Tmall targets 1000 online cosmetics stores this year
Alibaba’s Tmall has announced that it expects international and domestic cosmetics brands to open 1000 online cosmetics stores this year to meet burgeoning demand from Chinese consumers.
At its annual beauty summit, Tmall announced that seven international cosmetics companies have signed agreements to open flagship stores on Tmall this year. Another five beauty companies signed New Retail partnerships with Tmall during the summit, giving them a complete view of their customer base by integrating insights from digitised offline promotion activities and storefront information with online information.
“We are honoured to be trusted by 180,000 brands on our platform, empowering them to accelerate their digital transformation and grow their business in China,” said Tmall president Jet Jing. “As China continues its consumption upgrade, more and more people from different age groups and geographic locations are willing to spend on high-quality beauty products. We are looking forward to working with more brands to address the opportunity.”
Tmall’s sales of beauty products via its online cosmetics stores jumped by more than 60 per cent last year, surpassing the industry’s average growth rate. Online sales of cosmetics, skincare and personal care products grew by 46 per cent, 40 per cent and 37 per cent in China respectively last year, which was also ahead of the whole fast-moving consumer goods sector average of 34 per cent, according to a report jointly released by Tmall and retail market research firm Kantar during the summit.
The report also highlighted the untapped potential in Generation Z. Aged between 15 to 19 years old, Generation Z female consumers are newcomers to the beauty market and are willing to spend more on high-end lipsticks than women in other age groups, representing an opportunity for cosmetics companies.
Last year, some 80 per cent of Tmall brands chose the marketplace to launch new products, proof of the platform’s ability to identify new markets and demand. Two new emerging domestic beauty brands were among more than 30 beauty and personal care brands whose sales topped RMB 100 million (US$14.9 million) at last year’s 11.11 Global Shopping Festival.
Also at the summit, Tmall showcased a one-stop solution, the Alibaba Business Operating System, as part of a new effort to help beauty brands succeed in China. The system helps brands digitally transform themselves in sales, logistics and supply-chain management, payment, marketing, cloud computing and other supporting services.