In this instance the market researcher says the key to growth for cosmetics brands on the region is to focus on digital platforms to reach existing and newly affluent Chinese consumers.
Currently online market growth rate is indicated to be three times that of retail, driven in part largely by rising incomes outside the Tier 1 cities (Beijing, Guangzhou, Shanghai and Shenzhen).
“Once Chinese consumers try online shopping, they tend to like it and become repeat customers; only 6.2 percent shop once and are then done.”
Digital platform is best
According to the market researcher, the first thing to know about the digital platform is that it is growing very fast, almost doubling in size, year after year, as tens of millions more people join in. It reports that there is already about 190 million online consumers (more than in the US).
"The key to this growth is simple: Once Chinese consumers try online shopping, they tend to like it and become repeat customers; only 6.2 per cent shop once and are then done. In 2011, almost 85 percent of online shoppers said that online buying was as good or better than offline."
Elsewhere; another survey carried out by regional market analyst, Bain, reveals Chinese buyers seldom form attachments to specific branded products and that the more often they shopped within a particular product category, the more different brands they were likely to try.
Integrating digital for success
With this information of the market stance in mind, news publication on the region, AdAge Blogs, says smart brands have already integrated digital into their marketing plans such as efforts recently made by P&G to increase sales of Rejoice shampoo on Valentine’s Day.
"China is the most socially engaged market in the world. Seventy-six percent of its social-media users are creating content rather than just watching it, and 84 per cent upload videos, share photos and microblog at least once a month. What’s more, China’s estimated 1 billion mobile-phone users are driving e-commerce sales."