Growth market for German brands: Cosnova goes East!

Growth market for German brands: Cosnova goes East!

German brands have a good reputation in the Consumer country of China, not least the car industry knows.Good sales figures from China have just saved Daimler's balance sheet.German brands can also score in the market for care and beauty products.The cosmetic provider Cosnova uses services from the Alibaba Group and LiveStreaming Promotions.

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Germany is by far the largestEuropean trading partner: in 2018, German exports to China spent around 93 billion.Euro, the bilateral trading volume was almost 200 billion.Euro.According to the Federal Ministry of Economics, almost a third of the EU's entire trade volume with China (around 605 billion.Euro) auf Deutschland.China remains a target market for German companies: It is the political intention of the Chinese government to sustain more sustainable growth, to catch up in the high technology sector, but above all to strengthen internal consumption.And there is an increasingly important role there.In the case of Chinese consumers, personal well -being increasingly focuses on.For example, Statista 2020 predicts a market volume of 45.4 billion.Euro, was China zum zweitgrößte Markt für Schönheits- und Körperpflege weltweit macht.

Growth forecast 9% on the second largest market for beauty and body care

According to the forecasts, market growth will be almost 9%, which in 2025 a market volume of 69.6 billion.Euro erreicht wäre."An important factor for this growth is the rapidly growing and powerful middle class in China, which mainly makes young customers with other needs," explains Karl Wehner, Managing Director Alibaba Group for Germany, Austria and Switzerland.In addition, there are additional drivers online trade, social media and the interest in international trends.From the growing desire for imported products, there are opportunities for German brands to gain a foothold on the Chinese market: “Products from Germany stand for high quality and strict manufacturing standards and are therefore for Chinese customers who upgrade their lifestyle by buying high -quality import goodswant, particularly attractive, ”says Wehner.

© Cosnova/Screenshot

Cosnova has been present in China with a flagship store online since April 2019

Cosnova has been present with flagship store on Tmall since April 2019

The German cosmetic provider Cosnova is already present in China.The company, which employs 650 people worldwide, including 450 at the company's headquarters in Sulzbach near Frankfurt am Main, opened a flagship store in April 2019 on the Alibaba platform Tmall.Since then, brands such as Essence and Catrice, with which Cosnova 2018 have been a global turnover of 435 million.Euro erwirtschaftet hat, auch in China online vertrieben.Growth seems to be inevitable here if one can believe the market observation of Statista, which justifies the growth potential in the beauty market with the new generation of young consumers, the popularity of social media and online trading.

The last online scream: live streaming promotions

The combination of shopping and social media in particular are extremely popular in China, and rightly so, as Olaf Kolbrück thinks: Living streaming promotions are always more entertaining than clicking through a product detail page.The products are clearly shown in the stream via the smartphone, the smartphone is constantly in motion - everything is interactive, personal and emotional.Livestreaming also enables a broader spectrum of customer interaction.A chat runs while streaming a product performance.Seller or brand react quickly to the questions of the audience, intuitive, authentic answers create additional trust in the customer.

Wachstumsmarkt für deutsche Marken: Cosnova goes East!

© Alizilla/Alibaba

Live streaming at Taobao

The seller can also distribute discount codes via the stream and interested consumers have the opportunity to buy right away without calling first and giving account data and address.In May this year, Cosnova showed how to use this tool effectively for the generation of sales: As Alibaba reports, the company in cooperation with the Chinese influencer Yanjiu was able to win a variety of new customers.While around 97% of the orders were made by new customers, Cosnova was able to account for a conversion rate of visitors to orders of around 31% in their own Tmall Global Flagship Store.

The marketplaces are growing, saying: more and more providers are romping

However, the great popularity of such platform for consumers and corona pandemic means that the marketplace becomes fuller: According to Alibaba.“If a brand wants to use this potential, it should carefully consider the necessary measures.It requires a market-specific strategy and ideally also a implementation partner on site that helps to control everything from day-to-day business to marketing activities, ”says Alibaba manager Karl Wehner.

Market knowledge is important, but cooperation partners are mandatory

Especially since German companies in China are still subject to numerous restrictions and discrimination compared to Chinese companies.The Federal Ministry of Economics includes the compulsory joint venture in individual industries, lack of access to certain economic sectors and the restriction to minority investments in certain areas.Against this background, it can be worth checking pure sales concepts.MORE ON THE SUBJECT

© Alizilla/Alibaba


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