Health & Beauty

In the global cross-border market, beauty products have always been the main contributor to mass retail consumption. And under the rapidly rising consumer trend of the "value economy", whether daily sales or shopping festivals, whether focusing on China or looking at the world, consumers are more and more willing to pay for their beauty.

The new crown epidemic accelerates online consumption stickiness, boosting the growth of the beauty market

In the context of the global pandemic of the new crown pneumonia epidemic, with the implementation of border closures and home isolation policies in various countries, the offline retail service channels of the beauty industry have suffered heavy losses, and consumers in various countries have turned to online transactions.

According to OECD research, global online consumer orders in 2020 will increase significantly year-on-year, with the highest increase in Asia-Pacific and Europe during the epidemic period of 80%, and the highest increase in North America by 150%. This is enough to show that the online consumption stickiness of consumers in various countries is rapidly forming.

In the period of major adjustments in the international economy and trade pattern, the rapid development of cross-border e-commerce and cross-border logistics has also opened up a new growth track for beauty brands.

According to data provided by Globe, L’Oréal&Statista, the market value of the global beauty industry has risen to US$511 billion in 2021, with a global compound annual growth rate of 4.75%.

eMarketer predicts that in 2021, the share of online sales of beauty products will continue to grow, and even in the next three years, global online retail platforms will show a momentum of growth. In Europe and the Asia-Pacific region, where the penetration rate of e-commerce is low, with the gradual improvement of supporting facilities in the e-commerce industry, the beauty e-commerce consumer market will also have greater development potential.

Domestic beauty products go overseas to define C-beauty to the world

As China takes the lead in a strong recovery from the epidemic, domestic beauty products are still at a disadvantage compared with overseas beauty brands. However, with the continuous improvement of the cultural self-confidence of the Chinese nation in recent years, and the innovative marketing and global layout of domestic cosmetics, no less than 25 Chinese brands have tried to go overseas.

At present, domestic beauty products are speeding up to go overseas, and the industry refers to 2020 as the "first year of beauty products going overseas."

According to statistics from the General Administration of Customs, China's export volume of cosmetics and toiletries in 2020 was 999,019 tons, an increase of 4.3% year-on-year.

Statistics show that in the first three quarters of 2020 alone, China's cosmetic exports (US$3.139 billion) have surpassed 2018 (US$2.5 billion) and 2019 (US$2.774 billion). More and more Chinese beauty brands have targeted overseas markets, hoping to open up a broader world and interpret the new definition of C-Beauty to the world.

Recently, data from the "2021 Beauty Industry Trend Insights Report" released by CBNData Data Center and Tmall Golden Makeup Awards show that domestic beauty cosmetics have increased by more than 10 times.

In recent years, in the wave of domestic cosmetics going to sea, many new and cutting-edge brands have appeared. For example, Perfect Diary focuses on the Southeast Asian market. In April 2020, Perfect Diary launched its overseas official website, which is available in Chinese, English, Japanese, Russian, Thai and other languages, and supports payments in currencies such as U.S. dollars and Singapore dollars. In addition, domestic beauty brands such as Huaxizi, Huazhizhi, and ZEESEA also performed very well overseas.

On May 25th, Tmall’s new domestic make-up pioneer seminar was held in Guangzhou. On-site experts believe that the next 3-5 years is a window period for Chinese brands to go overseas. "On the one hand, now is a period of major adjustments in the international economy and trade pattern, and companies have the opportunity to participate in reshaping the industrial pattern; on the other hand, after years of development, with the strengthening of manufacturing capabilities, supply chain capabilities, logistics and warehousing capabilities, and cultural It’s a good time for make-up to go overseas with the improvement of self-confidence."

Logistics is one of the key factors for beauty to go overseas

According to reports, “Considering that the rise of new domestic beauty brands is still in its infancy, the beauty market is fiercely competitive. At the same time, the number of self-built supply chains is small, and most rely on supply chain issues such as foundry. How to improve product strength will become a problem. The key to success for a group of brands going overseas.” In addition, how to localize is also an issue that needs to be considered.

In addition to the above challenges, logistics is one of the key factors for beauty to go overseas.

Today, with the international epidemic situation still unclear, trade barriers continue to rise, logistics cost fluctuations and other uncertain factors, I want to seize the big opportunities in the adjustment period of cross-border consumer demand and trade patterns, and seek reliable, stable, and competitive prices. Cross-border logistics channels have also become one of the indispensable factors for the growth of overseas cosmetics orders.

And it should be noted that since cosmetics are mostly liquid or powder air-controlled products, ordinary cross-border logistics services generally prohibit the distribution of such products. Therefore, having a comprehensive coverage of countries and regions that can provide convenient, safe, and time-efficient cross-border logistics services for beauty products has become one of the most urgent operational needs of cross-border beauty sellers.