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P&G Banks on Chinese Douyin Influencers as Sales Decline

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P&G Banks on Chinese Douyin Influencers as Sales Decline

Procter & Gamble (P&G) is revamping its marketing strategy on the Chinese shopping app Douyin amid declining sales. To drive growth for its beauty brands, it will focus on influencer partnerships and livestream commerce.

As per Reuters, the Cincinnati-based consumer goods giant reported that its Pantene shampoo line is leading category growth on Douyin, which has emerged as China’s fastest-growing online retail platform. This success comes as P&G faces a 15% revenue decline in China during the quarter ended September 30, according to Alex Keith, the company’s Head of Beauty.

The beauty segment represents approximately 18% of P&G’s $84 billion in net sales for the fiscal year ended June. In China, the company’s contribution to total net sales has dropped from 10% to 7% over the past year.

P&G’s new approach includes partnerships with Douyin influencers such as Ni Bi Yi, a young mother, and Chou Dan, known for their comedy content. These content creators promote products like Pantene’s Jasmine fragrance line through the platform’s livestreaming features.

The company is establishing brand houses on Douyin, including a dedicated page for skincare brand Olay. Current promotional strategies include significant discounts through livestream commerce, with some products offered at up to 30% off regular prices. A review of Olay’s Douyin flagship store shows body lotion discounted by 19.3% and whitening sets reduced by nearly 30%.

iiMedia recently reported that China’s live-streaming e-commerce market was valued at 20.52 billion yuan ($2.8 billion) in 2022 and is projected to more than double to 48.06 billion yuan ($6.7 billion) by 2025. In June, reports emerged that China was considering officially recognizing live streaming as an occupation. 

Beyond Douyin, P&G is expanding its presence on Xiaohongshu, a lifestyle app popular with young Chinese women. The platform, often compared to Instagram, hosts accounts for P&G brands, including Pantene, Head & Shoulders, and Rejoice.

Reuters reports that the strategic shift comes as Chinese consumers increasingly abandon traditional retail stores, where P&G built its presence over decades, in favor of social commerce platforms. While the company advances its beauty and personal care brands on Douyin, it is currently holding off on introducing fabric care brands like Tide to the platform.

P&G continues to face challenges in China’s current economic environment, with Keith noting that higher-end categories are experiencing decreased sales due to low consumer confidence. The company’s SK-II brand, which has faced consumer resistance due to its Japanese origins, has recently joined Douyin despite a previous absence from the platform.

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David Adler is an entrepreneur and freelance blog post writer who enjoys writing about business, entrepreneurship, travel and the influencer marketing space.

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