Clean Beauty Asia

Looking back at 2022 it has been a tough year for China Lockdowns, uncertainty, closed borders all whilst the rest of the world opened up, travelled, met in person It was hard to watch from the outside and even harder from within This impacted many businesses – year 3 of not being able to travel in or out but also, more so the negative press coverage of China causing brands to put China on hold or reassess later This is not how all brands have tackled China – some saw the opportunity to double down and are reaping the rewards More are looking elsewhere – South East Asia has been a hot topic. I recorded a podcast with Kelly Hazemans who has worked in ecommerce in both China and South East Asia as a trade partner and a brand ecommerce head and now as a consultant. In this discussion we talk about: What you need to have a successful relationship with your trade partner Partnership Transparency Trust *it is not all a one way relationship – hint hint Online marketplaces in Asia. Exploring the differences between China and South East Asia market places – looking at costs, openness and integration Importance of your own .com site in SEA vs. China Explore the unique customer service landscape which is similar in China and South East Asia and demands the brands attention Listen to the full interview to gain a real insight into Ecommerce in Asia Do get in touch with Kelly directly on LinkedIn or her website

This episode I talk to the founders Sophy and Joanna, of La Terapia a Chinese premium haircare brand We hear about their story – why they launched the brands and the pain points that were not met by products on the market. The difference with Asian hair but that within Asia brands were still not meeting the need. Two major trends in Chinese hair care are: 1️⃣ Premiumisation – this is still immature, but we are seeing more western brands entering the market 2️⃣Segmentation – shampoo sells 4x conditioner but apart from conditioner consumers are starting to buy masks, look a scalp care and styling products What struggles do these founders have La Terapia is alone as a Chinese brand in the premium haircare space The overall market is still quite immature and dominated by L’Oreal’s Kerastase Building DTC brands in China is hard due to the ecosystem and the strength of the market places Internal struggle with putting themselves forward as founders – culturally this is not so accepted and can be seen as limiting if your brand is too associated with one person We talk about so many interesting topics. If you are a brand in or thinking about entering China or you are investing in Chinese brands LISTEN! And if you want to get in touch with the brand directly message them on Linkedin

Chinafication is a phenomenon that has been creeping up on us. China is 1/5 of the world’s population so brands are adapting for this market. Since the onset of Covid 19 China has turned increasingly inward. There has been a real – a decoupling Businesses have been forced to allow their China entities to be more independent. There are key areas that are increasingly difficult: 👉Data – New regulations 👉Money – flows tightened 👉Products – increased border checks, reduction in Daigous 👉People – flow from international to China, foreigners leaving and Chinese not travelling Successful International brands have been quick to recognize this and adapt to local trends In this podcast episode I speak to Rachel Daydou from Fabernovel based in Shanghai about how brands are Chinafying their strategies. What is Chinafication – it is brands becoming more sophisticated in the way they operate in China. I have talked here many times about localizing for China – it is truly essential for success. Here are 5 key areas where brands are adapting as identified by Fabernovel’s report: 1️⃣ Brand DNA – a local Chinese brand name 2️⃣ Product – adapting formulae or creating new products fit for local needs 3️⃣ Channels – need to use local channels 4️⃣ Communication – your story, hierarchy of messaging 5️⃣ Experience – O2O, pop ups and cooperations with Chinese brands National Tide (国潮) the wave of nationalism that has led to the rise of C-Beauty has made foreign brands stand up and pay attention. So if you are operating in China now or planning on entering what are the areas that are crucial to consider: Brand messaging & Product story telling Influencers to get your message out locally Coops with Chinese local brands to amplify your message If you are able O2O events In conclusion: Why should international brands localise for China? The days of Brands talking to consumer from the top down are gone. Successful Beauty brands all over the world are creating communities and conversations with their consumers. China is no different. Over the past 5 years Guo Chao国朝 National Tide has exploded in popularity giving rise to many Chinese beauty brands. But International brands are still very much desired. However to be a successful international brand in China now you need to prove you suit the local Chinese consumer’s needs. You need to appeal to their sensitivities and fully grasp just how different the China market is. Creating a tailored China strategy is essential – naming, messaging, assets, talent, social channels and NPD are all things that need to be considered.

