Nowadays, although international brands still maintain a dominant presence in China’s cosmetic sector, Chinese domestic brands are striving to attract consumers and expanding market share through strengthening R&D capabilities, introducing competitive cosmetic products, etc.
Forest Cabin, a high-end Chinese skincare brand that focuses on developing skincare products made from traditional Chinese plant ingredient camellia, has made significant strides in the market. It secured a spot among the top 10 brands in China's online essence oil market in 2022.[1] So far its hero product camellia repair essence oil has been sold over 20 million units from its launch. Impressed by these noticeable achievements, ChemLinked delves into the reasons behind Forest Cabin’s success and offers some insights.
Chinese Characteristic Plant Ingredients Catering for Consumer Preferences
Forest Cabin has been endeavouring to develop skincare products made from characteristic plant ingredients since its establishment. In 2012, the brand’s founder discovered that the oleic acid content of red camellia was as high as 90%, having effective efficacy in repairing the skin.[2] This discovery led Forest Cabin to concentrate on creating natural, safe and efficient skincare products made from red camellia. To ensure the ingredient quality, the brand involved in the planting over 10,000 acres of red camellia in locations like Zhejiang and Jiangxi. It also aimed to encourage farmers to plant 50 million red camellia trees in China in the next 20 years.
The brand's emphasis on red camellia resonates with the tastes of consumers today, resulting in a surge in brand popularity. Currently, consumers prefer skincare products containing natural plant ingredients. In consumers’ opinion, ingredients extracted from natural plants are less likely to cause skin irritation, safer, and with better absorption properties. Additionally, in recent years, consumers attach great importance to plant ingredients with Chinese characteristics like peony, ginseng and centella asiatica. This is due to consumers’ cultural identification of domestic ingredients and the satisfactory functions of these ingredients in anti-aging, skin-brightening, skin-soothing, etc. An investigation of CBNData in 2023 indicated that 67% consumers would be more willing to purchase skincare products containing local ingredients.
Essence Oil Product Type Compatible with the Popular “Skincare with Oil" Concept
While international brands have predominantly dominated China's skincare industry, particularly toners, lotions, creams, and essences, they have paid less attention to essence oils, resulting in a notable gap in products in this area. Recognizing this opportunity, Forest Cabin capitalised on developing essence oils as their core product. Additionally, the brand put in every possible effort to educate consumers about the concept of "skincare with oil" to promote this product range. As a result, in recent years, this concept has gained popularity among Chinese consumers. Platforms like Xiaohongshu, a well-known social media platform in China, witnessed the topic of #skincarewithoil# garnering over 120 million historical views. Riding this trend, China’s essence oil market size on Ali and JD platforms exceeded CNY1.1 billion between March 2021 and February 2022, with a year-on-year sales growth rate of 64%.[1] Forest Cabin’s camellia repair essence oil, compatible with this popular concept, achieved huge success in the Chinese market. During the 2022 Double Eleven Shopping Festival, the product claimed the top 1 position on both Tmall’s Facial Essence Oil and Douyin’s Essence Oil Hot-selling Lists.
Continuously Improving Product Competition by Upgrading Technologies and Formulas
Forest Cabin’s consistent investments in research and development (R&D) to upgrade its manufacturing technologies and product formulas may have played a crucial role in their market success. Currently, the brand’s annual R&D investment accounts for approximately 4.5% of the total revenue, surpassing industry average. Under plentiful investments, as of September 21, 2023, the brand has obtained 88 patents, including 39 invention patents. For instance, its sebum biomimetic technology makes the essence oil product more skin-friendly and easy to absorb.
Besides, the brand has built a research center according to the national laboratory standards, which gathered over 40 researchers with master's or above degrees in botany, biology, dermatology, etc. Its R&D team is exploring advanced technologies like biological fermentation and synthetic biology in addition to plant extraction technology to upgrade their next-generation products.
Take the brand’s core formula for example, Qingxuancui, has also undergone continuous evolution from version 1.0 to 4.0, each with more effective repairing and anti-aging functions.
It is reported that Forest Cabin will engage in research cooperation with leading international and domestic research institutions and universities, focusing on the R&D of innovative raw materials, innovative processes and skin care products tailored for consumer’s demand, especially oily products, including essence oil for eyes, oily face cream, oily body cream, etc.
Emphasis on Both Online and Offline Operations
In contrast to most emerging cosmetic brands in China that exclusively operate online, Forest Cabin's success is further bolstered by its emphasis on both online and offline operations, and the integrated development of the two channels.
In terms of offline channels, nearly all Forest Cabin’s offline stores provide free skincare service. Customers can come to experience this service in their free time after purchasing products, which increases the brand’s added value and fosters a deep connection with customers. With regards to online channels, Forest Cabin founded a live-streaming matrix, covering not only renowned live-streaming platforms like Taobao and Douyin, but also emerging channel WeChat. The brand’s WeChat live streaming utilises attractive discounts and giveaways to entice consumers. The lowest price provided during live streaming can reach 85% off the regular selling price of products. In addition, some exclusive products and discounts are only available in the WeChat live broadcast room. For instance, a product is exclusively for sale during WeChat live streaming priced at CNY 9.9, and consumers who place orders can receive additional gifts.
In order to combine the strengths of these two channels, the brand also forged an Online-Merge-Offline model, integrating online marketing with offline experiences. For instance, after placing an order in Forest Cabin’s live broadcast room, customers will gain a skincare experience coupon, which can be used in offline stores for free skincare. If customers are attracted to offline stores, the shop assistants there will add the customers’ WeChat accounts and add them into the store's WeChat group. Afterwards, the shop assistants will occasionally share live-streaming links and discount information with customers both in the group and via private message, guiding interested customers to place orders online. By doing so, the brand has successfully expanded its reach and cultivated a loyal customer base.
Notes:
ChemLinked provides comprehensive market research reports to assist global companies in making informed decisions when introducing new ingredients in China. Our research covers various aspects, including Ingredient Market Size, Pricing Information, Competitive Landscape, Application Status, Company Preferences, Distributors' Data, and Regulatory Requirements, among others. Besides, REACH24H, the parent company of ChemLinked, has extensive expertise in Douyin (TikTok) operation and has formed strong collaborations with more than a thousand KOLs. The comprehensive services of REACH24H, such as flagship store management, short video promotion, self-livestreaming of stores, and KOL-invited livestreaming, can assist brands in gaining wider recognition and achieving better sale performance. For more detailed information, please contact ChemLinked at contact@chemlinked.com.
**Disclaimer: All pictures used in the article are from the Internet.
