“Consumption in 2nd-tier cities is the highest in the Chinese beauty market”
“Consumption in 2nd-tier cities is the highest in the Chinese beauty market”
  • By The K Beauty Science
  • Accepted 2019.11.03 10:05
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JD.com. Terry Wang, General Manager of JD Beauty
Terry Wang

Q. What did you present at the 2019 INNOCOS Seoul summit?

A. I shared the real business experience and introduced JD.COM. JD.com is China’s largest retailer, online or offline, thanks to its guarantee of authenticity and quality. This makes JD.com the ideal partner for brands and retailers in China since JD.com can ensure protection of their IP as well as provide the best customer experience. We offer unparalleled speed in logistics thanks to our in-house logistics infrastructure which covers 99% of the country’s population. Approximately 90% of our orders are delivered either same day or next day. If a customer places an order before 11 am, then the customer will receive the order before 11 pm. If a customer places an order before 11 pm, then the customer will receive it before 11 am the next day. In addition to providing access to the best brands, we have also developed a white glove delivery service, JD Luxury Express. Our couriers wear formal attire, including white gloves, and drive electric cars to deliver products, adding a highly-personalized, intimate and innovative offline element to the e-commerce experience.

Q. What are the advantages for using JD.com service?

A. JD.com has a deep understanding of the Chinese beauty market through big data and can share insights with brands to help them maximize their impact in the Chinese market. As brands seek to provide integrated marketing solutions, such as IP, traffic, premium consumer experiences, and connecting with the young, more and more beauty brands are choosing to partner with JD and many opt to release exclusive products on our platform. For example, when SK-II, a brand highly popular with young consumers launched a limited edition product on JD this year, sales surpassed RMB 1 million within just five minutes of the promotion’s launch.

Q. Please tell me about the current situation in China’s online distribution market.

A. The global beauty market witnessed growth of 4.12% in 2018, with China’s beauty market growing stronger, and online sales are even faster than offline, according to China's National Bureau of Statistics. According to JD data, young people from 1st and 2nd tier cities are the main consumers of beauty products, with 18-34 year old consumers accounting for 63% of revenue. Consumption in 2nd-tier cities is the highest, accounting for 27% of revenue, followed by consumption in 6th tier cities, accounting for 20% of revenue. Men tend to buy more expensive products; young consumers spend more, according to JD’s data.

Q. Is there good example working with Korean brand to share?

A. JD has a strong partnership with top Korean beauty Sulwhasoo. The brand opened a first party story on JD.com in early 2019, and saw over RMB 41 million in revenue just within the first month - 3 times of the average sales of Sulwhasoo on other platforms. Since opening, the store has attracted a total of over 2 million followers. Men's series products sold in 12 hours through store on JD equal to total online sales for nearly 2 years.

Q. Please advise to Korean companies want to start a business in China.

A. There are many opportunities for Korean brands in China. The growth in China’s beauty market is faster than the pace of market growth globally, and growth in online sales in China is faster than offline retail. JD.com which is well-known for its authenticity guarantee, fast delivery, and emphasize on providing a superior consumer experience. We can help luxury brands develop marketing solutions to help them target their potential consumers. Leveraging JD’s big data, we share insights with our brand partners to help them to understand their target consumers better. JD.com pays much attention to product selection. We have professional buyers who know JD’s beauty consumers profile and can help select products which will be popular on our platform.

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