Sephora USA is a destination most brands want on their roadmap Understanding their strategy is very important for many in the Beauty industry Jennifer Carlsson has taken a step back and done an in-depth and highly informative report into Sephora’s Skincare category. This 100 page report looks at 3 key areas 1️⃣ Brands >>> Full list of all Sephora stocked Skincare brands >>> Listed the brands that have been added and which have been kicked out >>> Looks at how these brands in Sephora perform on Instagram 2️⃣ Products >>> Analysed all products and pulled out those with the highest reviews/review scores/likes >>> List top 6 products across 6 skincare subcategories >>> Look at product trends – packaging & formulation >>> Overview of skin concerns and numbers of products to address them with average price 3️⃣ Statistics >>> Diversity of founders >>> Cruelty free and Vegan brands >>> Brand’s target audience >>> Pricing >>> Product packaging colours It is a very thorough report which is helpful to brands in Sephora, aspiring to get into Sephora or investors looking to see gaps in the market. I really recommend contacting Jennifer for more information on Linkedin or see her website. You may also want to hear about Top Tips for PR in China and Cross Border E-commerce in China.

K-Beauty has lost a bit of its shine Over the past 10 years western consumers have fallen in love with the fast paced, innovative products coming out of Korea But recently there has been less buzz However Korea continues to innovate and set Beauty trends across the globe. Here I talk to Holly Kim from Measure Commerce about the hottest Korean Beauty trends CLEAN BEAUTY AND VEGAN PRODUCT TRENDS Clean Beauty continues to be very popular in Korea but now Vegan is the hottest buzz word. MZ Generation consumers in particular look for products with vegan certifications. A few reasons why Vegan is so popular in Korea: 👉 EWG (environmental working group) has been popular with Korean brands as a sign of safety for several years and remains something brands use in their marketing 👉 Vegan has come up not particularly linked to food as very few consumers are actually vegetarian or vegan 👉 Vegan is synonymous with healthy living 👉 Vegan products are seen as mild and good for sensitive skin 👉 Vegan is thought to be good for the environment as well PRODUCTS FOR SENSITIVE SKIN & BARRIER REPAIR Koreans are very concerned about their sensitive skin. The sensitivity comes from overuse of products, procedures and surgery but it has spurred a demand for Skincare addressing sensitive skin. Barrier repair is very important in China as well but it is not linked to Clean Beauty like it is in Korea. There are many highly successful niche Korean Beauty brands focused on Clean Derma – efficacy is still at the heart of the marketing strategy. And they are mainly positioned at an accessible price point vs. luxury. CICA (Centella asiatica) INDREDIENT TREND Cica is an ingredient that is being used in K-Beauty originally to fight acne but now focused on calming for sensitive skin. It is a plant ingredient and it is being added to many products. It is a popular ingredient in Chinese medicine to treat redness and inflammation. K-BEAUTY’S POPULARITY IN SOUTH EAST ASIA Korean culture is extremely popular in south east asia from K-pop to K-drama and K-Beauty. Increasingly we are seeing Korean brands export to these markets and also locally brands being inspired by K-Beauty and creating their own products at a more affordable price point

Most brands I work with are great at PR They attract a lot of attention in their home markets through a strong PR strategy for FREE Then they come to China….. It is so different and this is a real point of frustration that the strategy at home can’t be replicated in China Here I talk to Nicky Wang from We Red Bridge a PR and marketing agency who work with many International niche beauty brands like Aesop, Fenty, Lime Crime. The key areas we discuss are: How PR in China is different from the west Understanding the difference between PR and Marketing in China The parameters brands should set to be successful with PR in China Niche brands must be focused on a specific audience to get cut through Your PR strategy needs to reflect your audience The pitfall of an activation only marketing strategy Pay to play in China and ways of getting some content for free The three main takeaways are: Set your objectives, timeline and resources at the outset Be Focused on who you are targeting, where you will reach them and how Be Bold – try new things, be daring. This market won’t wait for you It is a very interesting discussion. PR is closely integrated with marketing in China for niche brands but make sure you don’t forget it! It is essential for the long-term health of the brand.

