Our just released Digital IQ Index: Personal Care China report finds the $41 billion Chinese personal care market one of challenge and opportunity. After enjoying mid-double digit industry growth over the past decade, brands are now faced with slowed growth and the plight of how to continue expansion in a market that requires highly local marketing and offers weak IP protection.
A few have decided to abandon it altogether. L’Oréal’s Garnier brand and Revlon recently announced they are exiting the marketing due to cost and positioning challenges. A robust digital strategy can give those who decide to stay a leg up, as local Personal Care brands registered the lowest average Digital IQs for native brands in any L2 Digital IQ Index to date. Personal care e-commerce has increased tenfold in the past five years, and certain segments such as diapers receive 25% of sales from e-commerce.
Partnering with global and local e-tailers, introducing delivery tracking and one hour windows are a few ways Index brands are competing for a share of e-commerce. Presence on mobile social platforms are becoming key as they influence online and offline sales. However, brands’ digital presence is lagging. Broken links to expired content on brand sites led to an average bounce rate of 53%. Just half Index brand sites appeared as the first organic result on Baidu. And while 92% maintain a presence of Weibo, less half are present on WeChat.
To download an excerpt of the report that assesses the digital performance of 73 global and local brands across key personal care categories click here.
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