Are KOLs the key for niche beauty brands in China?

As the global beauty market expands, e-commerce has emerged as a critical driver for brand success, particularly in China's competitive landscape.

The Moojing Market Intelligence “2023 Annual Consumer New Potential White Paper” reveals that online beauty sector sales, across platforms like Taobao, Tmall, JD.com and Douyin, reached 494.51 billion RMB ($69.76 billion) in 2023, up 3.8% growth YOY. Around 60% of beauty product sales will occur online by 2027, according to McKinsey's 2023 “The State of Fashion: Beauty” report.

In this partnership feature, Jing Daily examines S'Young International's role as a leading distributor for international beauty brands in China, using the case study of Italian professional backstage makeup brand Lord & Berry to explore niche brand's market entry and cultivating a dedicated local following.

E-commerce in China

While the Taobao ecosystem remains crucial in China, Douyin has rapidly emerged as a content-driven e-commerce powerhouse, boasting 746.5 million monthly active users in 2023, comprising primarily Gen Z and millennials. Meanwhile, Xiaohongshu has excelled by tapping into its vast female user base.

Livestreaming across these platforms is reshaping e-commerce by combining entertainment with shopping. Statista reports that nearly half of the Chinese population engages with livestreams. In 2023, the value of China's livestreaming e-commerce market hit 4.92 trillion-RMB ($693.6 billion), and is projected to reach to 8.16 trillion RMB by 2026.

Successful brands are leveraging targeted Key Opinion Leader (KOL) marketing, customized for different channels, to foster consumer loyalty. KOLs, as livestream hosts and content creators, offer industry insights, personal opinions, and real-time interactions, allowing viewers to deeply understand a product and purchase it directly within the app.

Identify advantage, audience, KOL partner

The story of Milan-based Lord & Berry begins backstage at top fashion weeks, where the brand is acknowledged by creative professionals for its high-performance products. When Lord & Berry entered the Chinese market in 2019, interpreting and presenting this niche brand's exclusive concept and selective catalog were key challenges for S'Young International.

Backstage makeup is often associated with bold, colorful, and extravagant looks – not the everyday consumer's preference. But the key to the brand's runway success lies in the long-lasting quality of its products and this unique attribute provided the guidance for subsequent strategy.

Recognizing this, S'Young pin-pointed an opportunity in the Chinese market, where there's strong demand for professional-grade makeup catering to oily skin, with foundation emerging a steadily growing category. The strategy recommended emphasizing Lord & Berry's high-performance foundations, emphasizing durability – a key aspect for Chinese consumers.

Selecting KOLs who align with a brand's values and target audience is crucial. Chinese consumers, especially younger demographics, crave authenticity from trusted sources and value unique experiences. KOLs are essential in building these connections.

Lord & Berry deployed influencer marketing to attract targeted consumers and increase brand awareness. Collaborations were established with beauty experts who have oily and combination skin types, and celebrities, makeup artists and models with fashion show credentials. Lord & Berry further expanded its reach by targeting key consumer segments, using data filters to refine its audience based on age, foundation preferences, and makeup styles.

S'Young identified various potential scenarios for Lord & Berry's long-lasting foundation, from fashion to outdoor sports and music festivals. Influencers reviewed the product in diverse contexts, showcasing its uniqueness and strengthening the brand's consumer connection.

Optimize strategy, digitalize KOL management

KOL management is a numbers game, where detailed labeling and big data are invaluable for KOL customization and dynamic optimization. S'Young's proprietary KOL management system offers tailored recommendations based on campaign lifecycle and specific brand requirements.

During Lord & Berry's collaboration with KOL Hua Mei for shopping festivals, where brands anticipate a sale surge, tags such as “driving sales” and “livestreaming” effectively boosted direct sales. Simultaneously, KOLs tagged as “beauty editors” and “international supermodels” played a key role in enhancing brand awareness during fashion week campaigns.

A successful KOL management system ensures authenticity and accuracy through real collaboration data. S'Young's system tracks over 440,000 influencers with consumption data verified through past partnerships. When consumers purchase products, the system can verify that the actual consumer group aligns with the group the KOL can reach.

Integrate brand DNA and omnichannel marketing

With numerous channels to manage, maintaining brand identity across all marketing strategies is essential. While e-commerce is a driving force, a seamless omnichannel strategy is also critical. To this end, S'Young maintains partnerships with more than 6,000 offline channels, including luxury malls like SKP.

The Global Brand Festival is one of its key initiatives designed to convey brand positioning directly to channel partners. Last year's inaugural event brought together 300 influencers, channel distributors and makeup artists, including Lord & Berry CEO, Paolo Blayer.

Lord & Berry's comprehensive omnichannel strategy has provided the Italian brand with the necessary reach and appeal to capture the attention of discerning Chinese consumers. As the brand has now extended its influence into the US market, Lord & Berry is poised for even greater coverage.