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  • Zixiao Li

How Much Money My Brand Needs to Spend in Order to Succeed in China?

With its $4-billion-worth pre-IPO round, Perfect Diary has leaped to the top among all Chinese cosmetic brands.

Chinese Marketer Doris attributed the success of Perfect Diary to the rise of Chinese e-commerce business in 2018. She also pointed out that it was the huge amount of advertising, along with the enormous number of SKUs, that had widen the gap between Perfect Diary and its competitors.

According to Doris and HSY Data, Perfect Dairy topped the number of advertisements on Bilibili at 3,229 during the past six months, exceeding the second place for over 1,000 ads. The typical practice of the How Brands Grow theory no doubt helped Perfect Diary earned more market shares.

For brands who are trying to enter the Chinese market, one thing to keep in mind is that you should be prepared to spend enough money before you see the scale start to tip in your favor. Without a strong commitment and clear strategy, it could mean all your investment turns into waste.

One strategy that could help you reduce the investment is focusing on niche segments that haven't been saturated yet. When evaluating which "hero products" you plan to use for your China market entry, pick something that has long growth potential. Don't pick some just because they sell well in your home market.

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