ONLINE SHOPPING IS FAST BECOMING THE NORM Total
ON-LINE SHOPPING IS FAST BECOMING THE NORM Total E-Commerce sales growth and value in China § It is finding acceptance across all age groups, income levels and regions. § E-commerce in China represents 10% of all retail sales (6. 4% in USA) for a market of 430 Billion UDS (300 billion in USA), representing 30% of the global B 2 C ecommerce. $ 1, 200 50% 47. 0% 45% $ 1, 000 40% 35. 0% $ 800 32. 0% 30% 27. 0% $ 600 25% 22. 0% $ 400 20% 16. 0% 15% 10% $ 200 5% $- 0% 2013 2014 2015 2016 E-Commerce Value (bln USD) 2017 Growth % 2018
CROSS-BORDER E-COMMERCE EXPLODES § TMall Cross-border sales doubled in 2015 vs 2014. § Approval to set up 12 more pilot zones § At the same time, HK and Macao Retail sales of SASA sales dropped by 11. 1% in 2015 vs 2014.
China Cosmetics Online Market Share § TAOBAO+TMALL account for around 60% of total online cosmetics market share in 2016. § It plays a dominant role in China online market. Nota: Xiaohongshu (5% of market share) has been launched in December 2014
COSMETIC CATEGORY BENEFITS MOST OF THE CROSSBORDER OPPORTUNITY – next to BABY CARE § Baby care*: 32% § Cosmetics*: 25% § Food*: 24% § Apparel: 13% § Others: 6% *Baby care, Cosmetics and Food categories normally need CFDA registration
OTHER TRENDS § Growing Importance of Korean Brands § In 2015, Korean cosmetics industry sold more than 1 Billion US$ worth of goods in China § Growing Importance of Domestics Brands § In 2015, local Brands such as PEICHOIN, KANs, PROYA have accelerated their development and become major players on the domestic market. § Combined with the cross-border, create an extremely competitive market
CHALLENGES § Price Transparency § The role of Social Media: peer rating, peer reviews § Chinese Customers prefer to buy at Platforms instead of Brand websites OPPORTUNITIES § Chinese customers are now travelling digitally § With Cross border, the market is becoming totally open : § No more animal testing § No more CFDA registration It’s never too late to come to China!
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