Market Trends and E-commerce Dynamics

Data shows that facial care sets and makeup sets were the most popular gifting items, with transaction values increasing by 11.38% and 33.21%, respectively.

In contrast, the transaction value of fragrance sets declined slightly, indicating that consumers prefer to purchase "best-selling individual items" rather than sets.

However, while the industry is experiencing rapid growth, it also faces several challenges. Douyin, as a leading content e-commerce platform, has become a core entry point for traffic.

This trend is putting significant growth pressure on shelf-based e-commerce platforms, and the competition for traffic between content e-commerce and shelf-based e-commerce is likely to intensify.

The high growth of Pinduoduo may also trigger a new round of price wars, plunging brands back into a vortex of price competition.

To avoid the impact of price wars on brand premium capabilities, brands need to take a holistic view and restructure their online and offline channel layouts.