Thanks to the power of social media, millennials now contribute 35 percent to 40 percent of Estée Lauder’s sales in China—a larger proportion of sales than millennials account for on average globally, according to an article on Bloomberg News.
Influenced by makeup tips and recommendations of popular lifestyle bloggers, women are splurging on prestige products, with a Tom Ford lipstick, 585 yuan ($86), and La Mer’s Illuminating Powder, 1,350 yuan ($198.39), among the top products purchased. This demand has helped drive a 20 percent increase in EstéeLauder’s sales in China for its first quarter, making it the group’s fastest-growing cosmetics market.
“In the past, Chinese women didn’t put on foundation, mascara, and eye shadow,” said Fabrice Weber, Estée Lauder’s Asia-Pacific president, in the Bloomberg article. “Today, it’s perfectly OK. Millennials are completely uninhibited to think ‘I need to look stunning.’”
Compared to their peers in Japan and the US, Chinese millennials have lower brand loyalty and are more easily influenced by beauty bloggers, the article continues.
“International cosmetics brands are rushing to China now, fighting fiercely for the market, especially the young customers,” said Catherine Lim, a retail analyst with Bloomberg Intelligence in Singapore.