New business opportunities discovered in niche markets! Sellers leverage sales multiple times on Shopee

In recent years, with the awakening of the awareness of "pleasing oneself" and the increase in the purchasing power of young consumer groups, the global personal care and hairdressing market is showing a booming trend. Under the development trend of refinement, high-end and specialization, the market potential of categories is being continuously released. Take Shopee as an example. Beauty and personal care products on the platform are becoming more and more popular, especially personal care and hairdressing categories, which are becoming a new growth point.

Among the many overseas destinations, Southeast Asia has a personal care market of nearly US$20 billion.

According to Statista's survey data, the beauty, health, home and personal care sector in Southeast Asia is worth US$18.5 billion, and is expected to grow at an annual rate of 16% between 2022 and 2026 - the Southeast Asian personal care and hairdressing market leaves enough room for new brands to develop opportunities.

At the same time, Southeast Asians generally have thick hair. Local consumers are deeply influenced by Korean and Japanese fashion culture and love hair dyeing and perming. Therefore, they have very high demands for their own hair care and hairdressing. Driven by high demand, Southeast Asian consumers' spending on hair care products has seen sustained growth.

The personal care and hair care brand " SEVICH" seized the opportunity in this market and successfully gained a place in the Southeast Asian market through differentiated products + building brand influence + platform support.

Choose the right market and platform! SEVICH is experiencing rapid growth

Among the many brands going overseas, the personal care and hair care brand " SEVICH" has achieved particularly outstanding results in Southeast Asia.

From cosmetics to hair care, SEVICH has determined its main categories and products through continuous experimentation. Currently, SEVICH's main products are hair care products, including hair dye series, styling series, hair replacement series, and hair care series.

In the early days of the brand, SEVICH focused on the European and American markets. In 2019, it began to layout the Southeast Asian market and entered the Shopee platform.

When entering a new market, the first step is to identify market demand.

When SEVICH was doing market research, it found that Southeast Asian consumers tend to buy products with high cost-effectiveness and attractive packaging. This demand point is highly similar to that in China.

After delving deeper into consumer demand in various markets, SEVICH discovered that the Philippines and Vietnam held tremendous business opportunities. Local consumers had a relatively large demand for hair care products, so SEVICH decided to focus on the Philippines and Vietnam markets.

According to Pitchbook data, the global hair care market has an annual growth rate of 46%-48%, and it includes many very niche products. SEVICH develops related products based on the needs of local consumers, ushering in a rapid growth in sales.

So, how did SEVICH successfully build an overseas brand and increase its sales several times in just four years?

Starting from scratch, SEVICH brand building

SEVICH's parent company, Guangzhou Shengweichen Biotechnology Co., Ltd., is an emerging biotechnology company that has long been committed to the sales of high-end, professional cosmetics.

Since the company was founded in 2014, SEVICH started to establish its own brand in 2015. After that, the company has been exploring overseas markets with SEVICH as a carrier. SEVICH said that before the brand was established, SEVICH mainly sold cosmetics of other brands. In order to better control product quality and follow-up services, SEVICH chose to establish its own brand SEVICH.

SEVICH has been exporting to Japan, South Korea, Europe and the United States for a long time, and its main platforms include Amazon, Shopee, AliExpress, Alibaba International Station and Lazada . The sales background of multiple platforms allows SEVICH to reach the target consumer groups in various ways.

SEVICH has captured unmet consumer demand and has a very accurate positioning of potential customers. Through market research, SEVICH has determined its own brand concept: youthful and cost-effective!

Based on this, S EVICH started a series of brand promotion activities.

First, SEVICH promoted its brand on Facebook and Instagram, and assigned specialists to operate the accounts on these social platforms. Through social media marketing and refined operations, SEVICH allowed consumers to have a deep understanding of the product advantages, and directed potential consumer traffic to the platform and then to the store, further increasing product sales.

At the same time, in order to let consumers establish awareness of SEVICH's brand image, enhance brand awareness and influence, and expand corporate resources and partners , SEVICH will regularly participate in foreign exhibitions . In this way, it can not only drive B-end users, but also implant brand impressions in C-end consumers invisibly.

With the help of Shopee traffic, SEVICH continues to improve its brand influence

In terms of improving brand influence, SEVICH strives to respond to the latest policies of the Shopee platform, actively participates in free activities provided by the platform such as flash sales and free shipping, and leverages the platform's overall traffic to drive store traffic, thereby increasing brand influence, gaining consumer recognition , and seeking more exposure .

At first, SEVICH only received 40 to 50 orders per day on the Shopee platform, but with the advancement of a number of brand promotion initiatives, the number of orders has now increased to over 2,000 orders per day.

In addition, to attract more Vietnamese consumers, SEVICH enabled the affiliate marketing function through the China Seller Center, maintained regular and continuous delivery, and uploaded multiple banners that highlighted the brand's personality and characteristics. In order to cooperate with the 6.6 and 7.7 promotions, SEVICH also set up activities with higher commission ratios in advance to further drive store sales growth.

In the end, on the day of the 7.7 promotion, the sales contributed by Shopee’s affiliate marketing accounted for 23% of SEVICH’s total store sales, and the affiliate marketing investment-output ratio was as high as 25 times.

SEVICH said: "During the promotion period, we will let consumers know about the brand by giving appropriate discounts. Because the order volume during the promotion is often large and the customer groups reached are also large, the brand can be directly introduced to consumers. Therefore, we have prepared multiple lead-in products. The main purpose is to let consumers use this product first. After using it, if they recognize this product, they will choose the second, third, and fourth similar products, allowing consumers to go through the entire process from knowing to believing to buying, thus generating repeat purchases and bringing lasting sales."

After seizing the traffic opportunity through multiple means, the SEVICH brand saw significant growth in its performance on the Shopee platform last year, with annual sales in 2022 exceeding 10 million.

When a brand goes overseas, how can it quickly create a hit product?

For sellers, the importance of successfully creating a hit product is self-evident, as it can contribute huge profits to the store in terms of traffic and sales. However, many novice sellers are a little overwhelmed, saying that they have no experience and don’t know which products can become hits.

SEVICH has extensive experience in creating popular products. It believes that it is very important to find the right market gap to develop customized products. Take SEVICH's popular product, hair care essential oil capsules, as an example. At the beginning of product development, SEVICH found that only one merchant in China was making this product. It was a relatively niche product with a relatively high price. However, capsule-shaped products are very convenient and easy to carry. They have great growth potential and considerable profit margins.

Therefore, SEVICH saw the business opportunity, found the core competitiveness in the product, and began to customize capsule-shaped products based on the market demand points in Southeast Asia. It created hair care essential oil capsules and finally succeeded in breaking through in the market.

SEVICH is just a microcosm of many cross-border sellers. For sellers who want to enter the market, the newly emerging personal care and hairdressing market has a promising future and is still a blue ocean in Southeast Asia. The Shopee platform will also drive sellers to usher in new growth.

As a leading e-commerce platform, Shopee attaches great importance to brand development. In the past few years, many brands have doubled their transaction volume by relying on Shopee Mall .

According to the authoritative mobile data analysis platform data.ai, Shopee ranks among the top three shopping apps in terms of average monthly active users growth in 2022, and ranks first in the average monthly active users growth of shopping apps in Southeast Asia and Brazil. At the same time, Shopee has a wide brand influence and ranked fifth in YouGov's 2022 Global Best Brands List, the only e-commerce brand in the top ten.

To further unleash the potential of brand development, the 2023 Shopee Brand Growth Summit will be held on June 29. Don’t miss out on the exciting content! Scan the QR code below to register with one click.

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