New cosmetics shops bucking virtual trend

"This is why we are opening offline stores and putting efforts into the sector."

For the cosmetics sector, offline experiences are especially importable. According to a report issued by China Insights Consultancy, the country's retail cosmetic sales will surpass 450 billion yuan by 2023, with a compound annual growth rate of 11.6 percent. The retail market driven by the offline user experience still has great growth potential.

A Reuters survey showed that in 2019, although online cosmetics consumption expanded rapidly, 86 percent of those surveyed still preferred immersive offline shopping experiences, and brick-and-mortar retail was their first choice as they were able to see what the cosmetics really looked like and actually try them on.

Peng Yao, CEO of The Colorist, attributed the company's success to the integration of offline and online channels.

"While using bright and bold patches of color to bring consumers into physical stores, we apply online smart operation systems into our brand selection and supply chain management, warehousing and logistics to achieve higher operational efficiency," she said.

With their recent success, industry experts worry over whether new cosmetics collection stores will be able to retain traffic volume and maintain long-term development.

Wang Peng, an associate professor at Renmin University, said:"New makeup collection stores now doing well have first-mover advantages.

However, their business modes are easy to copy. Companies should think of how to further cultivate resources, raise brand recognition and leave a deeper impression on consumers. They may try out methods to better reach young consumers, like digital marketing, group buying and cosmetics blind boxes, said Wang. "Related resources and a professional team are needed to better promote brands more broadly and deeply, and make brands distinguishable from rivals," Wang added.