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Tmall Beauty Unveils Development Plan for the Next 3 Years

  •   15 Mar 2019
  •    Hedy He
  •  5438
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    Takehome:
    • Tmall Beauty plans to double its sales in the next 3 years and to introduce over 1,000 beauty brands, with a focus on imported brands and emerging brands.
    On March 4th, 2019, The 5th Tmall Beauty Awards Ceremony (China’s “Oscars” for Online Beauty Products) was held in Shanghai. Armani, Jo Malone, YSL and Givenchy won Tmall Beauty Super Brands in 2019, and Lancome, OLAY, Estee Lauder, Philips, L'Oreal Paris and SK-II were in the list of Brands with Annual Sales Exceeding 1 Billion in 2019. Award winning brands were selected from a poll using data sourced from Tmall users' search index, positive reviews, trial reports, purchase quantity and brand service standard.
            
    (Source: Internet)

    Tmall has become the world’s largest beauty products’ sales platform

    According to the data in Tmall Beauty Trend Report in 2019, cosmetics category year-on-year growth rate in different channels was seen in:

    Makeups category increased:

    • 14% in omni-channel;
    • 37% in the online market;
    • 60% in Tmall Beauty;
    Personal care category increased:
    • 7% in omni-channel;
    • 36% in the online market;
    • 45% in Tmall Beauty.
    This is the 4th consecutive year that Tmall Beauty products’ category has grown faster than the industry and overall online market.
    (Source: Tmall Beauty Trend Report in 2019)

    Makeup and personal care products have become the fastest growing business unit for Tmall and even Alibaba. In 2018, nearly 2,000 new cosmetic brands opened on-line shops in Tmall and more than 300 million consumers purchased cosmetics in Tmall. Tmall Beauty sales increased by 60% year-on-year, making it the online sales platform with the largest number of brands in the world.

    Tmall promoted the sales growth of cosmetic enterprises

    According to Pinguan [1], in 2018, L'Oreal China achieved the best sales performance with a high growth rate of 33%; Estée Lauder’s financial report mentioned that Tmall and Chinese market contributed to its brand business; P&G said that during the last 10 years in Tmall, overall sales of its brands have increased by 1000 times.

    Emerging brands have also grown rapidly on Tmall, such as HomeFacialPro, which has opened stores in Tmall for only 3 years, the annual sales have exceeded 500 million yuan; Chinese cosmetic brand Perfect Diary has accumulated more than 5 million fans.

    At 2019 Tmall Beauty Awards Ceremony, 9 international brands such as Tom Ford, 3CE, Cosme etc. signed contracts with Tmall. The joining of these new brands means that the mainstream high-end cosmetic brands in Europe, America, Japan and Korea have already entered Tmall.

    Tmall Development Plan in the Next 3 Years

    Hu Weixiong, the general manager of Tmall Fast Consumer Goods Division, announced at Tmall Beauty Awards Ceremony that Tmall Beauty aims at doubling its sales performance within 3 years, to maintain a growth rate of at least 50% in the next 2 years.

    To this end, Tmall will increase its investment in the beauty market, introduce 1,000 beauty brands to open stores in Tmall, and cultivate 50 single products with annual sales of over 100 million yuan and 10 emerging brands with annual sales exceeding 1 billion yuan. The plan will focus on the imported and emerging brands first, which will have a huge influence on cosmetic SMEs.

    And Hu also expects to have a cosmetic brand with annual sales exceeding 10 billion yuan in Tmall. In addition, Tmall will focus on promoting professional and intelligent beauty products such as ampoules, medical and intelligent beauty products in 2019.


    (Source: Internet)

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