Multiple factors are driving Chinese companies to accelerate the pace of going abroad. First, China’s economy has entered a new phase of steady growth, and overseas markets have become more attractive compared to the past under the situation of increased domestic competition. Second, the continuous improvement of digital economy infrastructure globally since the Covid-19 epidemic, including logistics, payment, independent station building, and marketing, has made the cost of going abroad drop and convenience improve. Third, the new generation of Chinese entrepreneurs and entrepreneurs generally have overseas study or work backgrounds, and thus have a more global perspective and ability than the previous generation.
The global beauty market has been growing steadily over the past decade, regardless of the economic climate. More and more consumers are actively sharing and communicating their beauty experiences through social media platforms. According to Twitter, there were 460 million beauty and skincare-related tweets on Twitter in 2020. Even under the impact of the epidemic, makeup-related topics still account for nearly 60% of discussions.
At the same time, more and more Chinese beauty brands are starting to go abroad. This is partly because the traffic dividend in China’s domestic market is waning and channel costs are rising. On the other hand, although China has become the world’s second-largest beauty market, the volume of overseas markets should not be underestimated. Euromonitor data shows that the global beauty market reached a value of USD 83.7 billion in 2021 and will reach USD 107.6 billion by 2025.
EqualOcean data shows that in recent years, the scale of China’s exports of beauty cosmetics and personal care has increased year by year.
Which Chinese beauty brands are currently going abroad? Which markets have these brands chosen? And what are their main products? With these questions, EqualOcean has compiled information on all the beauty brands currently going overseas in China, as shown in the chart below.
On the whole, Chinese beauty brands going abroad show some commonalities and characteristics in terms of going abroad channels, product categories, and market choices.
From the perspective of cross-border channels, Chinese beauty brands have the following 4 types of channels to go abroad.
Category 1: Brands are launched on e-commerce platforms such as Shopee Lazada AliExpress and Amazon, and brand building and product sales are completed based on platform traffic and …….