Digital technology serving the conquest of the Chinese market

Shopping at Kiehl’s

L’Oréal Group acquired the Kiehl’s brand in 2000. © L'Oréal

Shopping at Kiehl’s

L’Oréal Group acquired the Kiehl’s brand in 2000. © L'Oréal

Spearheading the development of the L’Oréal Group’s Luxe division, e-commerce plays an essential role in product distribution in China. With a rapidly growing rate of connection, over two-thirds of Chinese Web users go online from their mobile phones1. L’Oréal shares this growth with 228 million online customers in 2012, making the Group a leader in online sales of luxury products. It holds this strategic position in a market that combines luxury and e-commerce much more naturally than the historical brick-and-mortar markets.

Today, an increasing numbers of Chinese consumers prefer buying cosmetics online: 18% of them according to the Ipsos institute. Among the arguments in favour of e-commerce is the possibility of discovering the brand’s entire world and latest news, which 61% of the surveyed consumers regularly enjoy. New consumption trends are developing rapidly, especially due to generalised use of social media. This trend should continue, since 76% of Chinese consumers consider that social media is a legitimate space for luxury brands.

L’Oréal Luxe is well-positioned, a pioneer, in this digital explosion in China. Its brands have deployed engaging marketing strategies that have won them leadership on social networks. A symbol of this success is the Rose Beauty website by Lancôme community launched in 2006, which is now the leading community dedicated to luxury beauty in China.

1 Source: China Internet Watch

Did you know?

 

1/ While Chinese consumers regularly visit official brand Web sites, 19% of them also state that they consult blogs dedicated to luxury (KPMG study, 2011). This makes them precious influence and awareness tools for the L’Oréal Luxe brands.

2/ The leading luxury brand in China (retailer feedback), Lancôme entered 18 new cities in 2012, bringing the total number of cities where it is available to over 70.

3/ In China, L’Oréal Luxe brand awareness was first built at the department store counters in Shanghai, Beijing, Hangzhou and Guangzhou, as well as Hong Kong. It now extends to expanding mid-sized cities like Ningbo and Kunming.