Top Sales Strategy for Beauty Brands in China
Updated
Quick hello. I am Oliver Verot, and I help beauty brands grow in China. Beauty is one of the toughest and most rewarding markets here, and the rules changed fast. Local C-beauty brands now lead, buyers discover products on Xiaohongshu, and livestream closes the sale. Here is the sales strategy that works for beauty brands today, and where smaller brands should put their money first.
In the dynamic 2024 landscape of China’s beauty industry, navigating the complexities of e-commerce and distribution can be a formidable challenge for brands looking to establish or expand their presence.
SEO Agency China (SEO Agency China), a specialized agency dedicated to helping beauty brands succeed in the intricate Chinese market.
This article explores the strategic transformation and sales tactics that have propelled in China, and the case studies of Pechoin to success in the competitive beauty market in China.
Beauty Brands: from Offline to Online Dominance
Online Ascendancy: A Strategic Overhaul
This section delves into the tactical shift Pechoin undertook post-IPO, focusing on the online market. It explores the brand’s strategic decision to target the e-commerce space, marking a departure from its traditional offline channels.
Balancing Offline Roots with Online ecommerce Growth
This part examines the challenges and strategies involved in balancing Pechoin’s established offline presence with its booming online sales. It discusses the initial dual approach of managing flagship stores and distributor-led online sales, and the subsequent adjustments made in response to market dynamics and distributor feedback.
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The Impact of Going Digital: Direct Online Sales and Customer Engagement
Focusing on the transformative effects of Pechoin’s online strategy, this section analyzes how direct sales through e-commerce platforms led to a more customer-centric approach. It highlights the changes in customer service, brand building, and price management that came with this digital shift.
Market Expansion and Demographic Shift: Reaching a Broader, Younger Audience
Concluding with the results of Pechoin’s strategic overhaul, this part examines how the brand successfully expanded its market reach and altered its customer demographic profile. It underscores the brand’s growth from targeting affluent women in smaller cities to encompassing a broader, younger audience across all urban tiers in China.
Marketing and Operations: Adapting Swiftly to Market Dynamics
- Kantar’s Analysis: An analysis by Kantar on Chinese brand marketing revealed that a 50% reduction in a quarter’s media budget leads to a 19% decrease in brand activeness. A quarter without any media investment results in a 52% drop in brand activeness, and not investing in media for half a year leads to a direct 13% decrease in brand sales.
- Pechoin’s Understanding: While these statistics may not be specific to the beauty industry, Pechoin seems well aware of them. In the past three years, Pechoin’s marketing expenses were 1.497 billion yuan, 1.992 billion yuan, and 2.786 billion yuan, with the sales expense ratio reaching 39.9%, 42.98%, and 43.63% respectively. Concurrently, Pechoin has been actively exploring the most effective marketing and operational strategies to maximize profits.
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From In-Platform to Off-Platform Marketing
- Taobao’s Role: As a primary platform for offline brands transitioning online, Taobao is where brands, including Pechoin, focus their marketing efforts. In-platform advertising offers clear conversion paths and data, making ROI easy to monitor.
- Shift in Strategy: Due to a shift in the e-commerce and social media landscape, Pechoin faced challenges with in-platform ROI, leading to a 1.2-1.5 times increase in customer acquisition costs. Consequently, Pechoin gradually shifted its marketing budget from in-platform to off-platform channels, including Douyin, Xiaohongshu, Weibo, WeChat, and various websites and vertical interest platforms.
- Sales Expense Ratio: From 2018 to 2023, Pechoin’s sales expense ratio gradually increased, stabilizing at around 43% in 2022 and 2023. In-platform advertising accounted for 25-35% of total sales expenses, while off-platform advertising took up 60-70%. Of the off-platform budget, half went to Douyin and Kuaishou, with Xiaohongshu taking 20-30%, and Weibo and WeChat each accounting for 5-10%.
From Influencer to Self-Broadcasting
- Changing Taobao Landscape: The rise of top influencers like Li Jiaqi and Wei Ya has significantly impacted in-platform traffic, making brands’ situations more passive. In 2019, influencer-led live streaming accounted for 80% of Pechoin’s live streaming GMV. The downside of influencer broadcasting is the demand for lower discounts and high slotting fees, often taking up 30-40% of sales revenue.
- Pechoin’s Response: To address these issues, from 2020, Pechoin focused on two approaches: Communicating with niche influencers with smaller fanbases and adjusting the balance between influencer-led and self-broadcasting, emphasizing the latter.
Public to Private Domain Shift
- Matrix Account Operation: To combat the decreasing traffic problem, Pechoin operates matrix accounts on various platforms, using public domain traffic to gradually shift to a private domain model. These accounts are managed by different business departments, each with distinct business logic and goals.
