After attracting $863 million in investment from Chinese tech giants Tencent and JD.com last month, discount e-tailer VIP.com is gaining both e-commerce market share and attention from international brands.
The rising e-commerce star sells 84% of beauty brands tracked by L2, as well as a long tail of local labels that fire up competition for visibility on the platform. Over half of first-page listings on beauty subcategory pages are for brands not tracked by L2, according to L2’s China E-Tailers: Beyond the Big Two report. The tracked brands with the most significant share of shelf across subcategories are Carslan and Maybelline, while the remainder have a limited presence on the first-page grids. For multiple categories including lipstick and makeup sets, these two brands have more combined first-page share of shelf than the rest of L2’s Index brands combined. Carslan leads the eyebrow pencil category with 16.4% of first-page listings, while Maybelline has 12.6% of listings under makeup sets.
As VIP.com’s importance in the market increases, international brands including K-Beauty giant Innisfree, Avène, and LVMH’s Benefit have publicized official partnerships with the platform. It has benefited from their official promotions, such as a VIP.com launch party held by Benefit and livestreamed online in December.
Brands will be closely following the developments in the platform’s new links with Tencent and JD.com. WeChat owner Tencent now has a 7% stake in the e-tailer, and agreed to cooperate on access to audiences, marketing solutions, and payment support, while JD.com now owns 5.5%.