Thursday 10 April 2008

An Inside Look at China's Most Beautiful Industry

BeautiControl Cosmetics
from CBN News

Most people are probably not very aware of the subtleties involved in the marketing of their favorite make-up or cosmetics cream. But many women don't just buy a tube of lipstick or mascara; they're buying a feeling of confidence that they can get after finding "just what they need" that will make them look and feel more beautiful.

Tiffany Ding understands the way that creating the right atmosphere for cosmetics can make all the difference. When she studied at Cornell and the London School of Economics, she noticed a huge gap between cosmetics stores in the U.S. and Europe versus those in China.

She said that stores like Harrod's and Selfridge's in London were, "a really, really good shopping environment, nice music. You can stay in this shop for one day, and you don't feel that it's enough." In contrast, she says Chinese stores at the time, "just give you the products, and no more service, and no more envionment. I thought, why? I thought I should change a little bit. When I came back, I found out cosmetics companies in China really need these kinds of change."

In order to change the cosmetics shopping atmosphere, Ms. Ding launched her own company, RetailLook, where she serves as a liasion between American and European luxury designers and Chinese department stores. She designs and builds cosmetics displays for brands like Chanel, Clinique, Estee Lauder, and many others in a way that allows these brands to showcase their products in a way that's visually appealing to Chinese culture.

In just three years, Ding's company has grown 150 percent, and she's launching her own factory soon. She expects to grow her business alongside China's booming cosmetics industry, and plans to produce about 60 percent of cosmetics displays in China's department stores in her factory.

She's been impressed by the huge change of China's cosmetics industry over the past few years, and looks forward to growing alongside it. Today, she has seen a drastic change in China's cosmetic sector, and says "in the U.S., the department store environment is not as good as China now. In terms of the store and visual merchandising China is much, much better than the U.S."

It's also much more expensive than the U.S. Many luxury brands cost more in China than the U.S., even though they're often selling the same products. Some women can save for three or four years to buy even one new product. In the 1990s, China's beauty industry had an average growth rate of over 40 percent each year, and even though things have slowed down, most analysts expect China's cosmetics industry growth to exceed that of China's overall economic growth.

The emphasis on beauty and appearance reflects a completely different China than that of 40 years ago, when androgynous Mao suits were the only fashion option available.

Today, many women, old and young, are eager to try the latest, most fashionable beauty products. Ding says that some women will even pay for upcoming creams before they're in stock, just so they can have the most up-to-date look. For many women worldwide, the beauty marketing doesn't just represent an artificial perception, but goes deeper.

"Cosmetics companies deliver the message, don't just look beautiful, but do more," says Ding. While most people don't really think that a new lipstick or the right shade of eyeshadow can change your life, if people feel great about their appearance, that confidence can spill over into other areas of their life.

There can definitely be a beauty trap, with harmful plastic surgeries or low self-esteem. Generally speaking, most women don't feel better about themselves or their apperances after reading the latest fashion magazine or comparing themselves to unrealistic supermodels.

On the other hand, Ding's business is a clear example of how viewing a strategic niche in China's markets can produce gorgeous results.

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