Hello everyone and welcome to this episode of my interview series.⁣

Today, we’ve got Iris Chan, Partner at Digital Luxury Group (DLG) which is a full service digital agency supporting luxury brands, helping them find their luxury consumers. They primarily work with Chinese consumers.⁣

This is a great episode – some of the super interesting topics we cover:⁣

⁣🕵️‍♀️ Finding them – Start by looking at unprompted, peer to peer conversations social media about your brand, niche or competitors.⁣

Little Red Book and Zhihu are great sources of insight.⁣

👛 The pandemic has accelerated digital confidence but in China it has integrated online and offline more than ever before for example empowering Beauty advisors to live stream.⁣

👯‍♀️ Engaging with them – so many touch points for your brand. Don’t neglect customer service, even as a Cross border brand this is essential – make people feel special and answer them quickly!!!⁣

We also spoke about two big and important trends 💹that all beauty brands should consider:⁣

📈 The rise of the individual – consumers wanting to be treated by brands as the diverse and different people they are. This has really not been addressed in the Beauty industry in China yet. Brands have treated it as a homogenous group in many ways –⁣

THIS IS CHANGING 💣💣☄️⁣

👉Brands catered to the majority, often treating China like a homogeneous society⁣

👉KOLs did not specialize and few had strong points of view focusing more on a category like skincare or makeup⁣

👉Hair products focused on straight hair vs. tackling curly or wavy hair⁣

👉Only really 1 or 2 shades of foundation “because everyone has the same skin tone”⁣

These are some of the sweeping generalisations that I’ve heard but of course in a population of 1.4BN there is a lot of diversity⁣

📊 Duty Free – Hainan but other places will open as well and there is a huge opportunity for Beauty brands here. This will not disappear when international travel opens⁣

👉 New Retail is more advanced in China than anywhere else in the world – the mixing of offline and online.⁣

👉 Giving consumers a reason to go into store is important but also empowering in store Beauty advisors to be mini brand ambassadors online through live streaming has been a great shift⁣

👉 Customer service is one many CBEC brands neglect. China has strong service expectations when it comes to online purchasing. It is rarely a no contact transaction – they expect their questions to be answered fast and knowledgeable⁣

⁣

Cross Border e-commerce is currently a much simpler route to market but there is concern that next year once this process is fully established the government will start to regulate cross-border more closely.⁣

China is ever-changing to stay up to speed sign up for my newsletter on Cleanbeautyasia.com⁣

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To connect with DLG and hear more about the work they do – reach out:⁣

Linkedin: https://www.linkedin.com/company/digital-luxury-group-dlg-/⁣

Website: https://digitalluxurygroup.com/⁣

Iris: https://www.linkedin.com/in/irisivychan/⁣

Hello everyone and welcome to this episode of my interview series.

Today, we’ve got Johannes Walch who founded Sober Beauty with his partner Valentine.

Sober Beauty is a pioneer in Chinese Clean Beauty. Johannes and Valentine’s backgrounds are in management consulting and L’Oreal Product development and in 2019 they launched their own Clean Makeup brand in China.

They are passionate about Clean Beauty and optimistic about it’s growth potential in China

This is a great episode – some of the super interesting topics we cover:

💥 Clean Beauty is at a tipping point – more people know what it is and are curious about it

💥 The interest is pragmatic vs. ideological – it is focused on product safety, ingredients, and skin irritation

💥 Do not underestimate how informed your consumer is – don’t hide anything, talk to them as peers

💥 To succeed you need patience, money and careful planning

What are the key aspects of Clean Beauty that are resonating with consumers right now:

💥 Product Safety

💥 Lack of skin Irritation

💥 Specific ingredients and what that will do for my skin

💥 Is it safe for pregnant women to use

The awareness of Clean Beauty has grown both from abroad but also from the increase in Chinese brands talking about it.

Here is Johannes’ top tips for Clean Beauty brands entering now:

💥 The consumer is informed – don’t talk down to them, don’t hide anything from them

💥 Do not over charge for your products vs your home market. Value is important to the Chinese consumer

💥 Money – need to establish your brand

💥 Patience – gold rush for foreign brands is over but there is still a big prize

💥 Management attention – not to be taken lightly. Need time to carefully select the right partners.

I totally agree with all these tips – Clean Beauty has potential in China but it is not a copy-paste model – you need to tailor and design your strategy to set yourself up for success.

Cross Border e-commerce is currently a much simpler route to market but there is concern that next year once this process is fully established the government will start to regulate cross-border more closely.

China is ever-changing to stay up to speed sign up for my newsletter on Cleanbeautyasia.com

To learn more about Sober Beauty

Website: https://sober-beauty.com/

Instagram:  https://www.instagram.com/soberbeauty_official/

Or contact Johannes on Linkedin: https://www.linkedin.com/in/johannes-walch/

Hello everyone and welcome to this episode of my interview series.

Today, we’ve got  Lisa Yu from @genuinegerman.

Lisa Yu is a digital beauty native, previously working at L'Oréal China. She now works at Genuine German helping International Brands enter the China Market successfully.

