Cosmetics market in China is exploding
It is true that money can’t buy happiness, but in beauty it can greatly help. The similar proportionate increase is reported for purchasing power on Cosmetics market in China. We can evaluate China’s economic health by his consumption trends of beauty products. Recent years showed a growth in cosmetics market in China.
Cosmetic market in China
The United States are undoubtedly the first cosmetics market in the world with over 55 billion in sales per year. America and Europe have a global cosmetics market share of 20%,while Asia holds 35%. China, being mainly responsible for that big share has become the second largest market for cosmetics.
Skin care products are the most popular. Although the makeup market started later, it is rapidly developed and sales growth is increasingly high.
Foreign cosmetics brands in China
Foreign cosmetics brands are the predominant players in this market. About 90% of the cosmetics market in China is controlled by foreign brands. L’Oreal, Procter & Gamble, Beiresdorf, Estée Lauder and Mary Kay, are the top 5 sales in this area. Procter & Gamble have a strong presence thanks on Chinese market thanks to their leading brand Olay (yùlányóu玉兰油). L’Oreal, the world’s largest cosmetics company is still up growing in the Chinese market. Since the integration of Chinese traditional plants in their lotions, L’Oreal has succeeded in this market in China. Moreover, the brand is most attentive to its Chinese consumers always looking for ways to improve its products according to the needs of its customers.
Others cosmetics brands in China
Chinese beauty brands account for only 10% of the total market. Korean brands have introduced the Chinese market by selling their own brands, but also as concepts producers or suppliers. Chinese brands just focusing on marketing, have become dependent on these Korean suppliers. As for Japanese brands, they have been for a long time established in China with top brand Shiseido.
Chinese high-range cosmetics
The cosmetics market is in full growth and this one isn’t ready to stop. However, the offer of high standing capacity is not enough exploited. Indeed, the Chinese don’t see any more the cosmetics like products booked by an elite, but rather like a consumer goods. The future new coming foreign brands should try to enter the Chinese market as high-end beauty brand because the demand for products of this range will never stop and price range is quite small
Moreover, the Chinese consumers are captivated by products coming from the west and by high-range products. They will not hesitate to pay more to have a product of a particular brand. Indeed, to have a cosmetic product from a luxury brand allows the Chinese to show their wealth. A thing which they are particularly fond of.
Chinese consumers of cosmetics
Chinese consumers are increasingly concerned about their skin and their image. With increasingly abundant pollution in China, they search products being able to protect their skin. Moreover, with rising income, they don’t skimp in purchases expense to have clear skin. While the skin care segment share is 40% in China, it is only 30% in the rest of the world.
French Brands still ahead of the game in China
The Chinese consumers are fond of French cosmetics brands. The Chinese have a positive image of France, regarding it as the country of elegance and class thanks to its famous cosmetics and fashion brands. The French cosmetics brands are synonymous of quality in the whole world. In China, the labels “made in France” are put ahead to attract the attention of the Chinese consumers.
The Chinese distribution of cosmetics products
Cosmetics products are mostly distributed in specialized stores, retailers and via the Internet. E-commerce is growing in China. More and more brands are selling theirs cosmetics online. Chinese is the most connected country in the world. The Internet is an accessory in China. The Chinese people are always connected. China counts more than 600 million web surfer. The Chinese use theInternet via their computers, tablet and more largely with their smartphones whatever where they are. They go through these media for, initially search information on a product thanks to the comments and opinions of their peers or key opinion leaders, before carrying out their purchases. The Chinese consumers can spend enormoustime to search opinion on a cosmetic product before buying it.
The Community platform Kimiss, dedicated to the cosmetic products is very popular to the Chinese consumers. Just as Meilishuo, an online shopping guide gives also information tothe Chinese on their cosmetic products. The Chinese consumers buy more online than in offline. In 2013, the online cosmetic product sales represented 7 billion euros, according to the investigations of iResearch. The most known online cosmetics product websites are Jumei and Lefeng. However, we can quote Taobao, Tmall, Jingdon or Amazon.
The Chinese cosmetic market has a lot of untapped potential
The cosmetics market in China is still growing at full speed and it’s not ready to stop. SO you’re ready to run to China and start your business there? Well you’d better hold your horses and think about how to properly do that. Chinese are pretty much online addicts with a whopping 634 million internet users. Needless to say, that is where you need to be.
- Build yourself good brand awareness in China. No brand awareness means that you don’t exist in the Chinese business world.
- Knowing the right distribution channels for your brand*
- Have a clear brand positioning, a strong identity
- Be active on digital platforms
- Teach your customers how to use your products well