Domestic brands make steady march overseas
Florasis, Heytea among leading names gaining offshore foothold
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Domestic brands with unique features and high-quality attributes have been accelerating their pace of going global, and the trend has shifted from low-priced competition to branding development, and increasing applications of digital technologies, industry experts said.
Hangzhou, Zhejiang province-based Huaxizi — or Florasis in English — a Chinese beauty brand with cultural attributes and aesthetic qualities, launched a series of products at a Cosme store, a Japanese cosmetics information and community portal, in Osaka earlier this year.
In August last year, it opened a store at high-end Japanese department store Isetan in Shinjuku, Tokyo, as its first seasonal limited offline store overseas.
"The Japanese cosmetics market is quite mature and shows strong demand. The high standard of the Japanese market will help Florasis to raise brand strength, and seek new breakthroughs in the international market," said Gabby Chen, president of global expansion at Florasis.
"China and Japan are geographically close and have frequent cultural communications. Florasis chose Japan as the first stop for overseas operations, as the company aims to leverage cultural resonance between the two countries," Chen said.
The brand launched its store on Amazon in Japan in 2021, and its bestselling lipstick product topped the real-time lipstick sales charts on its first day of launch, fueled by an increasing pursuit of beauty and youth among consumers.
Since last year, domestic beauty products have become increasingly popular overseas and Chinese companies have gradually established a foothold in the markets of Japan, South Korea and Southeast Asia, said industry observers.
In 2023, the total export value of Chinese cosmetics reached 26.37 billion yuan ($3.64 billion), growing 39.3 percent year-on-year, according to data from the General Administration of Customs.
"Japan and South Korea stand as two mature beauty markets with high-income consumer groups. They are suitable destinations for the export of distinctive Chinese beauty products," said a research report by Guotai Junan Securities.
Shared beauty standards among East Asian countries enable Chinese cosmetics brands to take advantage of export opportunities. Domestic cosmetics retailers should further raise their research and development capabilities and brand impact, and grab business opportunities presented by the Regional Comprehensive Economic Partnership agreement, said the Ministry of Commerce.
The RCEP agreement, which took effect on Jan 1, 2022, includes 15 Asia-Pacific countries. The trade pact is expected to reduce tariffs by up to 90 percent on goods traded among member economies over the next two decades.
Meanwhile, Florasis attended the fourth China International Consumer Products Expo in mid-April in Haikou, capital of the southern island province of Hainan, and it was the company's first participation at the expo.
"Displaying a series of products with different ethnic themes, we hope to convey the unique Chinese culture and showcase the craftsmanship spirit of Chinese quality to domestic and foreign consumers," said Zeng Min, general manager of public affairs at EastGarden Group, parent of Florasis.
Domestically, the company has been focusing on online sales through e-commerce platforms.
Late last year, Florasis launched its duty-free store in Sanya, Hainan, and it became the sole Chinese cosmetics brand to operate an independent store at the duty-free shopping mall in Sanya.