Chinese beauty brands woo Southeast Asian customers on TikTok and Shopee as saturated home market stagnates

  • 📰 asiaonecom
  • ⏱ Reading Time:
  • 60 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 27%
  • Publisher: 59%

South Africa News News

South Africa South Africa Latest News,South Africa South Africa Headlines

A growing number of Chinese beauty brands are looking to woo overseas consumers in less competitive markets amid weakened domestic consumption. Over the last two years, Chinese cosmetics companies that sell online have been eyeing neighbouring markets like Japan and Southeast Asia for expansion before trying their luck in more competitive Western markets. In addition to dozens of smaller players...

A growing number of Chinese beauty brands are looking to woo overseas consumers in less competitive markets amid weakened domestic consumption.

These companies may have an easier time finding success in Southeast Asia, where Chinese brands often have an edge because of knowledge gained from operating in China’s highly competitive market, along with their access to flexible supply chains that allow them to produce cost-effective products, according to industry insiders.

As the internet economy slows in China, overseas e-commerce has provided new opportunities in booming markets such as Indonesia, Malaysia and the Philippines. Even amid slowing global economic growth, the internet economy has remained resilient in Southeast Asia, where it was expected to exceed U$100 billion gross merchandising value in 2020, according to a report that year by Google, investment firm Temasek Holdings and consultancy Bain & Company.

For China’s online cosmetics brands, there are other reasons for looking abroad beyond just escaping stagnant growth at home. Overseas markets have less competition, they say, and consumers in neighbouring countries like those in Southeast Asia appreciate similar consumer aesthetics. E-commerce rules in these markets may also be easier to incorporate into their platforms.

 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.
We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 10. in ZA

South Africa South Africa Latest News, South Africa South Africa Headlines