China eCommerce: The Pandemic Opens a Window of Opportunity for Health & Wellness Brands

March 23, 2022
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eCommerce in China: The Pandemic Opens a Window of Opportunity for Health & Wellness Brands

Many industries have suffered from the COVID-19 pandemic – but some have actually thrived during these uncertain times. In fact, one of the biggest beneficiaries of the COVID-19 crisis has been the health & wellness industry.

As the pandemic promotes health-cautious lifestyle worldwide, global and local health & wellness brands have seen a sharp increase in consumer activity. Eager buyers are thirsting for additional positive brand experiences, and well-developed cross-border e-commerce channels can be found just about anywhere. As a result, medium-sized brands have been given a unique window of opportunity to expand into new markets – including the biggest market of them all: China.

Wellness Trends in China Reveal: Foreign Brands Reign Supreme

COVID-19 has accelerated the growth of health consciousness in China on an unparalleled scale. The summary below indicates that Chinese consumers’ perception of wellness is outpacing other major consumer markets in the world.

Wellness Trends in China Reveal: Foreign Brands Reign Supreme

Even more astounding data comes from the beauty & personal care sector, which is considered a significant pillar of China’s wellness market. Today, China is considered the second-largest cosmetics market worldwide, with a net estimation of 70 billion USD, and a forecast to grow by another 14.6% by the end of 2022. In such a massive market, the competition between domestic and foreign brands is fierce. However, it seems that foreign brands still dominate most of the skincare and beauty segments, and this is most evident in premium and luxury products. This clear favoritism towards foreign premium products is best reflected in a recent analysis, which predicts that while China’s premium beauty & personal care market will grow by 117% by 2025, the mass market is expected to grow by only 24%.

eCommerce in China - An Opportunity for Health & Wellness BrandsForeign Brands Embrace Chinese eCommerce

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Foreign Brands Embrace Chinese eCommerce – and Everybody Wins

The local demand for foreign health & wellness products, especially in premium categories, is on the rise in China, probably more than anywhere else globally. And foreign brands are responding.

Since the onset of COVID-19, foreign cosmetics brands have reported a double-digit percentage increase in imported cosmetics products into China. Thanks to China’s sophisticated digital ecosystem and the highest eCommerce adoption ratio, international brands can reach every customer around the country, by selling wellness products in China’s eCommerce. With that in mind, it should not come as a surprise that China has the highest share of wellness spending online, followed by Japan, Europe, and the United States.

Against this backdrop, and as China’s borders are still restricted, cross-border e-commerce has become a popular avenue for driving sales and increasing profits in China. But in addition to the luxury of doing business in China from the comfort of your own country, selling on Chinese e-commerce platforms provides international brands with additional advantages:

  •  You do not need to obtain local product certifications or inspections
  • Shipments from your home country are done by you, while everything else is handled by the platform (for instance, Tmall Global)
  •  The only tax you need to pay is duty tax

Sell cosmetics products in China’s ecommerce

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Many health & wellness brands that wish to tap into this potential have contacted us, asking how to sell on Tmall, and it’s safe to say that they have come to the right place. In over 20 years of operating in China, we have acquired tools, experience, and a vast network that allow us to develop tailored solutions for international companies in the ever-changing landscape of doing business in China.

As a response to this need, we have set up an umbrella store of health & wellness products on a Tmall Global – China’s biggest B2C portal for international brands selling to Chinese customers. Joining this Tmall Global store is the ideal path for established medium-sized wellness brands who wish to expand into China in the quickest yet safest manner possible. This model enables you to save costs, minimize risks, enjoy transparency, and test your products’ acceptance in China with the right team.

Do you have a great product? Want to see your sales numbers go up? Contact us today for more information.

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