Online Cosmetics Business:A Growing Market in China

Cosmetics are one of the most popular products to purchase online. In 2006, 40 million perfume and cosmetic items were sold through Taobao. According to a recent survey, 70% of online buyers have purchased cosmetics. Because of the huge market potential, some international cosmetics companies, like P & G, have opened online stores at Taobao.

As one of these online shopaholics, I always buy cosmetics online and I noticed that my friends are doing the same thing. We are willing to spend a lot of money to maintain and improve our looks. Compare to the price of real stores, online prices are much cheaper. You can make your own decision instead of listening to long winded sales assistants. Also it’s easier to share shopping experience’s online and this way you can find out what’s trendy.

One of the brands that I currently favor is Kiehl’s, a premium American cosmetics brand. Famous Taiwanese actress ‘Big S’ recommended Kiehl’s in a book, and following this I, like many other Chinese girls, began to buy these products. At that time there were no stockists in China so many online sellers started to import their products. Due to the huge internet demand, Kiehl’s has recently launched its first Chinese retail space in Beijing. The store racked up sales of RMB 200,000 on the first day alone and sold out of the company’s major products within a week.  The popularity of the products was far beyond the company’s expectations and their Shanghai store is set to open August 28 .

As for local cosmetics brands I use, Sinoway Herb,  a Chinese skin care brand which was previously only known within Shanghai. After creating an online store at Taobao, their products have become one of the most popular local brands in China and their domestic sales have dramatically increased.