About Chinese beauty market

Based on NBS’s announcement 2015, compared to 2013, total retail sales of beauty products in China in 2014 got a increase of 12.3% to RMB 182.5 billion. Even the Chinese beauty retail market retained double-digit growth higher than the 7.4% growth of GDP, the growth rate of beauty market has slowed down greatly, as the growth rate was 21.3% in 2013- 2014

However, Mintel report prospects for 2019 are still promising, with value sales expected to grow to RMB318 billion in 2019. This growth is mainly supported by rising income levels.

In February 2015, the China Internet Network Information Center (CNNIC) released the 35th Statistical Report on Internet Development in China (hereafter referred to as ‘the Report’). The Report shows that as of December 2014, China had an internet user base of 649 million and an internet penetration rate of 47.9%.

Specifically, China had 557 million mobile internet users, an increase of 56.72 million since the end of 2013, and the percentage of those using mobile phones to go online jumped from 81% in 2013 to 85.8%. The use of mobile instant message apps has grown steadily, attracting 91.2% of mobile internet users. Mintel research has found that 43% of consumers are interested in trying a mobile app that can recommend beauty products based on their needs (eg skin condition, age, occupation).

In addition, the current premier of China Li keqiang has introduced a new “Internet Plus” policy for China it will integrate mobil internet, cloud computing big data and the internet of things with modern manufacturing. This policy will encourage a healthy development of e-commerce and help Interent-based companies to increased the online market.

To this project, it will be more focused on online marketing. Through a new concept App and online shop such as a new service provide by Avenue Imperial will get a better promotion result. However I’m very confusing that if it will damage brand identity as the UPS is pure and organic Chinese herb.