Capitalizing on the US$1.8 Billion False Eyelash Beauty Segment
E-Commerce merchants are rushing to establish their edge in this highly competitive market and smart logistics might just be their key to global success
False eyelashes have recently taken the beauty and fashion world by storm. These are artificial eyelashes which are designed to define the eyes and enhance the users’ natural eyelashes. But no longer are false eyelashes exclusive to vogue runways and gala events. Today, they have become a booming beauty trend that are a must-have, everyday accessory all around the world.
The rise to global prominence to permeate consumers’ daily lives has culminated in a US$1.8 billion industry, with a projected CAGR of 7.4%.[1]
Latest research also estimated that the U.S., Canada, and emerging economies of Europe will be key markets expanding at the highest CAGR, while East Asia and South Asia are projected to hold around one-third market share through 2031.[2]
Herein lies a growing opportunity for businesses, especially eCommerce merchants who are looking to tap on this booming global trend.
A Highly Competitive Market with Manufacturers From Around the World
The global market for false eyelashes is extremely competitive, with most merchants focusing on establishing a global customer base to achieve economies of scale. This is further fuelled by its rapid rise to popularity which led to the influx of new manufacturers and suppliers from countries such as China.
With the amount of innovations and investments directed into creating more customised, unique and premium products, we anticipate that the demand and competition within this segment will only continue to surge.
To better visualize the full potential of this market and deep-dive into successful sales strategy, we spoke to Nicole, the manager for AliExpress eStore — Lucky Lash, who has witnessed incredible growth in the business.
Lucky Lash is a beauty brand based in Qingdao province. Its main products are a myriad of false eyelashes. These products are characterized by their low weight and cost, averaging US$2–3 each, with overseas customers predominantly from countries such as Spain, France and Russia.
Not Just Luck — Lucky Lash Attributes Smart Logistics as Key Success Factor
Historical sales data from Lucky Lash points to a significant repurchasing behavior of nearly 50% for their core products among their existing customer base, and sales growth is expected to exceed 50% in 2021 alone.
However, they are also competing with over 5,000 eyelash merchants based in the province alone, of which more than 1,000 are engaged in production, processing and trading in this sector, with a revenue of RMB7 billion, representing 80% of the country’s output and 70% of the global market share.
It has become apparent to Nicole early on in the business that it is critical for her to establish a strong competitive edge in order to successfully tap on a wider global market. Aside from offering quality products, she also needs to take her understanding of her target audience and distill that into her sales strategy.
“For businesses, the sooner the product arrives in the hands of customers, the better it is in terms of overall satisfaction and reviews. In a competitive market like ours, timeliness is key to winning customers,” explained Nicole.
“Often, our customers will send us a message upon receiving and testing out the product first, and share that their friends and colleagues are also keen to purchase the products now. These customers will also share their reviews on social channels such as Instagram and TikTok, which further stimulate sales and create a viral effect on consumer demand.”
In order to seize the opportunity in the most timely manner, Nicole’s strategy is to upgrade the logistics service for first-time customers from economy (which takes 30–50 days) to standard service (within 15 days) to reduce the shipping duration by over 50%. In the event where the customer’s destination country is covered by Cainiao’s newly-launched US$5 10-day delivery service, then that would be the preferred logistics service for her to deliver the products to her overseas customers in the fastest time possible.
All these initiatives that go above-and-beyond the regular logistics offerings are based on the premise that Nicole is very confident in her products, be it the quality, craftsmanship, packaging, or the overall aesthetic effect.
Smart Order Consolidation Enables Affordable Logistics Without Compromising on Timeliness
Cainiao’s smart order consolidation is a secret weapon in Nicole’s superior cross-border logistics offerings for customers. Currently, there are 15–20% of daily orders that will be consolidated for shipping. The act of consolidating numerous small parcels into a single large parcel will allow Nicole to upgrade the parcel’s logistics service from economy to standard, effectively reducing the shipping duration by more than 20 days, without significant incremental costs. This has resulted in positive impact on customer experience as customers will now enjoy real-time last mile delivery updates to accurately determine the date of arrival of their items.
“Cainiao’s cross-border parcel delivery service has helped us to reduce logistics costs while enhancing our competitive edge. For customers who purchase a single small product, we are able to keep the total cost at around US$6 after factoring in local taxes. Compared to similar products sold in stores locally, a single product will cost them at least US$10 and more!”
[1] https://www.globenewswire.com/fr/news-release/2021/02/25/2182605/0/en/False-Eyelashes-Market-Size-to-Reach-USD-1-8-Billion-Valuation-by-2024-at-7-4-CAGR-Estimates-Market-Research-Future-MRFR.html
[2] https://www.factmr.com/report/291/false-eyelashes-market
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