, says Shanghai Commercial Economic Research Center director Qi Xiaozhai. “In my opinion, this is a safer choice especially considering the much higher cost of brick-and-mortar stores.

“Brands can learn the actual market demand, consumer preferences in a specific market, and make follow-up expansion plans accordingly.”

He says consumers also need time to know and accept a new brand.

The popularity of smartphones has enabled 70 per cent of Chinese consumers to choose buying beauty and personal-care products online instead of physical stores, for convenience and lower prices, says research firm Mintel Group. In one of its polls, 37 per cent of respondents said they go online for “homework” before making a purchase.

Another report says retail cosmetics sales for all companies will total US$7.4 billion in China in 2021, an increase from $4.3 billion last year.

Coty’s involvement in China goes back to 2014 when it entered a distribution agreement with Li & Fung.