“In the previous, S’Young Group was extra pushed by the twin enterprise of working self-owned manufacturers and serving to overseas manufacturers to raised distribute in China”, says Juliette Duveau, the co-founder of consulting company The Chinese Pulse. But the group based in 2018 is not content material with its function of distribution companion in China. Last 12 months, S’Young bought French manufacturers Pier Augé and EviDenS de Beauté.
“We can foresee that S’Young will combine the worldwide channels and R&D strategies of those two French manufacturers, paving the best way to the worldwide marketplace for its different self-owned manufacturers sooner or later”, she provides.
These fairness acquisitions of overseas manufacturers additionally contribute to upgrading the group’s picture, from Middle-Low finish to extra high-end. S’Young’s personal manufacturers – equivalent to Yunifang (御泥坊), which has over 10M followers on Tmall – primarily goal the Chinese mass market with a enormous buyer base, particularly in decrease tier cities. Through the acquisition of overseas manufacturers, the Group might attain extra prosperous clients in larger tier cities and would possibly develop higher-end merchandise to go international.
Sensitive skins and area of interest manufacturers
Last 12 months, S’Young additionally acquired the Chinese model Dermdoc (戴摩道克) specialised in pores and skin restore from the group Hangzhou Songyang. Analysts famous it made S’Young enter the territory of Winona (薇诺娜), Chinese group Bethany’s model positioned on delicate pores and skin therapy, which ranked within the Top 10 of nationwide manufacturers on the latest June procuring competition on a number of e-commerce platforms.
“Since 2017, the expansion price of China’s delicate skincare market has been larger than the general skincare market’s, and it has strengthened, particularly after the epidemic”, observes Juliette Duveau.
According to the 2022 Chinese Sensitive Skin Market Trend report, issued by Taobao and T-mall, round 45% of the Chinese inhabitants have a delicate pores and skin, and most of them are girls of their twenties residing in tier 2 and tier 3 cities. In this area, shoppers primarily count on merchandise centered on pores and skin barrier enhancement, pores and skin redness restore, and anti-inflammation.
S’Young additionally introduces itself because the pioneer of the “CP (Chinese Partner) mannequin”, which consists in serving to international manufacturers develop and adapt to the Chinese market, by offering a complete resolution for the model, product adaptation, gross sales, and distribution networks (on-line and offline).
This method is completely different from the “Tmall companion mannequin” provided by the Chinese platform to international manufacturers used to cross-border commerce with China. “While the Tmall companion mannequin solely focuses on the digital ecosystem of its personal group, S’Young can present diversified on-line and offline gross sales channels (procuring malls, choose outlets)”, explains Juliette Duveau. Last 12 months, the group really opened a bodily retailer referred to as Shuiyangtang (水羊堂, “the temple of S’Young”) in Changsha, to supply all its manufacturers and its companions’ on a 300-m2 space.
Given the manufacturers that belief S’Young with the CP mannequin (Kiko Milano, Fenty Beauty, Liérac…), the group has positioned itself on a quite premium area of interest phase. “Niche manufacturers maintain a comparatively small share of the market and have a comparatively low consciousness in comparison with established manufacturers. Competition on China’s magnificence market could be very fierce. But as Chinese shoppers develop into extra subtle and pursue persona expression, area of interest manufacturers with sharp model identities and values ushered of their alternatives. The continued reputation of area of interest manufacturers challenges the established or mainstream magnificence manufacturers who are likely to re-examine their model picture to raised meet the wants of the younger technology.”
Still, S’Young’s many initiatives haven’t obtained a lot reward from the Chinese monetary press, which factors on the group’s declining profitability (it’s listed on the Shenzhen Stock Exchange) and the necessity to discover development drivers on the now extremely aggressive Chinese market. “For now, the group will stay centered on the Chinese market”, says Juliette Duveau. “There continues to be a lengthy strategy to go earlier than it really goes international”.
https://www.premiumbeautynews.com/en/s-young-international-a-new,22360
S’Young International, a new Chinese cosmetic giant?
