The Peculiar is Estée Lauder’s finest wager for China, however hurdles stay

The corporate just lately introduced the China launch of The Peculiar, a model it gained by means of its acquisition of DECIEM, which was accomplished in June 2024.

The Peculiar is well-positioned to fulfill the rising demand for efficacious and high-quality skincare in China.

“The Peculiar’s ingredient and efficacy pushed innovation idea, minimalist, clear strategy to skincare aligns nicely with Chinese language shoppers’ rising choice for efficient, good cost-performance merchandise,” mentioned Allie Rooke, Clear Magnificence Asia CEO and China market knowledgeable.

She highlighted the success Estée Lauder has skilled by rebranding Clinique barely within the Chinese language market.

“Final yr Estée Lauder did a rebranding to its OG derma model Clinique and launched a China-tailor-made line Clinique CX with give attention to post-medical magnificence skincare. This may be seen step one of its technique shift in skincare. The grand launch of The Peculiar is the second large transfer.”

Nonetheless, the model will face challenges in China, mentioned Rooke.

Firstly, she highlighted the extreme competitors from its long-standing rivals in addition to newcomers – particularly native Chinese language manufacturers on the identical value tier.

Secondly, Estée Lauder would want to maintain up with the tempo of innovation within the Chinese language market.

Moreover, the model must work out how you can “hold steadiness between distinctive model character and mass advertising and marketing communication,” she mentioned.Lastly, Rooke mentioned the model could be inclined to the Sino-US commerce warfare ought to it escalate.

A strategic transfer

This was a strategic transfer below new chief government, president, and director Stéphane de la Faverie to sort out the continuing challenges in China which have deeply affected its skincare revenues and its efficiency in Asia Pacific.

“By section, the difficult status magnificence panorama in China pressured Estée Lauder to rethink on the model portfolio technique,” mentioned Rooke.

“Evaluating with its primary competitor, the L’Oréal Group, Estée Lauder’s model portfolio in China isn’t that balanced with a lot heavier weight within the status section, which can not cater to the present market very nicely. The massive market share progress is L’Oréal Paris in China is an effective instance.”

Rooke added that Chinese language magnificence shoppers immediately have extra curiosity in cosmeceutical skincare merchandise as they understand them to be extra efficacious.

“Chinese language shoppers have gotten extra subtle and their wants in skincare changing into extra numerous and focused. Lately dermatological, medical and excessive efficacy have been the preferred ideas in skincare,” mentioned Rooke.

“The massive success of SkinCeuticals, CeraVe from the L’Oréal Group, and C-beauty giants akin to Big Biogene, Bloomage Biotech are the most effective proof of shoppers’ curiosity. Estée Lauder has been sluggish on this space and should catch as much as seize market share.”

Rooke estimated that the agency may have accomplished the regulatory necessities for six to eight SKUs for The Peculiar’s grand launch.

She expects best-sellers such because the Soothing & Barrier Assist Serum, a vitamin B12 serum often called the pink serum by followers, to be a part of the launch.Beneath DECIEM, The Peculiar entered China by way of cross-border e-commerce since 2019 and has since gained an enormous fan base in China, Rooke highlighted.

“There have 64,000 followers and over 40,000 posts of it on REDNOTE. Its official flagship retailer on Tmall World has over 334k subscribers.”

Rooke estimated that the agency may have accomplished the regulatory necessities for six to eight SKUs for The Peculiar’s grand launch.

She expects best-sellers such because the Soothing & Barrier Assist Serum, a vitamin B12 serum often called the pink serum by followers, to be a part of the launch.