Australian cosmetics platform Adore Beauty plans Chinese entry

By

Benjamin Fitzgerald

Published
Apr 26, 2016

Australian online beauty retailer Adore Beauty is taking on China - and its one billion-plus consumer market - announcing it plans to sell a selection of cosmetics via the country's Tmall platform.

Valued at around $100 billion, the Chinese beauty market is the largest in the world and continues to grow on the back of a burgeoning middle class seeking ethical and natural beauty products, particularly from Australia.

Adore’s Tmall online store will stock a curated range of six brands and around 50 products initially, including Australian brands evo, Lanolips, asap, Alpha-H, Skinstitut and Eleven - most of which will be exclusive on Tmall to Adore Beauty.

Founded in 2000, Adore Beauty is the brainchild of Kate Morris, who started the online beauty site as a garage business with just A$12000.

Today, Adore Beauty is one of the Australia's largest online cosmetics businesses and is now backed by retail giant Woolworths, which acquired a 25% stake for an undisclosed sum. The rest of the business was retained by the founders, according to The Australian.

“We are taking a test and learn approach. We are starting shipping out of Australia first before we look at shifting stock over to a bonded warehouse in China,’’ Morris told The Australian.

“We are assuming it is going to take a little while to get going ... But if we can go in there and offer a product that is better than the local brands, all the tax stuff becomes less important.’’ 

The expansion into China is Adore’s first offshore move and coincides with the company’s 16th birthday.

Adore estimates revenues of $15m-16m this year, up to 70% higher than last year. It boasts 10,000 products, compared to 6000 products a year ago.

Adore's mobile traffic has increased by 140% in Australia, overtaking desktop traffic last year.