China’s largest cosmetics producing region is now selling on Pinduoduo

China’s largest cosmetics producing region is now selling on Pinduoduo

Staff Writer
Staff Writer
Pinduoduo Content Team
July 8, 2020

· Baiyun district in Guangzhou, with largest number of cosmetic manufacturers, agrees to sell a variety of beauty products on Pinduoduo

· PDD to help incubate more than 200 brands with an annual sales revenue of over 10 million yuan and 1,000 brands with an annual sales revenue of 5 million

The largest cosmetics manufacturing base in China has moved online to Pinduoduo (PDD).

The Baiyun district of Guangzhou is home to one third of China’s licensed cosmetics manufacturers — many of whom will now sell their products through a dedicated pavilion on PDD. The district signed a partnership with PDD to promote the growth of local businesses and boost domestic consumption through China’s second largest e-commerce platform with 628 million active users.

China is the second-largest cosmetic market after the U.S. in a multi-billion-dollar beauty industry.. Most consumers for beauty products belong to the post-80s and post-90s generation, according to research on the cosmetic industry in China by Goldstein Market Intelligence. This generation — about 80% of PDD’s user base — is conscious of new trends and appearances, a key reason why cosmetic brands collaborate with beauty bloggers, influencers and key opinion leaders (KOLs) to boost their sales.

Baiyun’s online cosmetics pavilion will be an official store on PDD offering a selection of well-known cosmetic brands, such as Adolf, Wetcode, Carslan and Hanhoo.

Pinduoduo executive Andre Zhu said at the signing ceremony that Pinduoduo will have a strong focus on supporting cosmetic products and brands from Baiyun throughout 2020.

More than one million people watched the live event on June 5 where Baiyun district committee members introduced the range of products the pavilion has on offer. Hundreds of beauty brands from Baiyun participated in the weekend event and livestreaming sessions were watched by 19 million people, achieving over 10 million yuan in combined sales.

Sales of cosmetic products increased 410% daily on PDD that weekend.

There are over 4,000 cosmetic businesses in Baiyun, accounting for 50% of cosmetic businesses in Guangdong province. Baiyun produces a wide range of essential cosmetics for daily use, including personal hygiene products, haircare and hair styling products, skincare products, make-up and beauty equipment.

Hamhoo Face Mask. Photo courtesy: Company website

With the Baiyun partnership, PDD will support smaller cosmetics brands by helping them with marketing, brand building and providing a platform for merchants to host promotional events. The company will also provide online training to help merchants upgrade their sales operations, help with livestreaming and refine their product quality.

PDD aims to incubate more than 200 brands with an annual sales revenue of over 10 million yuan, and 1,000 brands with an annual sales revenue of 5 million.

In 2019, cosmetic brands and merchants from Baiyun made over 3 billion yuan in sales on PDD. While popular and established brands such as Adolf, Wetcode, Carslan and Hanhoo were top sellers, emerging local brands like Bisutang and Hankey also performed well on the platform.