Chinese beauty brands woo Southeast Asian customers on TikTok and Shopee as saturated home market stagnates
- Neighbouring countries such as Indonesia and the Philippines are top choices for cosmetics brands, which point to similar consumer aesthetics and market rules
- China’s domestic consumption fell to single digits after 2017, and contracted in 2020, in a market that remains highly competitive
Over the last two years, Chinese cosmetics companies that sell online have been eyeing neighbouring markets like Japan and Southeast Asia for expansion before trying their luck in more competitive Western markets.
These companies may have an easier time finding success in Southeast Asia, where Chinese brands often have an edge because of knowledge gained from operating in China’s highly competitive market, along with their access to flexible supply chains that allow them to produce cost-effective products, according to industry insiders.
“International brands lack local consumer insights. With their relatively high prices and limited product range in Indonesia, local competitors cannot adapt to consumer needs with popular products online,” Sita Hu, vice-president of branding at Hebe Beauty, said at an industry forum in Shanghai on Friday. “That gives us an opportunity.”