Home » As Beauty Brands Shutter Stores In China, Can The Metaverse Offer A Second Chance?

As Beauty Brands Shutter Stores In China, Can The Metaverse Offer A Second Chance?

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Enter the town of rhythm, Maybelline’s metaverse debut at Tmall. Launched ahead of Alibaba’s Double 11 festival, the limited-time virtual universe consists of his four spaces showcasing his four signature products from the cosmetics label owned by L’Oréal. In this immersive environment, users can try on makeup, receive beauty tips from a virtual livestreamer, play games, and enjoy the music of her spokesmodel K-pop group ITZY. .

The move marks another step in the brand’s digital transformation. In July, the New York-based cosmetics company confirmed it would shut down. 14 independent physical stores nationwide, citing the need to “Adapting to changing market and consumer demand” products will continue to be sold through multi-brand drugstores such as Watsons and online flagship stores such as Tmall and JD.com.

Maybelline debuted City of Rhythm on Tmall to celebrate Double 11.Photo: Maybelline

Lutina Gu, project manager at Daxue Consulting, said: “For brands like Maybelline that focus on affordable consumption, prioritizing digital marketing means opening up more brick-and-mortar stores to attract young technology-based consumers and consumers in many stagnating markets. It could be a better choice than

Maybelline isn’t the only brand to close brick-and-mortar counters in China. K-beauty brand Innisfree plans to scale back its store network. 80 percent On the other hand, Etude House and Hera is completely withdrawing from the marketFashion houses also began to pull out: Earlier this year, the Danish label All 1,300 selected shutdowns Fast fashion giant H&M has sneaked into its three-story flagship store in Shanghai, and Gap has closed. 10 or more stores — then it was announced Greater China business sold to e-commerce solutions provider Baozun.

Affordable beauty brands in particular face many challenges in the market, from the disruption caused by the pandemic to the rise of domestic competitors.In fact, ranking Top Selling Makeup Brands on Tmall At this year’s 618 Festival, three national names – Florasis, Colorkey and Perfect Diary – ranked in the top five (Maybelline ranked 15th).Maybelline’s market share in China is up from 10.7% in 2018, according to research firm Qianzhan 4.8 percent 2021 years.

“New Chinese beauty brands are often affordable, [their] The overall design and quality have received positive reviews,” commented Humphrey Ho, managing director of digital marketing agency Hylink USA. “Maybelline has always been a value player, but that doesn’t work in China. There are no ‘drugstore brands’ in China. ”

But instead of getting out of there China’s $81 billion skincare and beauty marketMaybelline’s foray into the Metaverse provides an opportunity to reintroduce younger consumers. Tmall luxury buildingsales of luxury goods with 3D and AR capabilities will see double-digit year-on-year growth in 2022, with consumers spending twice as much time looking at these products. By showcasing its signature products, legacy players can revive their brand image and learn more about their target audience.

Maybelline’s virtual world highlighted key products such as the Hypersharp Laser Liquid Pen Eyeliner.Photo: Maybelline

“The Metaverse is an opportunity for discovery and relationship for both brands and consumers,” Ho continued. “Brands gain more insight into what features they are specifically considering in their products that offer an opportunity to establish or reaffirm consumer loyalty.”

Other beauty brands are similarly incorporating Web3 into their China-focused digital strategies. Owned by Shiseido in April nars cosmetics Creates a limited-time virtual world exclusive to China Duty Free Hainan, allowing Chinese customers to customize their avatar, try on new products and hairstyles, and earn virtual currency to redeem gifts on purchases I made it Meanwhile, Laniege and MAC have collaborated with Chinese virtual influencers Chuan and Ayayi, respectively, to promote makeup using ultra-realistic faces.

In the limited-time “Nonstop Nurses Virtual World,” you could try out new makeup products with your avatar. Photo: Drum

That said, the metaverse “plays a more obvious role in marketing and reaching potential users than in actual customer order conversions,” Gu said. But as more global names pile up in the space, “doing the metaverse could go from a nice-to-have to a must-have.”

That said, the American brand best known for its iconic mascara needs more than flashy marketing tactics to grow sales and regain market share. Ho summarizes: What Maybelline has to do is return to China with a brand clearly positioned as a premium brand worthy of European prices, leaving the drugstore distribution channel and offering true product superiority. ”

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