What Chinese Never Tell You

Knowing the Market & the Consumer

Secondary data research

Launching the new skin product in Chinese market by Diademine

Overview

Diadermine wants to enter the Chinese beauty market with a new skin care products. Growing disposable incomes and rising pursuit for personal wellbeing underpins the growth in beauty and personal care industry in China overall by 10% per year that makes this industry attractive for the companies and with more money to spend, Chinese shoppers have catapulted China ahead of Japan to make it the world’s second-largest consumer goods marketplace, following the US. However, special consumer preferences and consuming habits of the Chinese people make this market widespread for the international companies.

Diadermine will target medium aged customers with medium-level income and position its products in the Masstige category (slight higher than average price). As Chinese people care a lot about brand, but at the same time they are not loyal to it and like to try different products, Diadermine needs to use aggressive below-the-line promotion of the product.

STP Strategy

Segments.

To better understand our customer needs and satisfy them we will segment the Chinese skin care market into several segments. We will do it by both geographic and income levels. According to the Bain study, China cannot be viewed as a single market, as the difference between consumer preferences in different regions is huge. So we need to target a locality or region and then move to the next one. Due to economic performance and population size, China is divided into 6 tiers from the biggest and most important (tier 1) to small provinces (tier 6). The skin care product can be produced for man, women or child. In different ages women are interested in different results from using skin care. This can be divided into 4 types according to the role: to moisturize (20-30 years), to prevent from anti-age effect (30-40), to prevent and heal from...