China Digital Insights: The Beauty Industry
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1 China Digital Insights: The Beauty Industry
2 Contents MARKET INSIGHTS THE CHINA DIGITAL ECOSYSTEM E-COMMERCE INSIGHTS INFLUENCER STRATEGY CASE STUDIES
3 Market Insights
4 The Market Insights WHY CHINA? Analysts predict that this year, China will overtake the United States to become the world s largest beauty market. HOW DO THEY SPEND? 12% of cosmetic spending via cross-border e-commerce platforms 18% made overseas 70% spent domestically within China
5 The Global Chinese Shopper Insights Retail Store +150M Chinese tourists in M by 2020 ~6,000 USD / trip +1/3 of all tax free shopping spend in 2017 are from Chinese Travelers 8% own passport and 12% in the next 10 years. Shanghai Paris Tokyo HK 74M = Travel Ready millennial who will graduate in the next 10 years = HENRY s
6 Digital Natives Insights The Digitized Consumer The high level of mobile penetration is largely due to a lower level of personal computer ownership, as well as the advanced data analytics of e-commerce companies that personalizes the mobile shopping experience for consumers. 71% Own a smartphone 500 M 60% Mobile Payment Users Identify social media platforms as their main source of information on luxury goods Early Adopters 65% Shop online via a mobile device at least once per month compared to only 28% of global consumers 2.5 x mobile internet users than the U.S 74% Of all online sales that will originate from mobile devices by 2020
7 The China Digital Ecosystem
8 The Players The China Digital Ecosystem ECOM
9 WeChat - A complete Ecosystem The China Digital Ecosystem 1 BILLION USERS A Complete Digital Ecosystem +38B MESSAGES SENT DAILY 93% PENETRATION IN TIER1 CITIES 69% PENETRATION IN TIER 2 CITIES 55% USE WECHAT +10 PER DAY 14M OFFICIAL ACCOUNTS 15 COUNTRIES ACCEPT WECHAT PAY
10 WeChat Brand Benefits The China Digital Ecosystem WECHAT FOR BRANDS: THE 4 PILLARS COMMUNICATION O2O LOYALTY & CRM E-COM/SERVICES
11 WeChat & Social CRM Strategy The China Digital Ecosystem 1 Acquisition: Online & Offline & Globally 2 FACILITATE EACH STEP Brand Ambassador Identification: Identify Most Active Users & Turn Them Into Brand Ambassadors Community & Engagement: User insights, segmentation and targeted Engagement 3 OF THE CUSTOMER JOURNEY 4 Drive Sales: Increase conversions online and offline points of sale. Measure ROI: Connect Social CRM with CRM to measure the ROI based On Retail / E-com Sales 5
12 Red - The Hot New Platform The China Digital Ecosystem What is RED (XiaoHongShu ( 小红书 ))? Product review platform with integrated e-commerce Most popular items include foreign cosmetics, beauty supplies, and health products. 60 M registered users Opportunities or Brands: Collaborating with influencers through product seeding or sponsored posts Benefits: Active user base of affluent millennial females who are eager to shop Consumers already have the intent to buy Trustworthy reputation amongst consumers Product Review Behavior: 54 %of consumers seek to validate product quality through reviews 27% review a product after use
13 E-Commerce
14 CASE STUDY - Lady Dior The Top Platforms E-Commerce Luxury Pavillon TopLife JD Tmall VIP LUXURY SEGMENT MASS SEGMENT
15 CASE STUDY - Lady Dior Tmall Insights E-Commerce Strengths Challenges Opportunties High Penetration of Mass & Premium Brands Consumers increasingly using Tmall as a first stop for brand research Lack of visibility for luxury brands Not compatible with WeChat Tmall live-streaming Loyalty program Super Brand Day promotions
16 Influencer Strategy
