What happened: Gross merchandise value (GMV) of Douyin’s beauty division exceeded $15.4 billion It was an annual increase of 43.5% (113 billion RMB) in the first three quarters of this year. This means that the business’s sales exceeded $13.6 billion (RMB100 billion) for the first time in just three quarters.
Brands on Douyin are also breaking records. Take domestic skincare brand Kans (韩束) for example; Feigua Data shows that GMV on Douyin reached $232 million (RMB 1.7 billion) in the first three quarters. Kans’ GMV’s one-month sales on Douyin alone were approximately one-twelfth of Han Shu’s annual performance target in 2022.
Considering the upcoming Singles’ Day (11/11) shopping bonanza, analysts predict GMV will exceed $273 million (RMB 2 billion) by the end of this year.
JingTake: Dai An Di and Joyruoo brands were included in Feigua Data’s monthly Douyin top 10 selling beauty brands list. There is also no official presence on Chinese social platforms such as Weibo and Xiaohongshu, where brands generally operate official accounts and post official statements. They rely entirely on Douyin to generate traffic for their livestream sessions.
The two brands are reportedly Original Equipment Manufacturers, or OEMs, meaning they do not have their own research labs or manufacturing companies and rely on third-party formulas and manufacturing capabilities, merely rebranding the final product for sale. .
This shows how powerful Douyin is in influencing consumers’ opinion and decision-making process. It lowers the barrier to entry and provides a shortcut for emerging brands, especially Chinese ones who know how to leverage the short video app to generate interest.
But success is also a trap for the platform; because consumers will become increasingly skeptical about purchasing new labels through the platform. Many brands, such as Dai An Di, invest heavily in Douyin promotions and campaigns but do not develop skin care formulas that will retain consumers in the long term.
Local brands benefit from the advantage of local grass. In addition to Kans, local beauty device brand Jmoon and local skin care brand Proya also ranked third and fourth in the top five, respectively.
Paris-based L’Oréal, which ranked high in Feigua’s top 10 list several times in the first half of the year, did not perform very well in the 3rd quarter of 2023. It fell to seventh place in July. Meanwhile, luxury skin care brand Helena Rubenstein, which ranked first on the June list, fell to 14th place in July.
July was low season for beauty companies as they prepared for Chinese Valentine’s Day, known as the Qixi festival, in August.
A growing number of new and established brands are expected to invest on Douyin for this year’s Singles’ Day shopping festival, given the interest-based e-commerce platform’s ability to highlight new labels and drive sales.