Thai beauty brand Annabella to enter China with Global Scanner deal

31-Oct-2018 - Last updated on 31-Oct-2018 at 01:21 GMT

Chinese e-commerce platform Global Scanner is to help Thai skin care brand Annabella expand into the country’s $1 trillion market.

The strategic cooperation agreement was signed a day after the Sino-Thai e-Commerce Forum, which was hosted by China's Ministry of Commerce, China-Thailand Strategic Research Centre, and Thailand Convention & Exhibition Bureau (TCEB).

In attendance were more than 100 leading domestic brands as well as representatives from China’s key e-commerce players, including JD and Tmall.

“Thailand is a country with its own views on beauty,” said Miao Fa, Senior Commodity Director of Global Scanner. “The makeup and cosmetics industry in the country is very unique, and, by that token, is an important part of Global Scanner's supply chain.”

E-commerce alliance

With online retail sales in China reaching approximately $1 trillion in 2017, up 32.2 percent year-on-year, the market holds immense opportunity and potential for Annabella, said Ronnakon Saelee, Head of Marketing for Annabella.

However, with aggressive competition, barrier entry is high for a brand hoping to establish a name for itself with Chinese consumers, he said.

“Dependent on traditional sales models, companies cannot afford high advertising costs, while the barrier to entry is steep, making it difficult to establish brand awareness and establish a reputation among the target consumer demographic or segment in a short amount of time.”

As such, Saelee said Annabella entered into the agreement with Global Scanner because of its 40 million strong users, and its position as an emerging social e-commerce business.

“Through the sales model based on "trust + share", Annabella is confident that it will be able to touch the hearts of Chinese consumers in the shortest time,” said Saelee.

Additionally, Global Scanner said it enjoys friendly relations with TGM, a company jointly authorised by Thailand's Office of Small and Medium Enterprises Promotion and the Ministry of Commerce, which helps local brand expand into China while promoting trade between the countries.

Expanding Sino-Thai beauty trade

Currently, Global Scanner has cooperated with more than 1,000 brands in more than 60 countries. According to the company, it grew by 500% for two consecutive years. According to Global Scanner, China has been Thailand's largest trading partner for the last five years.

Besides Annabella, Global Scanner also plans to collaborate with other quality Thai companies who wish to explore the Chinese market, said the company.

Through the press statement, Global Scanner said it was also in talks with two other popular Thai beauty brands, Mistine and Beauty Buffet, during the Sino-Thai e-Commerce Forum.

In addition, the company said it was planning to engage Thai beauty distributor Karmart for an “in-depth collaboration”, but it did not specify any details of the collaboration.