With China's massive untapped market, several international companies are starting to grab whatever they can into this lucrative market with a lot of potentials. The latest to do so is French personal care company L'Oreal which recently struck a deal with Tmall, the online retail platform of Chinese tech giant Alibaba.
Last week, L'Oreal announced the launch of the company's new marketing campaign which is both online and offline. The company also confirmed that it is establishing pop-up stores and a new high-end product line from football star David Beckham. L'Oreal said that based on its market research in China, the country's male grooming market stands out to be the one with the most potential.
L'Oreal's venture into the Chinese male grooming market is a direct result of the company's partnership with Alibaba's Tmall Innovation Center. This initiative was formed in 2017 in order to help international brands explore new options, outside of conventional ones, on how to tap the Chinese market. The Tmall Innovation Center uses various precise market analysis strategies and real-time consumer insights which it rolls out to the company's customer base which is currently pegged at 600 million active users.
The Tmall Innovation Center is currently working with 62 companies, and L'Oreal is just the latest to be added to its growing portfolio. In order to further tap China's market, L'Oreal China Chief Executive Officer Stephane Rinderknech said that the company will continue to adopt innovative market strategies and deepen its partnership with local brands.
The male grooming market in China has seen unprecedented growth in recent years. Based on statistics revealed recently, this particular segment of the market has posted growth increase by as much as 50 percent in the last two years alone. This was based on the data produced by L'Oreal and Tmall Innovation Center.
According to data, 63 percent of Chinese male consumers within the 15 to 50 years old demographics have used facial skincare products that are specifically designed for men. This reveals a massive market potential for male grooming products the study concluded.
L'Oreal China has acknowledged five consumer profile groups. Each of these profile groups has their own specific preferences. One of the groups is identified as those who purchase men-only personal care products. Another one purchase a full range of grooming products, while the other three are looking only for hair, face, and basic grooming products.
As part of its deal with Tmall, L'Oreal launched a flagship retail store on the former's platform. This store features Beckham's range of high-end male grooming products called House99.
