Recently, Lancôme launched a Qixi gift box exclusively for the Chinese market, reflecting from some part the importance Lancôme attaches to the Chinese market and expects to have a meaningful dialogue with Chinese consumers.
According to CHAILEEDO, the limited gift box contains three lipsticks, and the color scheme of the lipstick tubes echoes the name of each lipstick, which are “Intoxicating Star River”, “Moonfall Heart” and “Star Dreams in Love”. The individual lipsticks are priced at $49.2. Qixi refers to the traditional Chinese festival, which can be said to be the Chinese Valentine’s Day.
It is reported that Lancôme comes from France, founded in 1935, and is a brand of L’Oréal. In 2019, Lancôme sold $1.6 billion in China. By 2020, its annual sales grew 36.4% to $2.2 billion. By May 2021, Lancôme opened 330 directly operated offline department store counters and shopping center boutiques in 124 cities in China. It spread across 30 provinces and autonomous regions with online channels including the official website and Tmall flagship store.
Recognizing the huge potential of the Chinese market, Lancôme has made great efforts to develop its presence in China in the last two years. In May this year, Lancôme entered the Chinese e-commerce TikTok platform. This is the second brand in the L’Oréal Group after L’Oréal Paris, and Lancôme is another brand of the Group to be part of the TikTok e-commerce. In the internal division of L’Oréal Group, L’Oréal Paris and Lancôme belong to the mass consumer goods division and high-end cosmetics division respectively. This means that TikTok China e-commerce has the ability to serve the entire line of brands in the cosmetics category.
After moving in, Lancôme succeeded in one fell swoop. It gained daily sales of over 1 million yuan just in 10 days of its launch and cumulative sales of over 10 million. In the TikTok promotional campaign on May 20, the cumulative turnover reached $746 thousand. In addition, Lancôme’s active participation also reflects some extent the acceleration of the digitalization process of China’s retail industry towards internationalization. As e-commerce continues to evolve, international brands and Chinese e-commerce companies are also providing a model for other first-tier brands to develop and operate in the Chinese market.
Moreover, it can also be found that Lancôme has been following the trend of the Chinese market. Previously, Lancôme officially announced Zhou Dongyu as the brand spokesperson. In April this year, Lancôme cooperated with Zhao Jinmai, the leading actress of the hottest Chinese TV series at that time, as its skincare ambassador. Recently, it also signed up celebrities such as Xue Kaiqi and Wu Mochou, who gained high attention for their participation in the popular Chinese variety show to promote its lipstick. From these moves, Lancôme has been committed to communicating deeply with the young consumers who are following the trends of today.
In the Chinese market, Lancôme’s performance is shining. According to the 2022 Tmall 618 report, Lancôme is Top 3 in the top 20 list of 618 beauty store sales. In the list of skincare kit brands, Lancôme won the top. And, its parent company L’Oreal broke all records and captured more market share during the 2021 Tmall Chinese Double 11 Shopping Festival. This shows that its brand is very attractive to Chinese consumers. The iconic consumer campaign has established L’Oréal Paris and Lancôme as number one and number three in the beauty market.
The L’Oréal Group is confident in the Chinese market describing it as “still successful” at the recent Consumer Goods Forum’s Global Summit conference at Deutsche Bank. In the first quarter of 2022, the L’Oréal Group grew by 13% year-on-year in China market. As of May 22, the Group’s online sales in China (including Tmall, JD and TikTok platforms) grew by 30%, well above the market average (+5%). The Group forecasts that the China market will maintain its high single-digit growth target as the tough situation caused by COVID-19 improves and urban stores reopen.
It seems that Lancôme’s Tanabata gift box, launched specifically for the Chinese market, is able to gain a good reputation while attracting eye-catching and stunning crowds. Compared with other online marketing, this move is more meaningful to further the brand image and in-depth user service established by the brand for Chinese consumers