Beauty brand lessons from a knockout Double 11

China’s Double 11, or Singles’ Day, shopping festival — the longest to date having started on October 8, delivered standout results across beauty categories this year. According to Yiguan Data, Alibaba (Tmall and Taobao) achieved a 51.3% share of beauty GMV (Gross Merchandise Value), up an impressive 18.3% Year-on-Year (YoY,) and the highest among e-commerce platforms. Tmall’s GMV surged 25.8% YoY, underscoring its beauty sales dominance. Douyin and JD.com followed with 26.6% and 11.8% of total GMV, respectively. Tmall revealed that 79 beauty brands exceeded 100 million RMB ($14 million) in sales, and skincare sales skyrocketed by 208.8% YoY last month, spurred by festival promotions. Notably, 45 brands surpassed 1 billion RMB ($140 million), a testament to the platform’s ability to boost growth even in a challenging economic climate. International brands: The usual heavyweights Global beauty leaders maintained their supremacy. L’Oréal, Lancôme, and Estée Lauder led the charge, with Tmall reporting over 50% YoY sales growth for brands like Helena Rubinstein, La Mer, and SK-II. In the pre-sale period alone, 13 international brands, including L’Oréal, Lancôme, and Clé de Peau Beauté, surpassed 1 billion RMB ($140 million) in revenue in just 10 minutes, reinforcing their role as top picks for consumers stockpiling high-end products. Jack Porteous, commercial director at Chinese cross-cultural agency Tong Global, also noted SkinCeuticals’ extraordinary success. It netted 700 million RMB ($97 million) in four hours thanks to its strategic focus on product efficacy and quality. “Livestreaming played a key role,” Porteous tells Jing Daily. “By blending third-party influencers with professional store-hosted livestreams, they effectively targeted ‘skintellectual’ consumers and built loyalty, driving growth in a tough market.” Domestic powerhouses hold their ground Chinese beauty brands also made waves. Proya, the standout leader among domestic brands, retained top spot on Tmall’s rankings throughout Double 11. During the pre-sale period, the brand smashed 1 billion RMB ($140 million) in just three minutes, with 72% of sales coming from its membership base. Meanwhile, rising star Kefumei broke into the top 15 from last year’s top 20, fueled by its viral Focus Cream. Selling largely via livestreaming, Kefumei achieved 10 million RMB ($1.4 million) in sales within 15 minutes of pre-sales launching, surpassing its entire 618 Festival performance. Ashley Dudarenok, founder of Chozan, points to the remarkable growth of newer domestic labels like Zhanmeiya and Aikeman. “Emerging brands capitalized on trends in repair and anti-aging products, posting growth of over 500%,” she says. “Proya, Doumei, and Shuangmei also approached 200% YoY growth — proof of domestic resilience and agility.” Luxury beauty in the spotlight High-end beauty emerged as a key driver of growth, with Tmall reporting that sales of beauty products priced over RMB 500 ($69.14) increased over 200% YoY. Notably, male grooming products in this price bracket surged 300%, and aromatherapy oils rose over 1,000%. Among the top-performing brands, La Mer led the luxury category, securing over 1 billion RMB ($140 million) in sales during a four-day membership event with Tmall’s 88VIP program, where 90% of La Mer’s pre-sale sales came from VIP members, says Dudarenok. Estée Lauder, YSL, and SK-II also posted double-digit YoY growth, with Valentino and Kiehl’s exceeding 100%. “Despite the luxury downturn, the festival saw strong sales for goods in premium price bands across categories, like mother-baby, personal care, and toys, as well as strong growth in emerging categories like outdoor and sport,” Jacob Cooke, founder and CEO at WPIC Marketing + Technologies, tells Jing Daily. “There’s a clear shift in consumer priorities towards experiences, hobbies, and health. With record-level platform subsidies and generous membership programs like Alibaba’s 88VIP, consumers actually showed a preference for premium branded goods during this year’s festival. Alibaba had a strong festival, with consumers returning to Tmall to make purchases,” he adds. '88VIP' membership a growth lever Tmall’s success this Double 11 was driven by strategic investments, including 100 billion RMB ($14 billion) spent on traffic acquisition and direct subsidies. The platform’s integration with WeChat Pay resulted in a 55% YoY surge in new user acquisitions, the highest in four years. “Alibaba played to its strengths this year, maximizing its ecosystem, offering premium coupons, and expanding 12-month interest-free installment deals,” Porteous says. “These strategies encouraged big-ticket purchases, particularly among its 88VIP members.” Boasting over 42 million members, Tmall’s "88VIP" membership program was instrumental in propelling sales growth. With 67% year-on-year growth among Gen Z members, it accounted for 25% of overall GMV. Proya added 600,000 new 88VIP members, and for brands like La Mer, 88VIP consumers generated the majority of sales. Dudarenok shares: “88VIP has been crucial for luxury and domestic beauty alike. These members are high-value customers who drive repeat sales and create a virtuous cycle of loyalty. Platforms that incentivize this group, like Tmall, continue to lead in this space.” Looking ahead This year’s Double 11 shopping extravaganza reaffirmed Tmall’s position as the go-to platform for both international and domestic beauty brands. With its robust ecosystem, innovative tools like 88VIP, and a strong focus on user engagement, it has set a high benchmark for competitors. However, as consumer preferences shift toward value-driven and premium goods, the race to innovate remains fierce. For brands, the lesson is clear: stay agile, leverage omnichannel strategies, and prioritize authenticity to resonate with China’s increasingly discerning consumers. As Double 11 evolves, so must the brands that seek to lead it.

Beauty brand lessons from a knockout Double 11

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Published November 12, 2024

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Beauty brand lessons from a knockout Double 11