25
eCommerce Whitepaper Volume III How To Win: Portfolio
eCommerce Whitepaper Volume III
How To Win: Portfolio
eCommerce Organic Growth
CategoryPenetration
Online exclusive products becomes a growth driver
76% 68% 32% 32%
Frequency & Basket Size
Online Exclusive Products
When asked where does your incremental eCommerce growth come from:
% of peers answered:
03. Ingredient Experts 06. Package
01. Target Audience
02. Segmentation
04. New Health Care 05. New, Unique, Special
07. IP
Explore 7 Key
Trends
1. Target AudienceGender SpecificKids & InfantPregnancyPet
Varieties of products targeted at women
Source: Kantar Consulting Analysis
Mouthwash EyedropToothpaste
Target at Women
Target at All
Shoppers
Mineral water Milk yoghurt Instant
noodle Wet Tissue
Male products is booming in eCommerce, male consumers increasingly use beauty products to look and feel good
Young Chinese Male shopping habits
“Post 1995 male consumers are using more makeup products in their daily life”
Gender norms are changing in eCommerce
Have boughtBB Cream
Have boughtEye Liner
9%
Have boughtBrow Pencil
9%
Have boughtLip Balm
18.6%
18.8%
BB Cushion
Make-up brands launch men’s product line
Lip Balm Brow Pencil Eye Liner
Males are using make-ups on regular basis
Kids & Infant segments emerged as growth driver across categories online
Kids & Infant trend cross different categories
Mineral Water Mouthwash Health
Supplement Skin Care In other category
Kids Sunscreen Lotion
YOY GR: +9403%
Kids Mouthwash YOY GR: +152%
Kids and InfantsHealth
SupplementsYOY GR: +64%
Kids and infant Mineral Water
YOY GR: +135%
Children segments widely exist in
other categories
Showergel
Lotion Tooth Paste
Milk Baby Food
General Kids & Infant Product
General Kids & Infant product growth rate slowed down in YTD 201806(+24%)
Baby strollers Baby formula Baby diapers
Baby Bottle Baby foods Baby clothes
Special care for pregnant women grew as an obvious trend
SCRIANEN kept expanding fromHealth Supplements to other category
Pregnancy Trends in DifferentCategories
YOY GR:
Shampoo
+37%
Skin Care
+140%
Cosmetics
+193%
Pregnancy Personal Care Specialist
Brand sales on Tmall FlagshipYOY GR: +509%Expansion
Multi Vitamin Calcium
DHA
Shower GelHair Care
Skin CareBody Care
Tooth PasteMouth Wash
Core
Aocilenda Top Bundle claimed using Bird’s Nest and Natural ingredients(Avocado) to provide skin care solution
Bird’s Nest
Avocado
Very sophisticated pets economy has been built with new and emerging brands
“Pet Economy”
Pet Food
Pet Staple Food Pet Snack Pet Health Supplies
Pet Products
Pet Toy Pet Appliance Pet Clean Pet Clothing
Fierce competition on eCommerce
Orijen: an imported brand from Canada which positioned at Luxury market
Total Online Sales
11.7bn CNYYOY GR
+41%
An local Internet brand which specialize in Mass Pet products and start to expand to offline
OccasionTextureScent
Function
Season
2. SEGMENTATION
Toothbrush - Highly segmented portfolio with different shapes of brush head and functions
Tongue cleaning
Intertooth cleaning
2 raw 3 raw Ag+
Portable Daily
2 whiteningbar
6 whitening bar
Ag+ flat shape
Ag+ convex shape
Blade shape
Archedshape
“V” shape
Functional - 12 SKU
Whitening
Anti-germ
Stain remover
“V” Shape – Medium
Small head - 3 SKU Wide head - 23 SKU
6 column 7 column
6 column 7 column
6 column
7 column 8 column
For deep cleaning For efficient cleaning
Basic - 26 SKU
Flat Shape – Soft, Medium41 – Very soft, Soft, Medium, Hard
48 – Very soft, Soft, Medium, Hard
54 – Very soft
65 – Very soft, Soft, Medium
• Japanese imported toothbrushh
• Over 38 SKU
• Sales GR: +233%
• Price* (CNY/pack)
25 Other Brand: 10
Product Information
3. Ingredient Experts
Effective
Rational
Professional
Avoid Risk
Focus on ingredients
Professional Community
Additive-free and organic ingredients are widely recognized by shoppers
Tissue
Skincare Feminine care
Diary
Shampoo
Baby productsDairy Beverage
Cosmetics
Additive-Free Organic
Cosmetics
No preservatives/flavoring essence
No fluorescent agents/ flavoring essence
No lead and mercury/preservatives/ alcohol/ flavoring essence/ mineral oil
Natural ingredients with rich nutrition
No irritantMild without burden
Skin friendlyFor sensitive
*China's organic product certification catalog does not include cosmetics, personal care products
Baby productsLaundry
Natural ingredients are widely seen for different benefits and favored by online shoppers