17 CASE STUDY - Lady Dior Overview Influencer Strategy Owned Influencers The Amplifiers The Stars When to engage: Nurture these relationships on an ongoing basis to cultivate brand loyalty Frequency: Ongoing Type of cooperation: Sampling, Rewards program Objective: Build loyalty and increase WOM recommendations & product reviews When to engage: Key marketing moments & product launches Frequency: Aligned with marketing calendar Type of cooperation: PAID Seeding, Content Creation, Events Objective: Maximize reach and impact of campaigns and generate local content When to engage: Special events e.g. Fashion Week, Movie Festivals Frequency: Opportunity based Type of cooperation: PAID Gifting Objective: Introduce your brand to high level influencers
18 CASE STUDY - Lady Dior When to focus Influencer Strategy 25 Dec - Christmas Day 1 Jan - New Year 11 Nov - Singles Day 12 Dec - Double Nov - Thanksgiving Day 14 Feb - Valentine s Day Feb Chinese New Year 31 October - Halloween 17 Oct - Double Ninth Festival (Chong Yang Jie) FEB 2 Mar - Lantern Festival 3 Mar - International Women s Day 1-7 Oct National Day Holiday 24 Sep - Mid-Autumn Festival Key Sales Period 30 Mar - Good Friday 1 Apr - April Fool s Day 2 Apr - Easter Monday 5 Apr - Tomb Sweeping Day 10 Sep - Teacher s Day 25 Aug - Spirit Festival 18 Aug - Chinese Valentine s Day 1 May - Labour Day 4 May - Youth Day 13 May - Mother s Day 22 May - The Buddha s Birthday 1 Jun - Children s Day 17 Jun - Father s Day 18 Jun - Dragon Boat Festival
19 Case Studies
20 20 Influencer Strategy
21 Case Study Influencer Strategy Who? K-Pop Star, Lu Han What? L Occitane s special-edition products featuring brand ambassador Lu Han were designed with deer antlers in reference to his surname and promoted on social media. Why? Celebrity beauty product collaborations are especially popular for generating both social engagement and Tmall sales. Results: The promotion caused the brand s biggest Baidu Index spike of the year, and was cited by L Occitane as a reason for its 250 percent online marketplace sales jump for its fiscal first quarter.
22 22 Social CRM
23 CASE STUDY - Lady Dior Get to know your followers Social CRM SOCIAL CRM STRATEGY Identify your most valuable & loyal users in your existing database #Make up in Shanghai Shanghai customer Wide variety of data: City / Gender / Activity / Recruitment Source / Data Usage
24 CASE STUDY - Lady Dior Identify your owned influencers Social CRM Owned Influencers = Future DIPTYQUE Brand Ambassadors Jessica is Diptyque WeChat s internal top influencer, based in SH Jessica Based on a WeChat survey, Jessica likes product: A, B, C, D, and travels to Paris 3 times a year Diptyque can consider rewarding Jessica with incentives on A, B, C, D products. Diptyque can consider inviting Jessica to store events in SH in priority Leverage Brand Enthusiasts for sampling campaigns to get the best ROI. These active followers and enthusiasts are more likely to share with their networks
25 CASE STUDY - Lady Dior Targeted Communication Social CRM USER Preference - candles USER Recruitment source - Paris USER Most Active Users Shanghai Deliver the right message to the right audience User segmentation: Focus on targeting users better so consumers receive relevant content that they are interested to view TARGETED MESSAGE
26 Gamification
27 CASE STUDY - Lady Dior Kiss Kiss Game Gamification KEY POINTS Guerlain created a Gaming Campaign for Chinese travelers which allows users to win products for delivery or pick up in store. + 10k Users play the game within 1 day Entrance Gaming - Tetris & Ranking Winning Page Get Delivered
28 CASE STUDY - Lady Dior My Rouge G Gamification KEY POINTS Gaming with advanced mechanism. Timer + ranking to increase competition. Winners can collect the product offline in retail stores > drive traffic Landing Page Product Instruction Live!
29 THANK YOU!
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