Four Highlights from the 2020 Tmall Beauty Awards

During the 2020 Tmall beauty awards, data on the performance of beauty products sold on Tmall was offered. Tmall now accounts for 30% of all cosmetics sold in China. Tmall’s beauty sector grew by 61% and had 260 million consumers in 2019. 16 beauty brands recorded over 1 billion RMB in annual turnover and over 430 thousand new products were introduced to Chinese consumers Tmall’s beauty sector continues to grow strongly despite the negative influence of COVID-19. Tmall Beauty released its “Spring Thunder Plan” to promote the development of the beauty sector, and to help support small and medium-sized beauty brands.

On April 13, the sixth Tmall Beauty Awards were held online. The awards are an important annual fixture for the beauty industry and are a good opportunity for stakeholders to review the past year and get insights into industry trends. Here are four highlights of this year’s ceremony.

2019 Tmall Beauty core data

- 61% growth rate

In 2019, the growth rate of the Tmall Beauty sector was 61%, much higher than the average increase rate of the online beauty sector (33%).

- 260 million consumers

On Tmall, there are 260 million beauty product consumers, 260 million personal care product consumers, and 300 million household cleaning product consumers. These three categories have about 100 million shared consumers, adding up to nearly 400 million consumers. Among them, Generation Z is the leading consumers of beauty and personal care products.

- 16 Beauty brands entered the 1 billion club

On Tmall, a total of 16 beauty brands recorded an annual turnover in excess of 1 billion in 2019, including Lancome, L'Oreal Paris, Perfect Diary, Estee Lauder, M.A.C, Philips, OLAY, SK-II, P & G, WIS, etc. Among them, Perfect Diary and WIS are domestic brands.

- 430 thousand new products

Tmall Beauty launched 430 thousand new products in 2019. ^[1]

2020 Tmall Beauty Awards

Award-winning brands

- Superbrands

OLAY

ESTEE LAUDER

KERASTASE

- Super new product brands

HomeFacial Pro

SK-II

GUERLAIN

- Innovative marketing

P&G

CHANEL

L’OCCITANE

3CE

LUX

- Excellent domestic brands

Florasis

CHANDO

LITTLE DREAM GARDEN

- Excellent new retail brands

OLAY

HELIJIA

WATSONS ^[2]

Tmall was well placed to buffer economic impact of Covid-19

According to data offered by Kantar, the beauty sector in all channels fell by 13%, but there was 7% growth online. For comparison, the growth rate of the beauty sector on Tmall reached 41% in the same period, and 50% in March, much higher than other platforms. Tmall Beauty now accounts for nearly 30% of all cosmetic sales in China.

The beauty and cleansing field took the lead in recovery after the epidemic. In March this year, sales in Tmall ’s body care segment grew by 71% year-on-year, hair perm and dye products increased by 92%, lotion and facial cream increased by 86%, facial essence increased by 108%, and perfume increased by 55%.^[3]

Spring Thunder Plan

Tmall Beauty released the "Spring Thunder Plan" for SMEs

To help the survival of small and medium-sized brands, a new plan named “Spring Thunder Plan” was announced by Alibaba Group Vice President, Gu Mai. The plan has three parts: increase the support to small and medium-sized brands, help the transformation of OEM and ODM factories, and accelerate the incubation of 1,000 new brands with annual sales of more than 10 million Yuan.

Also, Tmall will establish long-term cooperation with 12 groups such as PROYA and Johnson & Johnson this year to create a new brand incubation base and help grow the "Tmall model" of new product development. At the same time, it will also provide localized solutions such as 1-hour delivery, same-city delivery, and home delivery services to brands through the integration of other Apps from Alibaba Group, such as Taobao, Alipay, and Ele.me. ^[1]

Signing ceremony with Johnson&Johnson