30 ANALYSIS


for a variety of functions from social media, messaging as well as a payment service, among other services. Companies in China can use WeChat to help promote their goods and services by pushing messages onto their subscribers.


Another popular and ever expanding app in China is Meitu, which initially started as an Instagram-styled selfie posting app. However, Meitu is looking to expand into the E-commerce space to become a one- stop beauty shop. Meitu’s sister app, Makeup Plus, already has an E-commerce feather and currently stocks makeup brands such as Bobbi Brown.16


So, when developing a cosmetic range for the China market, it is important to explore different social media platforms used in China and how you can use these platforms to build your network, advertise your brand and develop loyal brand following.


Daigou shoppers: what are they? Around a decade ago there began the booming trade of Daigou shopping as a direct result of mistrust in the authenticity of some products sold in China, as the Chinese authorities identified several scandals involving adulterated or fake baby formulas, leading to a thousand or so babies becoming ill and in the worst cases resulting in the death of some babies. As a result, Chinese consumers preferred to purchase overseas goods from countries they believed to have higher safety standards, such as Japan, Korea, EU, Australia, and New Zealand.3 So, what is a Daigou shopper? Dai means “on someone’s behalf” and Gou means “to purchase” so essentially a Daigou shopper is an overseas surrogate shopper who buys on behalf of a person living in mainland China and send these goods back to China by mail, if the individual goods are below a certain value they can import without issues or tax. The Daigou shopper would mark up the goods in order to make a profit from the sell, it is believed that some Daigou shoppers are earning in excess of AUD $70,000-$100,000 per year.8


In fact, a number of shops have


appeared in areas with high levels of Chinese expatiates selling desirable goods. Additionally, the Australian Post has opened a number of Post Offices specifially for this purpose in areas such as Chatswood in Sydney.7


This desire for Australian-made


products in China is so large that companies that sell and market directly to Chinese consumers on behalf of Australia brands such as AuMake have become extremely successful over the last year or so.3


Are Chinese consumers changing their hair washing habits? Hair care has become an important but saturated market in China, however there is still room for volume growth in this sector, due to the fact most consumers in China do not wash


PERSONAL CARE ASIA PACIFIC Hydration/moisturisation


Balance skin moisture Refine pores Whiten skin


Make skin fine and smooth Remove blackheads Improve skin elasticity Enhance skin radiance


Tighten skin Fight wrinkles


68% 67%


62% 55%


57% 50%


55% 47%


46% 45%


43% 30%


42% 45%


40% 42%


39% 48%


32% 51%


n Aged 20-30 n Aged 31-45


Figure 2: Expected benefits of skin care products. Source: Skincare products in China: characteristics of female consumers.


their hair every day as they believe this will damage their hair and cause hair loss, instead most Chinese consumers only wash their hair every 2 or 3 days. Therefore, increasing the number of washes in China will be the key driver over the coming years. However, what can be done now? This apparent wash phobia creates opportunity for new product segments such as products designed for in-between washes such as dry shampoos, wipes or develop shampoos designed to keep the hair clean for 3 days, such as P&G’s Rejoice micellar water hair care range which came with the slogan “Challenge: No hair wash for 3 days”. So, the key to growth in this market segment is to differentiate your product, think about what your product can do in between normal wash, such as protect the hair from pollution or provide a gentle cleanse between washing, etc.4


Good skin can boost confidence and give people a good impression


Look younger Solve skin problems


Influenced and necessitated by work situation


Influenced or urged by family and friends


Requested and coached by family members


83% 76%


67% 73%


64% 59%


26% 30%


11% 9%


7% 9%


n Aged 20-30 n Aged 31-45


Figure 3: Why skin care is a must for women. Source: Skincare products in China: characteristics of female consumers.


Concerns for Chinese consumers The signs of ageing in Chinese people are different from what we see in more European/Caucasian based countries. For example, the crow’s feet wrinkles in Chinese women can take around 10 years longer to be as visible as a Caucasian female’s wrinkles. However, yellowing of the skin is much more prominent in Chinese females. The graphs in Figure 2 and 3 show the Chinese consumers’ expectations and reasons they feel skin care is a must.


Three main trends in skin care There are three main trends currently in China when it comes to skin care: Health and wellness, instant gratification and facial masks.


Health and wellness are linked to pollution; it will be no surprise to anyone to know that China is one of the most polluted countries in the world. With 2.5ppm levels getting dangerously high, this affects the two most important things to a Chinese consumer: 1. Happy family and 2. Healthy lifestyles; so it is easy to see why skin care which promises to protect against pollution would be important. Some anti-pollution products on the Chinese markets are Dior One Essential City Defence, taking the approach that Detoxing the skin = Anti-pollution. It claims to be anti-adhesive to repel pollution particles at the surface of the skin, it has an anti penetration effect to prevent particles from getting into the deeper layers of the skin and finally an anti-oxidant effect to help repair damage caused by pollution.11, 10 Instant gratification is driven by millennials where the need for immediate results, with minimum preparation time, is required. This has led to the development of multifunction products, such as air


September 2019


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