In this interview we discuss the rise of C-beauty – have you heard of HomeFacial Pro? The speed we will see global Chinese beauty brands and how they are developing.

WHAT ARE THE FEW REASONS LISA & I ARE OPTIMISTIC:

Capital has flooded to homegrown Chinese Beauty brands. Not just Chinese capital but investors all over the world have piled in.

Government Policies favour local brands and this will only continue

There is a shift from Chinese brands towards longer-term brand-building tactics vs short term sales focus

More focus and investment on product R&D vs just using OEM. Will we see a Global Chinese beauty brand in the next 5 years? YES OR NO let me know below

COLOUR COSMETICS FOR FOREIGN BRANDS – THERE IS STILL OPPORTUNITY!

Lisa Yu & I discuss how some of the youngest girls in the workforce today use makeup

It is not uncommon to see girls coming to work bare faced in China (there is nothing wrong with this) - in the past many girls just didn’t use make up

Now

You see their social posts and they are out with their friends in full, incredible makeup but in the office still bare-faced

Why

Time, inclination and skills. Many feel they don’t know how to do “office makeup”

Whilst the use of makeup has grown a lot in China there is opportunity. Lisa and her team operate two very low price point European makeup brands in China hear more about their success 

BODY CARE CAN BE FUN – NEW INTEREST IN THIS CATEGORY IS EXCITING FOR BOTH DOMESTIC AND FOREIGN BRANDS

The body care category in China has been dominated by large, mass market players. But things are changing – younger consumers are looking for brands to have more personality.

Lisa talks about rocking zoo a Chinese hair and body care brand doing well which was set up by a L’Oreal China alumni.

There is lots of great info and food for thought in this episode – China has plenty of opportunities and of course threats. The more you can inform yourself before you dive in the fewer mistakes you are likely to make!

To get in touch with Lisa:

Her website: lisashiqiyu.com

Her Linkedin: https://www.linkedin.com/in/lisashiqiyu/

Genuine German: https://genuinegerman.de/

Hello everyone and welcome to this episode of my interview series.

Today, we’ve got  Carol Zhou from Shiseido.

Carol Zhou currently heads up Innovation and investment for Shiseido in China. This is a great discussion about the latest trends in Skincare.

Key Highlights

👉 The rise in holistic beauty – beauty foods, supplements and more

👉 Medical Beauty boom still has a long way to go vs. Japan & Korea

👉 Sensitive skin market is increasingly important for care post medical treatment

👉 The importance of experts – dermatologists and plastic surgeons as KOLs

👉 The struggle with truly personalised skincare in China

Advice for niche brands

✅ Define your consumer target carefully – make it niche

✅ Tmall traffic has decreased recently as alternatives pop up – look carefully if it is right for your brand

✅ Create a story and tell it so people remember you

If you are a beauty brand or an investor this really is 20 minutes of insights that is definitely worth a listen.

To get in touch with Carol connect on

Linkedin: https://cn.linkedin.com/in/carol-zhou-5a53472/zh-cn

Shiseido website https://corp.shiseido.com/en/

Hello everyone and welcome to this episode of my interview series.

Mette Knudsen is the CEO of Knudsen&CRC who runs a consultancy supporting brands through the registration process – she shares her on-the-ground experience of the new laws.

This is a great discussion about Animal testing regulation changes in China that came into effect on the 1st of May.

Key highlights

🌟 3 reasons why animal testing would still be required:

1. Efficacy Claims – whitening

2. New Ingredients – to add any ingredients not already on the safe list, animal testing will be required

3. Special use cosmetics – sunscreen, hair dye, children’s products

🌟 3 struggles brands are currently encountering:

1. GMP certification authorized by the government of manufacture

2. Responsible agent

3. Time to market

Advice for brands

✅ Get your documents ready – this is the main thing to hold up the process. Efficacy claim support is crucial

✅ This new process requires brands to give a lot of information- your raw material suppliers, source of ingredients, production process, etc

✅ Do not appoint your distributor as your responsible agent – get a 3rd party to support until you set up officially in China

Cross Border e-commerce is currently a much simpler route to market but there is concern that next year once this process is fully established the government will start to regulate cross-border more closely.

China is ever-changing to stay up to speed sign up for my newsletter on Cleanbeautyasia.com

Listen to the audio for all her tips and if you want to get in touch, Mette is reachable on:

LinkedIn: https://www.linkedin.com/in/mette-knudsen

Email: [email protected]

Hello everyone and welcome to this episode of my interview series.

Charlie Gu is the Founder of Kollective influence. A marketing agency that focuses on helping brands reach Overseas Chinese Consumers mainly through working with Chinese influencers in the US and Canada.  Is your business a beauty brand and wants to operate in China? Are you looking to build demand in China prior to market entry?

Create consumer demand for your brand in China BEFORE you enter.

Don’t just dive straight into the world’s most competitive beauty market.

In this interview with Charlie Gu, we discuss the importance of the overseas Chinese community living in the US.

