Chlitina forecasts strong growth thanks to rising Chinese middle class
Speaking on the release of its quarterly earnings, the company, which enjoys a presence of 3,400 stores in China and more than 200 in Taiwan, stated it will be investing further in its newly launched e-commerce platform, Beauty Health Happiness, and expanding its digital reach through apps and shopping malls.
“The contribution of e-commerce sales is still low, but we see great potential going forward,” consultancy firm Yuanta Securities Investment Consulting Co reportedly said of Chlitina in March.
Although China’s economic growth slowed to just under 7% last year (the lowest level in the last 25 years), commentators are optimistic that the rise of middle class consumers turning to e-commerce in the country will begin to fuel healthy growth again. Chlitina’s strategy looks set to tap into this rise.
Online presence
In July last year, Chlitina launched its Beauty Health Happiness platform, a move which has helped to integrate its digital operations with its brick-and-mortar stores.
Chlitina has stated that this year, it plans to start tapping into other digital platforms too, including apps and the development of an ‘online shopping mall’. The investment into digital retail will allow it to strengthen the breadth of its product offering, the company says.
Chlitina is just the latest in a string of companies, both domestic and international, which have made moves to exploit the ever-rising potential of e-commerce in China recently. For example, Sephora recently announced a partnership with one of the country’s leading e-commerce platforms, JD.com.
Digital arena
Alongside the rise of domestic retail online, cross-border e-commerce is fuelling the growth of digital selling in China.
JD.com recently signed a five year deal with the equivalent e-commerce retail platform in South Korea, Lotte.com, in order to facilitate the cross-border sales of cosmetics and fashion in both countries.
