FANCL’s premium line vies for a slice of China’s skin ageing cosmetics market via e-commerce platforms

Launched by Neof Corporation, a subsidiary of FANCL Corporation, BRANCHIC was established with the aim of expanding into the global premium skin care market.
The brand entered Chinese cross-border e-commerce platforms such as Tmall, RED (Xiaohongshu) and Douyin in June 2022.

“​China’s cosmetics market continued to grow despite the pandemic. Although growth is slowing, it is projected to continue at a CAGR of 7.2% after 2022. E-commerce channels accounted for 39% of total sales in 2021 — Tmall and Taobao are still the biggest players, while sales on JD and Douyin are increasing, with the latter seeing significant growth.​

“There is a large market for premium skin care products in China. We want to strengthen our position as an innovative and high-performance brand in this market first, before pursuing further expansion globally,” ​Yuko Hamada, Chief Examiner of BRANCHIC’s Business Promotion Group, told CosmeticsDesign-Asia​.

In addition, the firm has observed that serum products are particularly popular on these e-commerce platforms.

“There are five anti-ageing products in the top 10 most popular essences on Tmall and Taobao, indicating a rising demand for this category. ​Brands with products that have patents and contain unique ingredients, and that show efficacy when applied on sensitive skin have an advantage.​

“BRANCHIC is targeted at consumers in their late 20s and above, who are highly invested in skin care and seeking anti-ageing effects. Our products are made from ingredients with anti-ageing functions to improve skin hydration and texture, which is in line with the needs of Chinese consumers, so we expect our brand to perform well there,” ​said Hamada.

Efficient and intensive care​

Specifically, BRANCHIC uses ingredients that activate Merkel cells (found right below the epidermis and are very close to nerve endings that receive the sensation of touch) via decapeptide-4 peptides, which help stimulate collagen and elastin synthesis, promote regeneration of skin cells and wound repair, and reduce fine lines and wrinkles

The brand recently released two new products, namely Skin Mask and Serum Charge Capsule, for the Japan and China markets.

“The skin condition of our target audience tends to be affected by busy lifestyles, sleep deprivation and stress. Therefore, there is a high demand for quick and intensive care that can offer visible results efficiently,” ​Hamada added.

According to the brand, Skin Mask can be used in two ways — as an overnight mask for concentrated care while sleeping, or a wipe-off mask as part of a speedy skin care routine. 

On the other hand, the Serum Charge Capsule is a face oil formulated with 100% plant-derived ingredients. Each capsule can be mixed with a mask or applied on its own.

Increasing sales channels​

In its local market, BRANCHIC’s products are sold via its website and in beauty salons.

Starting last year, some beauty salons have introduced services using exclusively BRANCHIC products, which are said to be “highly rated” by customers and aestheticians.

With the goal of becoming the “number one brand” in this channel, the firm is working with Beauty Garage, a major wholesaler of beauty products to salons in Japan.

“Since its launch in October 2021, BRANCHIC has been well received mainly by women in their 30s for the products’ effectiveness and comfort of use. The level of satisfaction can be seen from consumers who have repeatedly purchased our products over time.​

“At beauty salons, more consumers are expected to have greater exposure to our products. To allow more people to experience the goodness of BRANCHIC, Neof Corporation will continue to expand the platforms where our products are available.”​