Permitting international manufacturers to promote merchandise in China with out bearing the burden of prices and administrative duties of a bodily location, cross border BtoC e-commerce has skilled vital progress over the previous few years in China, which ought to depend 74 million of cross border customers in 2018, in line with iiMediaresearch. Supported by Chinese language authorities which see e-commerce as a instrument to foster nationwide consumption on the expense of purchases made by Chinese language vacationers overseas, the process is but extremely regulated.
As an illustration, Alibaba requires manufacturers to resort to a TP or “Tmall Companion” primarily based in China to make the hyperlink with the platform. Nuxe has thus partnered with NextBeauty, an organization based by Grégoire Grandchamp comprising a crew of Chinese language specialists previously employed by L’Oréal China and Alibaba. “Don’t go considering that platforms will do the job for manufacturers”, he asserts. “Our position is to understand learn how to collaborate with manufacturers and to develop a gross sales and advertising and marketing technique to make them succeed on Tmall”. To draw the most important attainable variety of Chinese language web customers, the TP encourages manufacturers to make good use of the Tmall agenda which revolves round 6 main promotional occasions, notably Singles’ Day on November 11th or “11/11”, a web based 24-hour procuring day launched in 2009 by Alibaba.
Upstream preparation of 11/11
In 2017, the Chinese language large introduced a gross sales document of US$25.3 billion, a 39% improve over 2016, made at 90% by way of the cell app – but in addition claims one other victory, i.e. a transfer upmarket and a robust enchancment of its model picture in comparison with the promotional gross sales occasions from its early starting. The primary innovation of the Tmall platform lies within the opening of a Luxurious Pavillon devoted to luxurious manufacturers, where Guerlain managed to promote a fragrance on the worth of 500.000 yuans (EUR65.000).
Cosmetics manufacturers didn’t skimp on assets. Lancôme invited six Chinese celebrities to introduce its merchandise from totally different views. SKII designed a restricted version introduced in a joyful and playful means. MAC made 200 fashions parade on the “See Now Purchase Now” present organised by Tmall. Estée Lauder, L’Oréal and Shisheido put in pop-up shops throughout the time of the occasion…
“11/11 positive factors momentum by way of the mixing of recent codes resembling premiumisation, customization, gaming and leisure”, recaps Julie Bonnet. “11/11 is not a mere promotional occasion, however has turn out to be a significant alternative to carry collectively varied manufacturers, thus permitting us to mix branding and enterprise.”
Nuxe selected to function three ranges of merchandise – l’Huile prodigieuse, Rêve de miel and the Crème fraîche de beauté. “Preparation is what issues most”, insists Grégoire Grandchamp, who urges the necessity to start planning six months forward of the 11/11 occasion. Nuxe primarily targeted on influencers, calling for a nationally-recognised KOL (Key Opinion Chief) knowledgeable within the discipline of cosmetics, Wu Miao (吴淼), in addition to 4 regional celebrities coming from areas round Beijing, Guangzhou, Chengdu and Shanghai, “with the intention of attracting 2 million followers.”
Let influencers get insight-driven
“Influencers play a important position in as we speak’s cosmetics”, asserts Grégoire Grandchamp. “Even manufacturers which had been initially little recognized in China like Leonor Greyl, whom we cooperate with, is at the moment increasing fairly quickly with the assistance of some KOLs.” Nonetheless, he insists on the necessity to make sure that the influencers chosen have a very good data of the model and admire its merchandise, “as a very good influencer is somebody who maintains a personal and real relationship with the model, who’s an actual fan. It’s also necessary to ascertain long-lasting relationships with them, with a view to keep away from attracting pretend followers.”
For Julie Bonnet, influencers even “dominate the media panorama in China”. “But, there’s one important facet that you need to think about, particularly as a French model. Certainly, you need to give influencers free rein if you wish to achieve China. It’s essential to let KOLs get insight-driven.”
The end result of 11/11 was “consistent with Nuxe’s expectations, with 50 % of the gross sales turnover achieved for this primary 12 months which was quite brief.” Manufacturers normally obtain 35-40% over a standard 12 months, signifies Grégoire Grandchamp, who assures that NextBeauty presents a long-term, balanced partnership between turnover and branding. “We give manufacturers entry to Alibaba’s knowledge in English, to supply them a extra focused outreach by way of clients profile and buy pattern”, he explains, including that regardless of Tmall, NextBeauty usually works with six or seven different platforms.
To resort to cross-border e-commerce, manufacturers usually are not obliged to undergo Tmall. Different platforms exist, resembling JD.com, which achieved a gross sales document of US$ 19.2 billion this 12 months at 11/11 (a 50% improve as compared with 2016), Xiaohongshu.com and even the chief Kaola.com (member of the Chinese language group NetEase), much less widespread in Europe. “The panorama turns into extra heterogeneous, extra prolific and extra advanced”, signifies Laure de Carayon, organizer of China Join. “These are attention-grabbing alternatives for individuals who are prepared to look deeper into it.”