Cosmetic Brands Market in China
The Cosmetic Brands Market in China has witnessed fast growth as both men and women begin to devote much more effort in modeling their appearance. The booming market appeals to foreign groups and domestic manufacturers at the same time.
Foreign Cosmetic Brands in China: An emerging market with great potential
China has ranked the world’s second largest consumer of cosmetics and its market still holds tremendous potential. The retail sales of cosmetics in 2014 reached 162.5 billion yuan while the compound annual growth rate of last five years keeps at a level of 13.2%, which goes beyond America and Japan. The scale of the market is predicted to reach 423 billion yuan in 2019. Development of economy in China mainly attributes to the growth of cosmetics consumption. Chinese have better spending power nowadays to invest on skin and health care, a fact that attracts numbers of foreign brands to promote their products in China. As the Chinese proverb says: love, beauty, and heart, are things that everyone possesses. Most females in China use cosmetics every day and a more and more are using makeup to go outside. However, there is still a huge gap of per capita consumption for cosmetics between China and US. Indeed, on average, one Chinese woman spends $35.04 on cosmetics in 2014 while American’s will pay $292 per year per person. Therefore, with the constant development of China, increasing the number of consumers will release the potential of China cosmetic market.
Cosmetic Brands Market in China dominates while domestic one’s rise
Multinational brands are again dominating the Chinese cosmetic market during the recent years. Indeed, 9 out of top 10 players, are foreign groups owning by famous brands like Procter&Gamble from the U.S., L’Oreal from France and Shiseido from Japan. In 2014, international brands shared 32.6% of the market while domestic ones only have 9.3% of the market. Chinese consumers widely accept foreign products because of their long history in cosmetics production and their significant investment in R&D. Widely-spread advertisements with the help of celebrity endorsement boost the demand of those kinds of product, a communication tool that is attracting plenty of customers.
Nevertheless, domestic cosmetics are rising in the fierce competition with big foreign groups. Due to local advantages, domestic cosmetics brands meet the local consumers’ demands better. For instance, most Western products don’t have whitening efficacy while almost all the Chinese females pursue white and bright skin, domestic products make considerable efforts in whitening products. Moreover, local companies have more flexible supply chain management and tacit cooperation with franchise stores and E-commerce suppliers. With the promotion of brand awareness and trust, the prospect of domestic outstanding cosmetics companies is optimistic in the next few years.
Male cosmetics market need to be developed
In contrast to various sorts of female cosmetics, the male doesn’t have many choices when they purchase skin care products, which indicates a great opportunity for cosmetics companies. Male cosmetics market in China keeps a fast growth of 20% in the past few years the great part of existed male cosmetic brands like L’Oreal and Nivea have a high demand due to the rapid expansion of the industry. China has nearly 100 million male consumers with increasing demand. The reasons for a better appearance are multiple; Chinese man is more and more careerist, and excellent presentation can help getting a promotion. Daxue Consulting survey shows that 60% of Chinese male use cosmetics every day and 90% of females think that men should use their cosmetics because of the physiological differences. Thus more and more people begin to buy expensive cosmetic products to solve their skin problems. Therefore, cleansing products and moisturizing products are Chinese men’s best seller. The rising demands for male cosmetics products have already drawn the close attention of several cosmetics manufacturers.