Weakened domestic consumption is pushing a growing number of Chinese beauty brands to attract consumers from less competitive markets, such as Japan and Southeast Asia, reports the South China Morning Post.
In addition to dozens of smaller players like direct-to-consumer brands Flower Knows and Catkin, these include Perfect Diary, whose parent company Yatsen Global had a $617 million IPO on the New York Stock Exchange in 2020, and Florasis, which gained popularity in China because of Li Jiaqi, known as the “lipstick king” for his ability to sell thousands of tubes in a single live-streaming session. YouTuber Jeffree Star has also raised Florasis’ profile overseas.
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.
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