On November 11th last year (local time) at midnight, Alibaba Group surpassed 10 billion yuan in sales within 6 minutes and 58 seconds during the Singles' Day event. This is a new record, about 5 minutes faster than the previous year. [Photo by Alibaba Group]
[Asia Economy Reporter Yujin Cho] Domestic cosmetics companies are entering a special sales period by launching influencer marketing campaigns to coincide with China's largest online shopping festival in the first half of the year, the '6.18 JD Day.' They are focusing their efforts, seeing it as a turning point for the recovery of Chinese demand, which was disrupted by the novel coronavirus disease (COVID-19).
According to industry sources on the 3rd, major domestic cosmetics companies are preparing to participate in the 6.18 event, the largest online shopping festival in China’s first half of the year, led by JD.com, the country’s second-largest e-commerce company. Companies confirmed to participate include Amorepacific, LG Household & Health Care, Aekyung Industrial, Shinsegae International, and Able C&C. They plan to target Chinese consumers who open their wallets during the biggest shopping festival with various discount promotions and influencer marketing campaigns.
Amorepacific plans to sell 9 to 10 brands such as Sulwhasoo, Mamonde, and Etude on JD.com and Tmall, while LG Household & Health Care will participate in the JD.com event focusing on major brands like Whoo, Su:m37, and O Hui. Riding the trend of a 17% year-on-year growth in online channel sales in China during the first quarter amid COVID-19, Amorepacific expects the 6.18 event to be a catalyst for recovering sales in China. Able C&C, which recorded sales of 3.1 billion KRW through participation in last year’s 6.18 event, is also preparing to participate this year.
Aekyung Industrial plans to introduce new products such as Premier and concealers, in addition to the popular Age 20’s Essence Cover Pact in China, and will also sell sun care products suitable for the summer season. They plan to fully participate throughout the sales period, from the pre-order sales that started on the 25th of last month until the 20th of this month. A representative from Aekyung Industrial said, "To reach Chinese consumers who have not been able to experience K-beauty for a while due to COVID-19, we plan to showcase brands such as Age 20’s, Luna, A-Solution, and Snicky for men in line with the 6.18 event, and we expect good results."
Shinsegae International is participating in the 6.18 event for the first time this year through its Yeonjak and Vidi Vici brands. They plan to sell special price sets and bestseller sets for each brand on JD.com, Tmall, and Xiaohongshu. A Shinsegae International official said, "We will also conduct China-customized marketing such as live broadcasts using local Chinese influencers along with gift promotions and time-limited special offers," adding, "In the case of Yeonjak, sales expansion will be pursued through live broadcasts hosted by Gou Tianer, a famous influencer with the highest cumulative sales on Xiaohongshu."
The 6.18 JD Day is the first large-scale shopping event held in China since the COVID-19 outbreak. The event runs for about a month, from the pre-order sales that started on the 25th of last month through to the official sales day on the 18th, which is JD.com’s anniversary, and continues until the 20th. An industry insider said, "It is one of the largest online shopping events in China following Alibaba’s 'Singles’ Day,' and it is the period when the highest sales are concentrated in the first half of the year," adding, "Since it did not benefit from the surge in sales on International Women’s Day on March 8 and due to the prolonged COVID-19 situation, there is great anticipation for so-called revenge consumption, where pent-up consumer demand is expected to explode all at once."
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