Mastering China’s social commerce: 4 tactics for beauty brands

As China’s beauty industry rapidly evolves, traditional methods employed by foreign brands are swiftly losing traction. With the C-beauty market projected to reach $57 billion by 2025 and rising consumer demand for localized, innovative approaches, Western beauty brands must rethink their strategies to navigate this complex landscape. Social commerce platforms like Xiaohongshu (RED), which boasts over 300 million monthly active users, are now central to consumer engagement, making mastery of these platforms essential for success. This summer, premium haircare brand Arkive entered the Chinese market via Xiaohongshu and Douyin. Despite launching in July, Arkive’s monthly revenue has already exceeded 100,000 RMB ($14,000). Arkive Headcare CEO Harry Zalk shares, “We were advised to select the products for launch that best suited the Chinese market. We built custom storefronts and localized our UK content to make the product as appealing as possible to Chinese customers. This market preparation has laid the foundation for our success to date.” Recent data underscores a shift in consumer behavior toward social commerce. Xiaohongshu’s recent valuation of $17 billion, backed by investors including Facebook, reflects its growing importance in the market. Last year, Xiaohongshu reported $3.7 billion in revenue, nearly doubling its previous figures. As modern Chinese beauty shoppers prioritize localization and creativity – 53% of whom expect brands to incorporate authentic Chinese cultural elements in their advertising – foreign brands need bold solutions to compete with domestic C-beauty players. Here are four actionable strategies, based on insights from YASO’s whitepaper Gardenomics: Harnessing the Power of Social Commerce in China’s Beauty Sector, to boost brand impact in China’s competitive beauty market. Localize product naming with research Entering the Chinese beauty market requires comprehensive market research and consumer insights. Brands must conduct thorough focus groups, social trend analyses, and localization strategies — particularly in product naming. For instance, L’Oréal’s Revitalift Eye Cream was renamed ‘purple flat iron (紫熨斗)’ based on consumer feedback, highlighting its power to lift eye wrinkles like an iron. This distinctive name immediately gained traction across social platforms, significantly driving customer engagement and impacting sales. On Tmall, the brand has sold over 40,000 pieces in a month. Takeaway: Invest in focus group testing to discover product names that resonate with local tastes, while also paying close attention to packaging and texture preferences. Always perform intellectual property checks to avoid potential conflicts. Consider niche integration through gaming and mini-dramas The emergence of demand-seeding channels beyond traditional broadcast and social media platforms offers brands new avenues for engagement. Integrating products into popular entertainment formats, such as mini-dramas and gaming franchises, can significantly boost visibility. Kiehl’s 2023 collaboration with Genshin Impact — a popular game featuring nature elements that align with Kiehl’s natural ingredients ethos — helped boost brand visibility. Although specific sales numbers remain undisclosed, L’Oréal’s Consumer Products Division, which includes Kiehl’s, saw 12.6% growth in China in 2023. For brands with smaller budgets, partnerships with key opinion leaders (KOLs) or content creators can amplify product visibility before launching larger campaigns. Takeaway: Partner with gaming franchises or mini-dramas to integrate beauty products into their narratives. These emerging channels can help brands connect with younger audiences and enhance their storytelling. Use content storytelling to resonate In today’s market, creating community around a brand is crucial. SK-II’s Marriage Market Takeover campaign, which addressed societal pressures on women, sparked a national conversation. This campaign not only positioned SK-II as a culturally empathetic leader but also drove a 10% increase in sales following its launch. In 2021, SK-II expanded its storytelling efforts through its film studio, SK-II Studio, releasing short films like The Center Lane, which tells the story of a competitive swimmer returning to her passion. This initiative resonated with consumers and further solidified the brand’s narrative. Takeaway: Develop localized stories that resonate with your audience’s values and experiences. Use diverse channels, including social media and livestreams, to foster interactions and build loyalty. Creating relatable narratives can nurture long-term relationships, driving repeat purchases. Evolve your livestreaming approach The final phase of the social commerce cycle, known as ‘plucking,’ converts potential customers into paying ones. While major shopping festivals like Singles’ Day dominate sales, brands can also capitalize on niche occasions. For example, Aesop’s International Women’s Day campaign transformed a local bookstore into a space celebrating female authors, resulting in substantial social media engagement and increased foot traffic. Livestreaming has become a cornerstone of social commerce, with brands like L’Oréal running around-the-clock streams. Zara’s foray into livestreaming has yielded impressive results: within six months of launching its livestreaming strategy, Zara achieved a substantial increase in online sales. This rapid growth reflects the effectiveness of engaging content and direct consumer interaction. While costs can be significant — KOL commissions often reach 50% of sales — viewing initial livestreams as a break-even opportunity can help secure better terms in future negotiations. Tom Pamment, Head of International Sales for Faith In Nature, a leading natural skincare brand says, “We have plans to invite KOLs to our production facility in the UK to run livestreams so they can see how we use all-natural ingredients to make our products. Giving this insight will help us develop deeper connections with our consumers and cut through in a crowded market.” Takeaway: Explore niche marketing opportunities and seasonal events to create engaging sales campaigns. Invest in livestreaming to strengthen consumer interaction and boost brand visibility. As China’s beauty market grows more competitive, foreign brands must embrace innovative strategies to succeed. The tactics above offer a blueprint for both established brands and emerging startups aiming to thrive in this dynamic landscape. Adam Doffman is a trends analyst at YASO, a social commerce technology company focused on launching and operating beauty and personal care brands in China on channels such as Xiaohongshu, Douyin and Tmall.

Mastering social commerce: 4 tactics for beauty brands

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Mastering social commerce: 4 tactics for beauty brands