04.23.12
Beauty sales through the Internet in China have been growing at a rate of nearly 200% since 2006 and are estimated to be worth nearly $8 billion at the retail sales level in 2011, making it the largest Internet beauty market in the world—According to the new report Beauty Retailing Through Direct Sales in Emerging Markets 2011: Channel Analysis and Opportunities from worldwide consulting and research firm Kline & Company.
“This news is astounding,” remarks Karen Doskow, industry manager at Kline, “and to put this into perspective, Chinese online beauty sales in 2011 are nearly equal in size to the entire beauty market for France, which is the largest market for cosmetics and toiletries in Europe. Furthermore, Chinese Internet beauty sales are nearly nine times larger than the U.S. Internet beauty market.”
Undoubtedly, marketers and retailers alike will be wondering how did this market get so big.
“The rapid growth of Internet usage over the past five years has given way to a tremendous surge in sales and availability of local and foreign cosmetic and toiletry brands,” explains Li Wang, vice president of Kline Asia. “The number of online users and buyers in China has skyrocketed. Internet user numbers in China approached 457 million in 2011, up from 137 million in 2006. Online buyers now total some 205 million in 2011.”
Further driving the online phenomenon are “e-malls,” such as Tiantian.com and Alibaba’s Tmall in China, that enable customers to buy from a wide range of domestic and foreign skin care and makeup brands in a convenient one-stop shop. “We expect the growth of these portals to remain quite robust, driven by continually improving socio-economic dynamic, as well as an increasing appetite for Internet convenience among all consumers,” adds Doskow.
“This news is astounding,” remarks Karen Doskow, industry manager at Kline, “and to put this into perspective, Chinese online beauty sales in 2011 are nearly equal in size to the entire beauty market for France, which is the largest market for cosmetics and toiletries in Europe. Furthermore, Chinese Internet beauty sales are nearly nine times larger than the U.S. Internet beauty market.”
Undoubtedly, marketers and retailers alike will be wondering how did this market get so big.
“The rapid growth of Internet usage over the past five years has given way to a tremendous surge in sales and availability of local and foreign cosmetic and toiletry brands,” explains Li Wang, vice president of Kline Asia. “The number of online users and buyers in China has skyrocketed. Internet user numbers in China approached 457 million in 2011, up from 137 million in 2006. Online buyers now total some 205 million in 2011.”
Further driving the online phenomenon are “e-malls,” such as Tiantian.com and Alibaba’s Tmall in China, that enable customers to buy from a wide range of domestic and foreign skin care and makeup brands in a convenient one-stop shop. “We expect the growth of these portals to remain quite robust, driven by continually improving socio-economic dynamic, as well as an increasing appetite for Internet convenience among all consumers,” adds Doskow.