China Digital Insights - The Beauty Industry · 2018-07-05 · CASE STUDY - Lady Dior User segmentation: Focus on targeting users better so consumers receive relevant content that

China Digital Insights: The Beauty Industry

•MARKET INSIGHTS

•THE CHINA DIGITAL ECOSYSTEM

•E-COMMERCE INSIGHTS

•INFLUENCER STRATEGY

•CASE STUDIES

Contents

Market Insights

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© 2018 Curiosity China

HOW DO THEY SPEND?

WHY CHINA?

Analysts predict that this year, China will overtake the United States to become the world’s largest beauty market.

The MarketInsights

12% of cosmetic spending via cross-border e-commerce platforms

18% made overseas

70% spent domestically within China

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Retail Store

ShanghaiParis

TokyoHK

• +150M Chinese tourists in 2017

• +220M 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.

• 74M = Travel Ready millennial who will graduate in the next 10 years = HENRY’s

The Global Chinese ShopperInsights

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Digital NativesInsights

The Digitized Consumer71% Own a smartphone

60%Mobile Payment Users500 M

Identify social media platforms as their main source of information on luxury goods

Early Adopters65%Shop online via a mobile device at least once per

month compared to only 28% of global consumers

74%Of all online sales that will originate from mobile devices by 2020

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.

“

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2.5 x mobile internet users than the U.S

The China Digital Ecosystem

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The PlayersThe China Digital Ecosystem

ECOM

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WeChat - A complete EcosystemThe China Digital Ecosystem

A Complete Digital Ecosystem

1 BILLION USERS +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

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WeChat Brand BenefitsThe China Digital Ecosystem

COMMUNICATION O2O LOYALTY & CRM E-COM/SERVICES

WECHAT FOR BRANDS: THE 4 PILLARS

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WeChat & Social CRM StrategyThe China Digital Ecosystem

FACILITATE EACH STEP

OF THE CUSTOMER JOURNEY

Community & Engagement: User insights, segmentation and targeted

Engagement

Acquisition: Online & Offline

& Globally1

Brand Ambassador Identification: Identify Most Active Users & Turn Them Into Brand Ambassadors

3

Drive Sales:Increase conversions online and offline points of sale.

4

Measure ROI: Connect Social CRM with CRM to measure the ROI based On Retail / E-com Sales 5

2

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Red - The Hot New PlatformThe China Digital Ecosystem

What is RED (XiaoHongShu (⼩小红书))? 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

E-Commerce

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CASE STUDY - Lady Dior

Luxury Pavillon TopLife JD TmallVIP

LUXURY SEGMENT MASS SEGMENT

The Top PlatformsE-Commerce

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CASE STUDY - Lady DiorTmall InsightsE-Commerce

• 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

Strengths Challenges Opportunties

Influencer Strategy

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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

OverviewInfluencer Strategy

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CASE STUDY - Lady Dior1 Jan - New Year

16 - 21 Feb Chinese New Year

14 Feb - Valentine’s Day

2 Mar - Lantern Festival

3 Mar - International Women’s Day

5 Apr - Tomb Sweeping Day

1 May - Labour Day 4 May - Youth Day

1 Jun - Children’s Day

18 Jun - Dragon Boat Festival

18 Aug - Chinese Valentine’s Day

25 Aug - Spirit Festival

10 Sep - Teacher’s Day

24 Sep - Mid-Autumn Festival

1-7 Oct National Day Holiday

17 Oct - Double Ninth Festival (Chong Yang Jie)

25 Dec - Christmas Day

30 Mar - Good Friday

2 Apr - Easter Monday

1 Apr - April Fool’s Day

22 May - The Buddha’s Birthday

11 Nov - Singles Day

17 Jun - Father’s Day

13 May - Mother’s Day

31 October - Halloween

22 Nov - Thanksgiving Day

12 Dec - Double 12

Key Sales Period

FEB

When to focusInfluencer Strategy

Case Studies

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Influencer Strategy

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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.

Case StudyInfluencer Strategy

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Social CRM

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• Identify your most valuable & loyal users in your existing database

• Wide variety of data: City / Gender / Activity / Recruitment Source / Data Usage

SOCIAL CRM STRATEGY

Shanghai customer

#Make up in Shanghai

Get to know your followersSocial CRM

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Owned Influencers = Future DIPTYQUE Brand Ambassadors

• Jessica is Diptyque WeChat’s internal top influencer, based in SH

• 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

Jessica

Identify your owned influencersSocial CRM

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User segmentation: Focus on targeting users better so consumers

receive relevant content that they are interested to view

TARGETED MESSAGE

Deliver the right message to the right audience

USER Preference - candles

USER Recruitment source - Paris

USER Most Active Users Shanghai

Targeted CommunicationSocial CRM

Gamification

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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

Kiss Kiss Game Gamification

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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 !

My Rouge GGamification

[email protected]

THANK YOU!

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Documents

China Digital Insights - The Beauty Industry · 2018-07-05 · CASE STUDY - Lady Dior User segmentation: Focus on targeting users better so consumers receive relevant content that