THE WHAT? Kao has recognised the role that resellers play in the Chinese retail landscape and is working with TrendExpress to sanction bulk buying for that express purpose, according to a report published by Nikkei Asia.
THE DETAILS The J-beauty manufacturer will sell a set volume of product to TrendExpress, who will manage the inventory. The products will then be posted on select Chinese influencers’ online stores (usually via WeChat or Taobao) and, once sold, TrendExpress will handle the shipping.
Meanwhile, Kao will hold monthly information sessions for some 30 resellers, chosen for their loyal following and experience selling beauty, to disseminate key product information.
THE WHY? With Kao heavily reliant on department store sales and Chinese tourists, it has had to get creative since the pandemic curbed travel and shuttered stores. The deal with TrendExpress will help allay some of the concerns manufacturers have had about resale sites in the past, with inventory management helping to maintain a level of control on pricing.