Juice
Laundry
Shower Gel
Low-calorie
Moisturizing
Mild Stain removal
Intensive hydration
Improve intestinal health Improve immunity
Improve bleeding gums
Moisturizing
Help support urinary tract health
Coconut Enzyme Propolis Others
Strengthen hair roots
Laundry
Nutrition& Health
OralCare
Skincare
Nutrition& Health
Antioxidation
Nutrition& Health
Shampoo
Snack
Beverage
Body warm
Nutrition& Health
Line smoothingWhitening
Skincare
Cranberry
Ginger
Rosehip
Skincare
Products used to communicate benefits
Now products communicate mainly around ingredient
Whitening
Gentle & Mild
Acne treatment & Skin peeling
Anti-Wrinkle & Anti-aging
Restorative Treatment
Amino acids FreeplusAmino acid
cleanser
NATTITUDEAmino acids
Personal care set
VC CenovisVC Arbutin
HFPArbutin Mask
Nicotinamide Olay Nicotinamide Serum
SesdermaWhitening Body Cream
2.5% Nicotinamide
Almond acid DR.WU Mandelic acid
SerumAHA
Alpha HydroxAlmond acidBody Cream
Salicylic acidEau precieuseSalicylic acid
precious water
VE YangShengTangVE Capsule
BlackmoresVE CreamRetinol
NeutrogenaRetinol
Rapid Wrinkle Repair Cream
Peptide Singuladermpeptide anti-aging concentrated facial
essence
Ceramide HFP Ceramide serum EGF
HFP EGF Serum
Lipostides EGFFreezing Powder
Use targeted ingredients as key claim to convey more convincible benefits
4. New Health Care
Detox
Weight Control
Anti-Fatigue & Stress Relief
Anti Hair Fall
Sleep Support
Coke with Dang Shen
Wolfberry+Thermos
90s Health Care
Stay Up Late,Use Mask Best
Hair Fall
Punk Health Care
Best sellers that met new health care needs
Detox Stress Release & Anti-FatigueAnti Hair Fall Sleep Support
Probiotics Enzyme Sweets
Liver Detox VB Complex Steam Eye Mask
Melatonin Sweets
Sleep Spray
Anti Hair Fall Shampoo
Hair Tonic
Biotin
Weight Control
Cereal
Muscle Building
Fasting JuiceBarley Leaves Fiber Refresh Balm
Eye Drops
• Course• Driving
5. NEWUNIQUE SPECIAL
Novelty of flavor meets online shoppers’ curiosity
Beverage Snack Instant Noodle
PeachPlum blossom
TOP 5 Terrible Taste Bundle
Mustard flavor
Hot wing flavor
Spicy Peanut
Spicy Peanut
SamYang-Super spicy flavor
YumYum-Tomyum shrimp creamy flavor
Prima Taste-Laksa flavor-Chili Grab flavorNongfu Spring
ScreemNongfu
SpringTealeaves east
Laoshanbaihua snake grass water
Qiulin GewasDrink
Hey Song Sarsaparilla
Drink
Simplicity Little Everything Mini Package
6. Package
Simplicity was considered as beauty while downsize with multiple benefits were welcomed
Simplicity
DiaryKeidi
• Additive free• Transparent package
ShampooTAMANOHADA
• Nature ingredient• Simple package
Shower GelBotanist
• Herbal ingredient• Transparent package
Little Everything Mini Package
FoodWolong Nuts
• Multi nus• Various nutrition
Health CareFancl
• Daily pack with Ca, VB&VC,Q10,VE…
• Age adjustment
LaundryAriel laundry capsules
• Clean• Anti-Bac• Anti-Odor
Skin SerumAmpoule
• One bottle a day
WipesHearttex
• Super Mini• Pocket fit
Oral CareOkina
• Super Mini• Fresh
62%
79%
claim that they would like to pay for IP
agree that it would improve the
probability of purchase if brands are
endorsed by their favorite IP
Movie & TV IP Celebrity IP
Culture IP ACG IP
Young Generations
7. IP
Cooperating with popular IP or building up self-owned IP can help brands to establish emotional connection with consumers
x
JD joined hands with Line Friends, offering 400+ IP products
JD Open IP authorization to brands and push out co-branded products
Brands cooperated with IP directly
Personalize the brand image of three squirrels
Xin XiangYin made IP “迷弟” for its mini wet tissue
Brand-made cartoon IP images implanted in offline stores
Comics for IP image
JD Super IP Day with Line Friend Brands build up brand-owned IP through personalizing brand images
IP image is popular in DouYin
Small pack sizeSimplicity
Create “WOW” to meet curiosity needs
Make your ingredient stand out
Segmentation based on function, scent, occasion, seasons…(category management
opportunity)
Reach new generation via IP or create your own IP
Sm
all
Special offer for targeted group
Fulfill health care needs in new era
Thank you!
[email protected]@Kantarconsulting.com
Feel free to drop us an email to get more eCommerce Whitepapers:
Stay tuned with our next volume:Kantar Consulting eCommerce Whitepaper Volume IV: How To Win - Content Strategy
Scan the QR code to follow us!
Stay tuned with Kantar Consulting and latest eCommerce news.
