How Beauty Industry is Growing on Douyin TikTok e-commerce in China in 2022

TikTok, also known as Douyin in China, has become one of the fastest-growing social media platforms globally, and it has also made significant inroads in the e-commerce industry. In recent years, the beauty industry has emerged as a prominent sector for TikTok China's e-commerce. According to iiMedia Research, the beauty industry in TikTok China was worth 50 billion yuan ($7.8 billion) in 2022 and is expected to grow to 100 billion yuan ($15.6 billion) in 2023.

This report analyzes the current state of the beauty industry on TikTok China and provides insights into trends and strategies that brands can use to succeed on the platform.

Market Overview:

TikTok China has about 6-700 million daily active users (DAU), and the beauty market is one of the top categories for e-commerce sales. The platform's young, fashion-conscious user base has shown a high interest in beauty products, making it an attractive platform for beauty brands. In 2023, the beauty industry in TikTok China is expected to continue its growth trajectory, driven by several key trends.

Trends Driving the Beauty Industry on TikTok China:

User-generated content (UGC):

TikTok China's algorithm heavily favors UGC, which has become a critical component of brand marketing. Beauty brands are using UGC to showcase their products' effectiveness and create buzz around new launches. UGC also provides a more authentic and relatable way for brands to connect with their audience.

Influencer marketing:

Influencers have played a significant role in promoting beauty products on Douyin. Beauty brands in China spent 11.9 billion yuan ($1.8 billion) on influencer marketing in 2021, with Douyin being one of the top platforms for influencer collaborations. Brands are collaborating with influencers to reach their followers and generate product awareness. Douyin has made it easier for brands to work with influencers, with features like brand partnership centers and the ability to track influencer performance.

Live-streaming:

Live-streaming has become a popular way for beauty brands to showcase their products and connect with their audience. According to iiMedia Research, the number of live-streaming sessions on TikTok grew by 265% year-over-year in 2021. Beauty brands are among the top industries using TikTok China's live-streaming features. TikTok China's live-streaming features allow brands to engage with viewers in real-time, answer questions, and offer exclusive deals. Livestreaming has proven to be an effective way for brands to drive sales and build brand loyalty.

Personalization:

TikTok China's recommendation algorithm has become more sophisticated, providing users with personalized content based on their browsing behavior. Beauty brands are using this to their advantage by tailoring their content to individual users. This approach has proven to be effective in driving engagement and sales.

Strategies for Success on TikTok China:

Develop a UGC strategy:

Beauty brands should encourage their customers to create UGC and share it on TikTok China. Brands can provide incentives for customers to create UGC, such as offering discounts or featuring them on their official accounts.

Collaborate with influencers:

Influencers are a powerful tool for promoting beauty products on TikTok China. Brands should collaborate with influencers that align with their brand values and have a strong following on the platform.

Leverage live-streaming:

Live-streaming is an effective way for beauty brands to engage with their audience and showcase their products. Brands should create a regular live-streaming schedule and promote it on their official account.

Personalize content:

According to a report by WARC, personalized content can increase engagement by up to 171%. TikTok China's recommendation algorithm has been shown to be effective in driving engagement and sales, with the platform's personalized recommendations leading to a 27% increase in ad click-through rates. Beauty brands should use TikTok China's recommendation algorithm to personalize their content for individual users. Brands can create different versions of their content to target specific user segments.

In Conclusion:

The beauty industry in TikTok China is expected to continue its growth trajectory in 2023, driven by UGC, influencer marketing, live-streaming, and personalization. Beauty brands that develop a comprehensive TikTok China strategy that leverages these trends will have a significant advantage on the platform. TikTok China offers a unique opportunity for beauty brands to connect with a young, fashion-conscious audience and drive e-commerce sales.

If you wish to know more about the live-streaming e-commerce analysis and tactics in China, please contact RougeLink for more information.

RougeLink offers e-commerce solutions, with integrated capabilities encompassing all aspects of the e-commerce value chain covering e-store operations, digital marketing, customer services, and logistics.

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