Hello everyone and welcome to this episode of my interview series.⁣ The rise of Chinese beauty brands in the last few years has been meteoric But this has been within China and fueled by local consumers wanting to support local brands What is stopping these brands from global domination? Here I talk to Lisa Shiqi Yu about her recent thesis looking at exactly this. In this conversation we take apart where the real issues lie. First reviewing the fundamentals of building a brand: Supply Chain, product development is not a problem – the manufacturers who make these brands also make some of the world’s most sought-after international brands Distribution Channels – whilst the western channels are different from the Chinese ones this is not a major hurdle with the right partners in place Branding and marketing – this is where the problem lies We dive into Branding and why most Chinese brands are not brand led. They are marketing and product led and this leads to issues of longevity as well as difficulty communicating what they really stand for. In China these brands have seen huge success using all the activation methods available – livestreaming, KOLs, Private traffic communities etc but this does not = a true brand strategy On top of this we believe that it is not yet clear what C-Beauty stands for. And without a clear proposition to communicate overseas consumers will not latch onto it. We discuss Perfect Diary and what they are focusing on now as well as potential difficulties brands like Florasis with their very visible Chinese aesthetic. Definitely recommend you listening to this episode there are lots of insights into how Chinese beauty is shaping itself to go global!

Hello everyone and welcome to this episode of my interview series.⁣ Why does a foreign brand need a Chinese name? Many brands enter China without a Chinese name I have worked in the market for over 15 years, initially with big global players who all had their own Chinese names and often nicknames. More recently working with niche brands entering the market I have got a lot closer to the naming process and wanted to highlight it’s importance with this interview. Linda and Ching work at Red Ant Digital in Shanghai and have created Chinese names for many Beauty brands in the market. So why is it so important: 💡Pronunciation – many brand names are difficult for Chinese to pronounce due to the completely different linguistic roots 💡Memory recall – It is harder for non-native speakers to recall your brand’s name. If it is in Chinese characters you have a better chance they will remember it! 💡Comprehension – your brand name may mean something in English or it might be a play on words. But these aspects will be lost without a Chinese name 💡Search – Search volumes on Taobao/tmall are much high for brand’s Chinese name vs international name – back to the memory recall;) 💡Competitive advantage – don’t put yourself at a disadvantage vs competition by not having a Chinese name Now I have convinced you that you should have a Chinese name – what else do you need to consider: 1. When to create your Chinese name: Ideally on market entry, once you have your China strategy and trademark it quickly 2. What types of approaches are there to naming: Phonetic, semantic and contextual or a mix of all 3 3. Chinese names are usually 2 – 4 characters and you can pack a lot of meaning into those characters so whoever is doing the naming needs to really understand the essence of your brand that you want to convey to Chinese consumers 4. Your name will rarely be used on its own and mostly with your international name so it is not that your international name will be unrecognizable in China 5. Due to the complexity of the Chinese language you will always have a lot of opinions on your Chinese name – there is no perfect name for everyone 6. Some brands do not create a Chinese name – Charlotte Tilbury for example is known in China at CT Have a listen to these lovely ladies talk about something they have done for many brands – creating Chinese names for brands is a true art form and a fascinating process. If you want to find out more about Red Ant Asia  https://www.linkedin.com/company/red-ant-asia/  please drop them a note [email protected]

