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 Lab to Beauty, a beauty brand that specializes in CBD skin care.

Lab to Beauty: Brand Background

Lab to Beauty was established by sisters Katherine and Alison Ragusa from The Advantage Co., a family business that operates across the fashion, beauty, home décor and technology sectors. Alison Ragusa has a background as a health expert, and Lab to Beauty was developed with clean skin care and natural beauty as its core concepts.

Research suggests that CBD (cannabidiol, a chemical compound from the Cannabis sativa plant) can provide treatment for chronic pain and ease arthritis, anxiety and muscle disorders, according to WebMD. The use of CBD in beauty is becoming increasingly popular among consumers globally and is often credited with aiding with skin disorders such as acne, eczema and psoriasis due to its anti-inflammatory properties.

Lab to Beauty expanded CBD beauty into the luxury market with its debut at Barneys, and the brand soon partnered with Fontainebleau Miami Beach, Revolve, Saks Fifth Avenue and select luxury independent stores.

Headquarters Williamsville, New York, US

Funding Stage Self-Funded

Management Team

• Katherine Ragusa, Cofounder
• Alison Ragusa, Cofounder

Brand Spotlight

The Covid-19 pandemic has seen clear shifts in demand in the beauty market, due to working from home and mask wearing. Although the sector as a whole has taken a significant hit, we have been seeing growth in certain categories that present opportunities for brands and retailers, such as self-care beauty products (skin care, body lotions, etc.) and eye makeup. Furthermore, consumers are now looking at beauty through a different lens, where it is a reflection of internal good health. This emphasis on wellness is further driving interest in natural products and ingredients with claimed health benefits, such as CBD. Lab to Beauty offers such natural beauty products across the categories of facial, hair, body and skin care.

The brand participated in Alibaba’s Go Global 11.11 Pitch Fest on September 15, 2020 and has since launched an online store on Tmall Global. The brand is aiming to capture consumer attention on Singles’ Day 2020 by leveraging a culturally relevant skincare philosophy and employing dynamic online campaign strategies to highlight its products.

The Natural Beauty Trend in China

Natural, clean and organic beauty are concepts that are gaining traction among Chinese consumers, particularly with the influence of key opinion leaders (KOLs) on social media. 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 believes that Chinese consumer interest in CBD beauty could be being driven by two factors. First, awareness has been rising over the past few years about the negative impacts of air pollution on the skin. Secondly, Chinese consumers desire “safe” products, associating “natural” ingredients and plant-based products with safety, health and wellness.

Lab to Beauty plans to highlight the healing properties of CBD to appeal to Chinese consumers, and its marketing campaign centers around concerns that are specific to the market, such as safety. Lab to Beauty claims that its CBD is sourced and farmed sustainability; is non-GMO; is THC free and non-psychoactive; and is produced in a food-grade, FDA GMP (Good Manufacturing Practice)-compliant facility.

As natural beauty products gain popularity, the sector is expanding into luxury: According to market research firm Ipsos, 74% of Chinese consumers would buy a natural or organic product even if the price was higher than average. Lab to Beauty is therefore well positioned to enter the China market with its luxury CBD products—a sector in its nascent stages—and capitalize on this trend.

Digital Engagement with Chinese Consumers

It is essential for international brands to engage with Chinese consumers through digital platforms and communicate brand philosophies that resonate with them. Lab to Beauty is taking a multichannel approach to the market. Its products will be promoted via the Tmall Overseas Fulfillment program and the Kaola Overseas Fulfillment platform. The brand will work with each channel’s merchandising teams to offer limited-edition flash buys, red envelopes and group bundles, to drive interest and boost sales on Singles’ Day.

In addition, Lab to Beauty has been working with both US- and China-based KOLs for product and content seeding to increase brand awareness; these KOL engagements will continue through Singles’ Day and beyond. The brand plans to host several livestreaming sessions on Taobao Live over the course of the Singles’ Day pre-sale and sale periods. Ahead of the festival, Lab to Beauty has also arranged for multiple livestreamers that are popular in China to help introduce the brand to the market and educate the consumers on the natural beauty concept.