Driving brand loyalty through omnichannel retail: Case study of Sephora in China

Data show the Chinese cosmetics market is projected to grow to $26bn by 2023 and that Chinese consumers use both online and offline channels to evaluate and purchase, but consumer loyalty in the Chinese market appears to be in decline.

Omnichannel retail and brand loyalty in China

China's retail market presents brands with a considerable commercial opportunity. It is the world's second-largest retail market with a share of approximately 21% and it is expected to surpass the USA as the world's first retail market as early as 2021.1

More specifically, the Chinese cosmetics market is currently valued at $19bn and is projected to grow annually by 11.0% (CAGR 2020–2023) to $26bn by 2023 (Figure 1).

Figure 1: The Chinese Cosmetics Market – Growth Projections2

In terms of Chinese consumers’ shopping preferences, data from the Chinese retail market show...

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