FaB’s first China event explores new luxury’s appeal to tech-savvy consumers
On September 4, the FaB (Fashion and BeautyTech) Community held the first meetup of FaB China — one of the community’s global chapters — in Shanghai. In China’s enormous market, data-driven startups spring up like mushrooms, so we’re curious to understand more about the scene. We report on the event’s panel discussion, which also featured FaB Community founder Odile Roujol.
In China, desires and standards of living vary significantly among different consumer groups. Despite these differences, marketing that gives purchasing power to consumers wins over the millennial generation and proposes “new luxury” to consumers is indispensable to China’s beauty and fashion industries.
That’s according to Roujol, who shared these insights at a meet-the-press session before the FaB China event. She had chosen Shanghai as a FaB community base because she is still amazed at the skyrocketing revenues of beauty products in China over the past five years. Roujol has a long experience in the beauty industry and is a former CEO of French luxury beauty brand Lancôme.
The time has also come to examine who the main consumers of today are, said William Lau, a beauty and fashion marketing and investment opinion leader in China and the event’s host. He noted that the industry in China had grown by observing Western marketing methods but had now matured, particularly for luxury brands.
What consumers want in a WeChat world
With the ubiquity of the Chinese super-app WeChat, more thought should also be given to the use of influencers, known as Key Opinion Leaders or KOLs in China, said Roujol. These influencers can bring unique and captivating ideas — such as new luxury and its focus on authentic experiences — to mainstream consumers who use WeChat in every sphere of their lives.
She also said that even as widespread technologies such as WeChat and Alipay lead to more efficient data gathering and digital payments in China, problems persist such as the almost instantaneous spread of rumors. Roujol added that while strolling through the city’s fashionable French Concession area, she observed the thoughtfulness and awareness Shanghai women have towards beauty and health. She believes Shanghai is an international city on a par with the likes of New York and Paris.
Another event speaker, Spain-born Monica Muriel Zurita, founder and CEO of the fashion brand Zurita , said that a more sophisticated consumer base is on the rise in China. She pointed to athletic apparel brand Lululemon, which strives to offer customers healthier and more beautiful ways of living by incorporating yoga elements into its products. Despite soaring costs of materials, this approach has allowed Lululemon to perform better. Chinese people are finished with being brand devotees, she said, and now desire to raise the quality of their lives. She added that the buzzwords in China are those such as “organic” and “natural”.
Ideas that breathe new life into society
The changing consumer awareness in China was also made apparent by a speaker at the event — full-time Key Opinion Leader Ryan Mao. As a beauty blogger, Mao has made over 90 videos that focus on men’s skincare and cosmetics. Although men’s makeup is growing more popular in China, especially among millennials, mainstream views still consider cosmetics to be for women only. On his blog, Mao offers honest reviews about new and emerging men’s beauty brands. He seeks to give more awareness to brands that try to disrupt these conventional ideas.
In recent years, more Key Opinion Leaders are creating their own beauty brands. Mao is no exception; he has a foundation in the works with the concept of “beauty for everyone”. He wants to inspire more people to try gender-neutral brands, as caring for your appearance is only natural regardless of gender.
The role of local investors
With rising staff costs, beauty companies are turning to Key Opinion Leaders like Mao who can operate on multiple levels, according to Cathay Capital partner Nicolas Du Cray, who also spoke at the event. Besides offering value to sales and marketing, these KOLs also provide access to data, so it’s essential to match them with the correct product or service.
Du Cray, who has been involved in numerous businesses in China for many years, also said that startups in the country are critical drivers of the economy and are now expanding and developing rapidly. He expects more business-to-business opportunities in China to come as business-to-consumer digital services accelerate along with the spread of devices such as smartphones.
Another investor who spoke at the event was Managing Partner for Eminence Ventures Peter Cheng, the former GM for Tencent’s Advertising Platform & Products Division. Likening the act of marketing to producing a movie, he said the investor’s role is to judge how the service becomes profitable and popular, as well as to provide funds that ensure smooth progress.
Summing up the event, FaB Founder Roujol added that the secret to a startup’s success lies in grouping entrepreneurs with local investors. She hopes the FaB community is a bridge that links Silicon Valley to investors from China and other countries. During the event, Roujol had shared her journey of supporting the next generation of innovation through numerous Silicon Valley-based projects and how she intends to expand the FaB community around the world.
Perhaps no other country is spreading technology-driven services in ordinary people’s lives as much as China. With a growing customer base that has all-new values and purchasing power, the future of the wellness and beauty industries is even more promising. It’s also exciting to think about how the international FaB network, with chapters in 15 cities around the globe, will go on to influence the fashion and beauty tech communities in Shanghai.
Text: Denyse Yeo
Original text (Japanese): BeautyTech.jp editorial team
Report: Qianli
