Source from Cosmetic Observer
In China local beauty market, the platform that grows most rapidly is Douyin.
In the first half of this year, the local beauty market declined significantly. According to Syntun, during 618 shopping festival, the beauty sales online is 41 billion yuan, a YOY decrease of 10.2 billion yuan, nearly decreasing by 20%. The general market is going down, but Douyin is growing against the trend. According to statistics from feigua.cn, during 618, beauty category sales on Douyin is 7.021 billion yuan, a YOY growth of 126%, running way ahead than the general market.
Actually this is a miniature of the development of Douyin Beauty. The data from GUOYUAN Securities and HONGTANG Securities indicates, in the first half of 2022, GMV of beauty category on Douyin platform reaches 40.209 billion yuan, nearly equaling 1/3 of the GMV of TaoBao-related beauty in the first half of this year.
In detail, in the first half of 2022, Estee Lauder ranks the first in beauty category with the GMV of 0.962 billion yuan. Florasis and All Natural Advice rank 2nd , 3rd with GMV of 0.74 billion yuan and of 0.707 billion yuan. Moreove, PROYA is ahead of traditional national brands. Foreign-invested big brands, newly established national brands, traditional national brands and Douyin brands take“the four divisions of the world” on Douyin platform currently.
It’s worth noting that though Estee Lauder, Lancome and other foreign-invested big brands have joined Douyin, whether Douyin could keep these big brands still remains unknown. Just like the founder of Data insider Zhang Yang said: “International brands attach more importance on long term returns, they will assess if the platform only possesses the exposure value or possesses both the value of retaining users and of exposure. So if the returns don’t meet the expectations, these international brands may decrease inputs on the platform.”
The GMV of TOP 20 brands exceeds 9.3 billion yuan
China local big brands have performed slightly better
By analyzing TOP 20 beauty brands on Douyin platform from Jan. to June 2022, Cosmetic Observer found the following characteristics:
Firstly, skincare category leads all the categories, the proportion of beauty device is gradually increased.
Among TOP 20 brands on Douyin from Jan. to June 2022, the number of skincare brands far exceeds that of beauty makeup brands, the number of skincare brands remaining between 13-16 while that of beauty makeup brands being no more than 3.
From the GMV of the TOP 20 brands in the H1 2022, it can be seen that consumers more favor skincare products than beauty makeup products. According to statistics of Cosmetic Observer, among the TOP 20 brands which sold best in the H1 2022, the number of skincare brands is 15, the GMV reaching 7.05 billion yuan and accounting for 75.7% of the GMV of the TOP 20 beauty brands on Douyin.
Beauty makeup brands which are on the TOP 20 list are only Florasis and FV, and the two brands totally sold 1.067 billion yuan in the H1 this year, only taking up 11.46% of the total GMV. Among them, Florasis are consecutively on the TOP 20 list for 6 months, ranking 6th and 4th in April and May, and being the TOP 3 of the list in the rest 4 months.
Besides, beauty device brands also have had an outstanding performance in the H1 this year. Among them, the beauty device brand which sells best is YAMEN with the GMV of 0.492 billion yuan from Jan. to June, being on the TOP 20 beauty brand list for 6 months in a row and ranking 3rd on the list in Feb. Ulike, amiro also made it to the TOP 20 of the list.
Secondly, national brands had a narrow victory, foreign-invested big brands are chasing behind strenuously。
Seen from the total GMV, in the H1 this year, the total GMV of TOP 20 brands reaches 9.313 billion yuan, among them, the GMV of foreign-invested big brands on the list is 4.546 billion yuan while national brands win slightly with the GMV of 4.767 billion yuan.
Seen from the TOP 1 of the Douyin beauty sale list in the H1 this year, in Jan., May, June, the TOP 1 is either The history of Whoo or Estee Lauder. In the rest 3 months, the TOP 1 is either Florasis or All Natural Advice.
Seen from the number of brands that are on the TOP 20 list in the H1 2022, from Jan. to April, the number of national brands on the list was decreasing month by month, decreasing from 13 to 10. Though the number in May and June remained 11 and 10, the number of foreign-invested brands was more stable, basically there were 8 or 10 brands on the TOP 20 list.
In April and June, foreign-invested brands were speeding, accounting for half of the TOP 20 list, so foreign-invested brands and national brands did equally well.