- Douyin’s Role: Pechoin places high importance on Douyin for aligning with current consumer preferences for short video content and facilitating both advertising and sales conversions on the same platform. Sales on Douyin have rapidly grown over three years, especially in October, boosted by Double 11 presales.
- Consumer Demographics: Pechoin’s consumer base is becoming younger and more diverse in terms of city tiers, thanks in part to Douyin. Data shows that 60% of Pechoin’s consumers on Douyin are aged 18-30, and this demographic is continually growing.
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Conclusion: The Resilience of beauty in Market Transformations
- Brand Evolution: Brand ability to adapt to market changes has been crucial. However, there are potential risks ahead, including increased competition in marketing investments and the high cost of nurturing new brands without immediate profitability.
- Potential Opportunities: Pechoin’s future growth may hinge on continued innovation in digital and refined marketing strategies, including exploring new opportunities in video platforms.
SEO Agency China stands at the forefront of digital marketing and distribution strategies, specializing in platforms like Douyin (China’s TikTok) and Xiaohongshu (Red), which are pivotal in the Chinese beauty market. With a deep understanding of e-commerce dynamics and consumer behavior, SEO Agency China offers comprehensive services tailored to the unique needs of beauty brands. From developing engaging marketing campaigns on China’s leading social media platforms to navigating the distribution channels, SEO Agency China is the partner of choice for brands looking to tap into the burgeoning Chinese beauty market.
What the 2026 data says
China is one of the world’s largest beauty markets, and local C-beauty brands have taken the lead by moving fast on trends and social proof. Buyers find new products on Xiaohongshu and Douyin, read reviews, then buy during livestreams and on Tmall. The path from discovery to purchase is short and social. Foreign brands that still rely on classic ads fall behind. The winners build trust on RED first, then turn it into sales with live commerce.
| Lever | Why it matters | Your move |
|---|---|---|
| RED discovery | Where beauty starts | Seed honest reviews |
| KOL and KOC | Build trust fast | Use micro-voices too |
| Livestream | Closes the sale | Run regular sessions |
| Repeat | Loyalty is hard-won | Reward and re-engage |
How we grow beauty brands in China
We are a small Shanghai team, and we built our name making overseas beauty brands wanted by Chinese buyers. We build the reviews, the KOL mix and the live commerce that turn discovery into sales. See our skincare case study, then get in touch through our contact form. Friendly team, fair prices, real results. More on our Xiaohongshu service.
Sources: market data from China Briefing and Daxue Consulting.
Top market figures
The market is huge, but the share is shifting. Local brands now sell more than foreign ones, and most buyers start their search on Xiaohongshu before they ever add to cart. Foreign beauty brands have to win attention on social first, then close on livestream. Source: China Briefing.
The top solution, and a plan to use it
The single best move for a foreign beauty brand is to build real proof on Xiaohongshu, then push that proof into livestream sales. RED is where Chinese buyers decide if a product is worth trying. Reviews and demos there do the convincing. Livestream then turns that interest into orders on the same day. One feeds the other, so you run them together.
- Open a verified brand account on Xiaohongshu and post honest demos, before and after shots, and skin-type advice.
- Seed a mix of mid-size KOLs and small KOCs so reviews look real and cover many skin types and budgets.
- Run regular livestreams, weekly if you can, with a clear offer and a host who answers questions live.
- Track what sells, collect buyer contacts, and re-engage them with new drops and member-only deals.
A quick example. Say a French skincare brand called Lumiére Botanique wants to enter China. This is an invented example. In month one they post 30 RED notes with 12 KOCs showing their serum on different skin types. In month two they add two mid-size KOLs and start a weekly Friday livestream. By month three the host is selling 400 units per session, repeat buyers make up a third of orders, and their RED account passes 20,000 followers. Plausible, and it all started with proof, not paid ads.
How SEO Agency China makes it happen
We are a small Shanghai team of Chinese-native marketers, and we do this work every week for foreign beauty brands. We write the RED notes, pick the right KOLs and KOCs, run the livestreams, and keep an eye on what actually sells so your budget goes where it works. No fluff, fair prices, and results we can show you. See our Xiaohongshu service, then contact us to talk about your brand.
Three things to remember
- Proof beats ads. Chinese buyers trust reviews on Xiaohongshu more than any banner you can buy.
- Livestream closes the sale. Interest on RED turns into orders when a live host answers questions and shows the product.
- Local brands set the pace. C-beauty moves fast on trends, so you have to be just as quick and just as social.
Oliver Verot is a China marketing specialist who helps foreign brands reach Chinese consumers. Read more on Chinese Tourist Agency.