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A promotional campaign for Sephora’s China Red collection. French luxury cosmetic brands need constantly to innovate to satisfy Chinese consumers.

Why French luxury cosmetics need a compelling brand story in China, and non-stop innovation, to feed demand for novelty

  • The challenge for brands such as L’Oréal, Sephora and L’Occitane is ‘to transform ourselves, at the same time as preserving our French DNA’, a consultant says
  • Sephora’s China Red is an example of a new phenomenon – a niche range inspired by and created in China not only for Chinese, but also European consumers
Beauty
Chinese consumers are buying luxury French beauty products like never before. But it’s not all about irresistible French allure – the demand for non-stop innovation is a game-changer for the likes of L’Oreal, and LVMH-owned Sephora and Guerlain, who must constantly reinvent and create niche products for the Chinese.

A perfect example is the China Red cosmetic range from the Sephora collection, first presented at Luxe Pack Shanghai in April.

Nina Zhong, director of Sephora Collection Asia, says the intense, cherry-red packaged lipsticks, blushes and eye shadows “reinterpret elements of traditional Chinese culture in a modern cosmetic collection”.

“China Red is halfway between East and West, and between tradition and modernity,” says Zhong. “It has been created to resonate with Generation Z Chinese consumers, and marks our determination to be a creative, innovative and high-end brand.”

Items from the Sephora China Red collection.

The importance of being all those things in the China market is great, she adds. “The market is dynamic, but consumers are increasingly demanding. China Red is for us a strategy to connect more with young consumers, and we are the first international beauty brand to reinterpret Chinese cultural heritage in this way.”

Perhaps not. As L’Oreal said in a recent statement, China “the land of beauty” is “offering L’Oréal the opportunity to reinvent its brands”.

“Lancôme, like all the L’Oréal Luxe brands distributed in the country, offers products tailored to the specific desires of the Chinese – avid lovers of luxury but also very demanding,” the statement said. Even the look of L’Oreal on its global website often has an Asian face.

The Sephora shop in Shanghai, China. Photo: Imaginechina

It is sometimes difficult to keep pace with the demand for newness in China, says Emma Chateauneuf, Shanghai-based project and partnership manager at centdegrés, a global design agency and partner for Sephora China.

“China is very competitive but also very hard to please, both in terms of the brands people want and the need to constantly give new choices, almost every day, to shoppers,” Chateauneuf says. “Of course, you can’t literally have a new beauty cream every day, but you have to create so much content around the product so there’s always something novel.”

China Red seeks to be just that. “People want something so special and personal, but at the same time it must be a trend … you want to share your lovers with others, so brands must create this emotional bond.”

The China Red collection from Sephora.

Nobody, she concedes, has yet fully worked out this paradox. “French cosmetic brands, especially luxury but also middle range, must have a strong brand narrative to share,” Chateauneuf says. “I think the Chinese are much more aware of brand vision, and love that French brands are putting so much effort into sharing their stories, taking Chinese culture on board, then rewriting new stories together. They almost share their story more with Chinese consumers than in France.”

Another example of this, says Matthieu Rochette-Schneider, general manager for centdegrés in China, is Serge Lutens.

“The super niche brand of the Shiseido group is the best example for us of new luxury in China. For Chinese connoisseur shoppers, niche is the new luxury,” Rochette-Schneider says. “Serge Lutens has carved out a successful niche by creating exclusivity and refined in-store experiences for its Chinese shoppers – the latest being its K11 Musea concept store [in Shanghai] we designed. Its commitment and vision is a real tribute to China.”

What Sephora did is have a French-Chinese team, with Chinese DNA, creating in China for the Chinese
Matthieu Rochette-Schneider, general manager for centdegrés in China

Skincare sales in China rose more than 10 per cent year on year in 2017 and cosmetics sales 21 per cent, according to Zhong. There’s clearly plenty of room for China-savvy branding by French beauty industry pioneers, she says.

“Chinese consumers are proud of their origins and at the same time eager for novelty,” Zhong says. Sephora’s Marvel collection and China Red reflect this, she says.

For Rochette-Schneider Chinese customers still adore French cosmetics, and China is now the number one market for several of France’s luxury players. “The Chinese market is also very fast, and for us increasing by 30 per cent a year. We have to be able to transform ourselves, at the same time as preserving our French DNA – because it is this that the consumers are after.”

Thanks to in-tune China branding for the likes of Creme Simon, Sephora, Givenchy and L’Occitane, the Chinese market now accounts for about 40 per cent of centdegrés customers.

A Chinese ad for L’Oreal Revitalift Ampoule.
On the other hand, with the rise of C-beauty and competition from other Asian countries, run-of-the-mill French beauty products have lost out, according to Shanghai marketing research firm Daxue Consulting.

According to the firm, Chinese consumers do not want to pay premium prices for a Western brand unless it is truly superior. As such, they love brands which integrate elements of a distinctive French lifestyle, as well as innovation, says Yuwan Hu, a project manager with the agency.

“Take the case of Filorga, a brand that specialises in advanced solutions for anti-ageing, especially for eye care. Launched here in 2015, its sales are snowballing – jumping by nearly 150 per cent in 2018, and a further 106 per cent in Q1 2019,” Hu says.

“Its ‘skin booster’, which is one of the most popular medical cosmetology products in China, has 30,000 shopping notes on the Xiaohongshu – Little Red Book app.”

The success of L’Oréal’s Revitalift Filler range, says Hu, shows the demand for hi-tech, high-quality natural products (this is also behind the success of L’Occitane in China).

Fragrances from Serge Lutens. The Shiseido sub-brand has carved out a successful niche by creating exclusivity and refined in-store experiences for its Chinese shoppers.
“One popular product, the Revitalift eyes cream ampoule, has been selling over 35,000 per month. The main selling points are high concentration of hyaluronic acid, groundbreaking treatment, individual packaging and zero additives – no alcohol, colour, pigment, fragrances, and also suitable for sensitive skin,” says Hu.

And this Chinese revolution does not stop here. “Chinese attractiveness for us is no longer just about working and creating for the Chinese market. China is also a source of inspiration … so it’s about creating for the rest of the world from China,” says Rochette-Schneider.

Products from French brand Filorga. Its sales in China rose by nearly 150 per cent in 2018.

China Red is a perfect illustration of that; unlike past collections, the range has been created with European, not just Chinese consumers, in mind.

“What Sephora did is have a French-Chinese team, with Chinese DNA, creating in China for the Chinese,” says Rochette-Schneider. “That’s been so successful, now this ‘Made in China’ range will go abroad and be the best ambassador for C-beauty, as stores in Europe, London, New York embrace China beauty.

“They are the first to say we are from China, we are proud of it. This is the best message a French brand can send to China, because before ‘Made in China’ had a cheaper image, especially for beauty.”

That said, he admits, the quintessential Frenchness must remain.

A Sephora shop in Shanghai.

“We do not forget we’re French, and we bring all the French savoir faire, the LVMH quality and luxury background; but we want to mix everything in – and make a truly novel fusion collection that crosses East-West cultures.”

This article appeared in the South China Morning Post print edition as: Chinese consumers are keeping French brands on their toes
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