Singles’ Day (also termed 11.11 Global Shopping Festival by Alibaba) is held annually on November 11 and is the largest global online shopping festival. In the lead-up to this year’s event, our Brand Journeys to Singles’ Day 2020 series profiles 11 brands that are participating in Singles’ Day, and we explore each brand’s journey on Alibaba’s cross-border e-commerce platform, Tmall Global.In this report, we spotlight Punky Colour, a hair-dye brand.
Punky Colour: Brand Background
Punky Colour is a US hair-color brand that specializes in semi-permanent hair-dye products. With in-depth research into hair-dye technology and heavy investment in cutting-edge product development, the brand pitches its products as “durable” hair-coloring solutions that stay vibrant even after multiple washes. The brand credits its “loyal following” to its innovative colorants, healthy ingredients and customer-centric business strategy. In 2013, American International Industries acquired Punky Colour to add to its existing portfolio of over 65 brands.Facilitated by in-house R&D teams, the brand seeks to provide high-quality products to its distribution partners, which supply local logistics expertise and strong customer relationships.
Brand Spotlight
Hair care is one of the biggest categories in China’s beauty and personal care market, and the at-home coloring category likely benefited from the coronavirus-led temporary closures of hairdressers and beauty salons during lockdowns. With more consumers now comfortable with at-home hair coloring, there is increased opportunity for innovative brands such as Punky Colour to enter the market.Punky Colour is doing this through Singles’ Day 2020, having joined the event through Alibaba’s Go Global 11.11 Pitch Fest on September 15, 2020. To stand out in China’s e-commerce space, the brand is leveraging its R&D experience to appeal to Chinese consumers, with a focus on clean beauty. Punky Colour is offering its popular range of vibrant hair-color products on Tmall Global, comprising a “vegan and cruelty-free” range of coloring solutions and bright shades to consumers who are rapidly embracing clean beauty and wellness in their daily routines.China Market Entry Post Covid-19: Clean BeautyAgainst the backdrop of the Covid-19 pandemic, consumers have turned their attention to health and wellness. Increasing demand for clean beauty among Chinese consumers reflects the popularity of natural and plant-based beauty products—a trend driven by influencers and key opinion leaders on Chinese social media platforms. According to McKinsey, household incomes among Chinese consumers have been on an upward trajectory since 2012 (excluding Covid-19 disruptions), which is influencing trends in the beauty sector, as many beauty shoppers report being willing to pay a premium for beauty products with natural or organic ingredients that they perceive to be clean. According to market research firm Kantar, 54% of Gen Z consumers in China say they value plant-based beauty products when asked about skincare concepts. Furthermore, according to a recent Coresight Research survey, one-third of beauty consumers in China are interested in clean beauty, and 28% are interested in natural and organic products.Coresight Research identifies two reasons that likely contribute to this demand for clean beauty products in China. Firstly, the idea of utilizing the power of nature and plants fits in with traditional Chinese medicine philosophies. Secondly, the beauty industry has experienced incidents related to product safety in recent years, making brand reputations a focal concern for consumers and leading the Chinese government to increase product regulation standards. According to Chinese online media company Sohu, market trends indicate that consumer demand is shifting away from simple product effectiveness toward product safety and ingredient quality, which are becoming key factors in shoppers’ purchasing decisions. Punky Colour claims to employ green beauty ideas across all its products and packaging. The brand’s hair-dye products are vegan, not tested on animals and utilize ingredients that promote hair health. Punky Colour packing is designed to be small and simple, using 100% recycled materials.Local Chinese brands are largely yet to adopt the organic, green or clean beauty trend, so international clean beauty products tend to prove popular given their associated exclusivity and reputability.Engaging with Chinese Beauty ConsumersDemand for natural beauty and imported products provides a strong growth opportunity for Punky Colour in the China market. The brand’s offering of clean ingredients that produce vibrant hair colors is likely to prove a successful combination for Chinese consumers seeking striking social media photo opportunities and expressions of individuality. The brand’s hair dye is available in over 20 vibrant shades, including lagoon blue and apple green. Punky Colour has utilized different marketing approaches, such as livestreaming, to establish strong brand awareness, excitement and trust among local consumers. Moreover, to deliver an original and consistent brand experience, Punky Colour will use the same packaging in China as in its domestic market. Participating in the upcoming Singles’ Day shopping festival through the Tmall Global platform will spotlight the brand’s high-quality products to a wide consumer base and provide extensive opportunities for Punky Colour to engage with Chinese beauty consumers.
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