Hello everyone and welcome to this episode of my interview series.⁣ Today, we’ve got Patrick Rosevear who is an intellectual property lawyer and under cover counterfeit “detective” helping brands solve their counterfeit issues in China.   China has a reputation for fakes this mostly comes from the fashion industry but it is still a big problem for beauty brands as well   WHILST BEAUTY CUSTOMERS DO NOT KNOWINGLY WANT TO PURCHASE FAKES, SOMETIMES IT CAN BE DIFFICULT TO TELL THE DIFFERENCE It is worth your while checking out the size of the problem – even for brands who are not in China, if your brand has traction the chances are there will be someone faking it.   4 pieces of advice to get on top of the problem:  Own your trademark in China – to understand more about this see a previous episode with Mark Schaub   Get on top of counterfeit issues early by taking down links before anyone is making too much money!  Monitor it regularly every 3-6 months so you can act quickly  Many Beauty products are sold in private groups on WeChat which are impossible to search so you need to go to the wholesale platforms where the resellers are buying   You want to have a counterfeit problem in China  At least a small one but then you need to do something about it   Fake products happen in all categories and Beauty is no exception. These products can end up all over the world. Patrick Rosevear is focused on helping brands sort out this problem.   AS BEAUTY BRAND S A BEAUTY BRAND WITH SOME BRAND AWARENESS IN CHINA YOU WILL LIKELY HAVE SOME LEVEL OF COUNTERFEIT ISSUE.   So what should you do:  Make sure you own your trademark in China  Get on top of counterfeit issues early by taking down links before anyone is making too much money!  Monitor it regularly every 3-6 months so you can act quickly  Many Beauty products are sold in private groups on WeChat which are impossible to search so you need to go to the wholesale platforms where the resellers are buying   China is ever-changing to stay up to speed sign up for my newsletter on Cleanbeautyasia.com⁣ If you want to get in touch with Patrick Rosevear connect on  Linkedin: https://www.linkedin.com/in/patrick-rosevear-7878a846/

Hello everyone and welcome to this episode of my interview series.⁣ Today, we’ve got Ivy Shen, who has been working, operating brands in Cross Border since it started at Azoya who run many multi-brand retailers and international brands in China. Azoya is a borderless commerce group that helps international brands & retailers expand to the world’s largest e-commerce market: China. This is a great episode – some of the super interesting topics we cover:⁣ ⁣▪️ Where Cross border is heading – it is not going anywhere and has government support ▪️ There is still high demand for international brands but the need to differentiate is essential – showing functional value through technology as well as emotional value ▪️ Tips on how to compete with the strong local C-Beauty competitors ▪️ The importance of listening to the consumer – how to do this better through private traffic on WeChat ▪️ Key trends and super important advice This really is a great episode – Ivy knows her stuff. A must listen for brands in China or thinking about entering THE DEVELOPMENT OF CROSS BORDER E-COMMERCE IN CHINA HAS BEEN METEORIC It all kicked off in 2014 with milk powder…. and today…. Despite the changes in animal testing Cross border is still extremely relevant for Beauty brands. HOW TO COMPETE WITH CHINESE BEAUTY BRANDS This is a question that should be on everyone’s minds as you enter China Ivy Shen and I discuss some key tips for brands to incorporate into their strategy: 📌 Know and emphasize your point of difference – make it relevant for your Chinese consumer 📌 Look at your functional value – is it your technology or efficacy of a particular ingredient 📌 What is your emotional value to your target Chinese consumer – this is often forgotten and a huge differentiator for foreign brands 📌 Flexibility on product development – find ways to really listen to your Chinese consumers this is hard for brands on Cross border because there are so many layers but you need to find a way. TMALL HAS BEEN THE DOMINANT ECOMMERCE CHANNEL FOR FOREIGN BEAUTY BRANDS IN CHINA But that is changing there are new players shaking things up…. Ivy Shen and I talk about how Cross border ecommerce has evolved and where it is headed. Some key takeaways that are essential for every brand to know: 👉 The line between Cross Border and general trade shopping is blurring – consumers hardly see any difference in service or experience now 👉 Government policy continues to support cross border ecommerce 👉 We Chat is an increasingly important sales channel through private traffic groups conversion rates can be 10x higher than normal channels 👉 On We Chat brands get much more access to data, intelligence and can personalize their message and hence influence customers more 👉Douyin livestreaming and ecommerce is content driven and increasingly personalized a refreshing difference from Taobao/Tmall promotional model China is ever-changing to stay up to speed sign up for my newsletter on Cleanbeautyasia.com⁣ To connect with Ivy Shen and Azoya and hear more about the work they do - reach out:  Linkedin: https://www.linkedin.com/company/azoya Ivy: https://www.linkedin.com/in/ivy-shen-azoya/