China is the world’s second-largest economy, and it’s no surprise that its cosmetics market is booming. In fact, it’s expected to be worth $38.5 billion by 2021. This growth has led to increased competition in the Chinese beauty market, which has caused prices to drop for many brands. If you want to stay competitive in this market, you need to know what’s going on. In this blog post, we will explore the Chinese beauty market and all the different ways you can get involved. From trending ingredients to distribution channels and more, read on to learn everything you need to know about this lucrative industry.
China is the world’s leading beauty market
According to a study by Euromonitor, the global beauty market reached $70.4 billion in 2016, and is expected to reach $115.6 billion by 2021. This growth is primarily due to the increasing number of women and aging population in developed countries, as well as the increasing spending power of consumers in these markets. China is the world’s leading beauty market, with an estimated value of $27.1 billion in 2016. This represents a growth of 17% over 2015 and a CAGR of 9% over the 2014-2016 period.
China’s consumer base is particularly active when it comes to purchasing cosmetics and beauty products. In 2016, 82% of Chinese women aged 15+ used cosmetics at least once per month, compared to only 54% of women in Japan and 49% in South Korea. Furthermore, 41% of Chinese women aged 18-24 use cosmetics on a daily basis, which is higher than any other country surveyed (excluding Russia).
The top five categories that dominated the Chinese beauty market are skincare (36%), make-up (21%), haircare (11%), body care (10%) and fragrance/cologne (7%). These categories reflect the needs and wants of Chinese consumers, who are highly focused on maintaining their skin and hair health as well as enhancing their appearance overall.
The Chinese beauty industry is growing rapidly
The Chinese beauty industry is growing rapidly and becoming a leading global player. In 2016, the market was worth $24.4 billion, and is predicted to grow by 5.2% annually through 2021. The main reason for this growth is the increasing popularity of Korean cosmetic brands in China, as well as Chinese celebrities and consumers wanting to maintain a healthy appearance.
The Chinese beauty industry has two main segments: skincare and makeup. Skincare products account for the majority of sales, with makeup making up a smaller portion. Skincare products are more expensive than makeup products, but are thought to be more effective. In 2016, skincare products accounted for 68% of total sales while makeup made up 32%.
The main drivers behind the growth of the Chinese beauty industry are the increasing number of women who want to look good, the increase in spending on luxury items such as cosmetics, and Chinese celebrities influencing consumer behavior. Some of the major players in the Chinese beauty industry include L’Oreal China (owned by L’Oreal), Estée Lauder China (owned by Estée Lauder), SKII (a Japanese brand owned by AmorePacific), Kiehl’s (an American brand owned by Kering), Dior (a French brand owned by PPR), Maybelline China (owned by multinational The Cosmetics Company), and Aimmune Pharma (an Israeli company).
Chinese consumers are becoming more demanding and savvy about beauty products
Chinese consumers are becoming more demanding and savvy about beauty products. In particular, they are looking for high-quality cosmetics that can help them look their best. This has led to a boom in the sale of luxury beauty products in China.
One of the main drivers behind this trend is the increasing number of wealthy Chinese women. These women are increasingly looking for ways to improve their appearance and feel confident in themselves. They are also willing to spend a lot of money on quality cosmetics products.
Another reason why Chinese consumers are becoming more interested in luxury brands is the growth of online sales channels. More and more people now purchase goods online, which means that there is a wider range of available products that appeal to them.
In addition, Chinese consumers are becoming more familiar with different types of cosmetics and how they work. This means that they are better able to pick out the best product for their needs.
The Chinese beauty market is dominated by domestic brands
For over two decades, the Chinese beauty market has been dominated by domestic brands. However, this is starting to change as foreign brands penetrate the Chinese market. Foreign beauty brands have benefitted from the growth of the luxury goods market in China. The Chinese middle class is increasingly spending money on cosmetics and other luxury items. As a result, these brands are able to break into the Chinese market and sell their products there.
Some of the most popular foreign beauty brands in China include L’Oreal Paris, Lancôme, and Estée Lauder. These companies sell a wide range of products, from makeup to skincare products. They also offer services such as hair styling and salon visits.
Some of the leading domestic brands in China include Shiseido, SK-II, Laneige, and essie. These companies produce high-quality skin care products that are popular with Chinese consumers. They also offer hair care products and makeup tutorials online.
Foreign brands are starting to enter the Chinese beauty market
As China’s economy continues to grow, more and more foreign brands are starting to enter the Chinese beauty market. In 2015, the U.S.-based L’Oreal Group acquired a controlling stake in China’s biggest beauty company, Shiseido, signaling a renewed interest from global players in the country’s booming cosmetics sector. Meanwhile, Japanese skincare giant Botanica recently announced its intention to open an office in Beijing and invest up to US$1 billion in the Chinese market over the next five years. With such investment comes innovation; for example, Japanese beauty brand Kose is currently leading the way with its line of vegan lip balms.
However, not all foreign brands are sailing into uncharted waters with success. Estee Lauder has faced criticism for its perceived copycat nature of its products in China—one blogger even coined the term “Chinese Estee Lauder”—and has seen sales decline as a result. Nevertheless, other brands such as Lancôme and Jo Malone have been extremely successful in China thanks to their innovative formulas and tailored customer service. Whether foreign or homegrown, it seems that no matter what type of product you’re selling in China, great customer service is key to success.
What are the major players in the Chinese beauty market?
In China, the beauty industry is growing rapidly. According to a report by Global Industry Analysts, the Chinese beauty market was worth $40.5 billion in 2016 and is expected to be worth $54.8 billion by 2021. The leading players in the Chinese beauty market are L’Oreal, Estée Lauder, Unilever, and Procter & Gamble.
L’Oreal is the largest player in the Chinese beauty market with a market share of 18%. It accounts for 49% of the total sales value of all Chinese companies in the cosmetic sector. In terms of revenue, L’Oreal ranks first with $7.4 billion in 2016.
Estée Lauder is second in terms of market share with a market share of 13%. It accounts for 36% of the total sales value of all Chinese companies in the cosmetic sector. In terms of revenue, Estée Lauder ranks third with $4.2 billion in 2016.
Unilever is third in terms of market share with a market share of 10%. It accounts for 27% of the total sales value of all Chinese companies in the cosmetic sector. In terms of revenue, Unilever ranks fourth with $2.5 billion in 2016.
Procter & Gamble is fourth in terms of market share with a market share of 8%. it accounts for 24%ofthetotalsalesvalueofallChinesecompaniesinthesubstancysector.Intermsoft
China is the world’s second-largest beauty market, and its growth is only expected to continue. In this article, we explore some of the reasons why Chinese consumers are so eager to buy cosmetics, as well as some of the challenges that brands face when trying to penetrate this market. We hope that by reading this article you will have a better understanding of how China’s beauty market works and what opportunities there may be for your business.