This is a great discussion where we dive into tactics of how your brand can start its China journey

Key highlights

🌟 Overseas Chinese living in the US are a powerhouse in terms of spending and influence

🌟 Leverage this community on your doorstep to gain feedback and awareness for your brand in China

🌟 Do your homework – work through your brand story and work out why Chinese consumers will be interested in your products

🌟 Think about your customer journey – how will they discover you? Not all channels are made equal.

🌟 KOCs – Key opinion consumers in the US are really important to build authenticity.

🌟 Chinese KOLs living in the US play an important role do drive awareness.

🌟 It is crucial to target your message for your specific audience in China

👉 Why is the product suitable for Chinese skin, hair,

👉 Don’t be afraid to “Geek out” – Chinese consumers love the details of why it works and what ingredients help with specific issues

The overall message is, do not rush this. China is a big opportunity but set yourself up for success with a detailed plan and with enough demand before launching yourself in!  

German Torrado is the managing director of Genetisis E-commerce which focuses on supporting International brands by using their unique data analytics model. Genetisis use multiple sources of data to help shape the strategies for E-commerce operations and Digital Marketing activities in China in real time.

Thank you so much German for sharing your knowledge here at Clean Beauty Asia.

Is data informing your market decisions in China?

Gone are the days of investing and easily getting a great return. Now everything a brand does needs to be optimized.

Data is a crucial part of this process. Many people tell me access to reliable data in China is very difficult. This is only part of the issue.

In this episode, I talk to German Torrado from Genetisis which is a data analytics model that aims to help brands optimize their plans and investments in China.  

👉 Growing cost of marketing in China. Costs on e-commerce platforms have increased 4x in the last 4 years

👉 Conversion rates are low and ever-increasing numbers of competitors

👉 Unfocused promotions because of blind investments with lack of information

👉 Real-time data so you can analyze in China time!

How does it work?

👉 Brand dashboard – tracking all your own data from anywhere you are sold online, your social media accounts all in real-time

👉Competitor dashboard – you define your competitor set and the dashboard will keep track of their promotions, pricing, product bundling, social media activity

This is a comprehensive tool and well worth brands investigating to optimize their brand strategy as well as daily operations in China.

If you want to get in touch with Genetisis and German Torrado connect on linkedin https://www.linkedin.com/in/germantorrado or see their website at https://www.g-commerce.cn

German Torrado is the managing director of Genetisis E-commerce which focuses on supporting International brands by using their unique data analytics model. Genetisis use multiple sources of data to help shape the strategies for E-commerce operations and Digital Marketing activities in China in real time.

Thank you so much German for sharing your knowledge here at Clean Beauty Asia.

QUESTIONS

Is data informing your market decisions in China?

Gone are the days of investing and easily getting a great return. Now everything a brand does needs to be optimized.

Data is a crucial part of this process. Many people tell me access to reliable data in China is very difficult. This is only part of the issue.

In this episode, I talk to German Torrado from Genetisis which is a data analytics model that aims to help brands optimize their plans and investments in China.

Want to know what to watch out for when negotiating with a distribution partner in China?

In this interview I talk to Charlotte Mantoux a partner from LEAF law firm. LEAF specialise in Mergers and Acquisitions supporting clients with their China market entry.

Charlotte has a lot of experience helping brands navigate the legal side of partner agreements.

Her first piece of advice BEFORE you do anything – Protect your IP.

We look at 3 types of structures to enter the China market:

TRADITIONAL DISTRIBUTOR – What to watch out for:

INCUBATOR – distributors or trade partners want to take a stake in brands

WHY?

📌 They want a distribution lock in so you won’t be able to change distributors in the future

📌 OR They want a strategic investment that will be lucrative in the event of  future sale 💰💰💰💰💰

The distributor builds the brand in China but ultimately doesn’t benefit from the upside if the brand is sold so they want to fix this!

Charlotte shares lots of watchouts if you are considering this approach as well as 3 structures:

1️⃣ Invest directly in the holding company for equity

2️⃣ JV dedicated for China market

3️⃣ Non-Equity mechanism

Being careful about what information each structure will give the distributor access to is important – formulations and pricing for example.

Listen to the video for all her tips and if you want to get in touch she is reachable on Linkedin at: https://www.linkedin.com/in/charlotte-mantoux-1b88b054/ or through LEAF’s website https://www.leaf-legal.com/

Mark Schaub and I discuss the details of the updated regulations for cosmetics in China & some key areas of concern:

1. A local responsible agent. A lot more responsibility is being placed on this party and with the unknowns of how this will play out means that brands may find it harder to find an independent responsible agent willing to take on this risk.

2. New Ingredients - the level of information that will need to be supplied and the IP issues associated

3. The QMS (equivalent of a GMP) from your manufacturer certified by your government authority and approved by the NMPA in China.

👉This is being looked at on a country by country basis so if you manufacture in a country where Beauty is not a top industry you may be waiting longer

But what with China there is always a long game and that may well be getting more brands to manufacture domestically.  In 2014 Beauty products manufactured in China no longer required animal testing. 

So despite seemingly making it easier for Cruelty-free brands to enter the market it may be a clever way of getting more beauty brands to produce locally in China. Have a listen to our discussion and tell me what you think.