Cosmetic and skincare sell a beautiful yet disguised dream to women, often with huge profit margin as long as you can sell. In China, if you want to launch e-commerce, you are more or less under the spell of Tmall. Perhaps time to find out who are those top cosmetic sellers on Tmall.
A local agency called Brandtrends just released a list of top 100 cosmetics brands in China ranked by their social media influence. Honestly, the report looks very akin to L2Think Tank’s Digital IQ beauty chapter for China.
Anyway what really caught me eyes when poring over this 40 pages report is its analysis for cosmetics brands on Tmall.
In this ranking list, 51 out of these 100 cosmetics brands already launched Tmall flagship stores.
Among these 51 brands:
- 36% are mass brands
- 20% premium brands
- 15% are pure online brands which mean their distributional channel is mainly via e-commerce, often without brick&mortar stores
- 10% are cosmeceutical
- 7% are makeup brands
And no big surprise, luxury cosmetics brand is minority and just around 2%. In fact just one luxury brand SK-II operates Tmall store right now.
As for top 10 cosmetics sellers ranked by sales in quantities for the first half 2013, they are
The top 3 performers here are all domestic and mass brands.
Finally I believe luxury cosmetics brands should shy away from Tmall.