How to adjust your cosmetic products in the luxury segment in China

Daxue Consulting carried out various projects in the cosmetics industry, and research has shown that more and more new brands of different origin are emerging on the market. However, Hu Yuwan, project manager at Daxue Consulting, stresses that international brands are still the primary influencers when it comes to luxury cosmetic products, whereas in the middle and premium segment, Japanese and Korean brands are in favor. She explains, “Chinese consumers are willing to try new products and brands. When it comes to skincare and make-up, they are very open-minded.The market is becoming increasingly competitive, with a high speed of novelties.” One more reason to conduct proper market research to match the consumers’ preferences and expectations and to gain or obtain a competitive advantage.

The client’s goal: match cosmetic products in the luxury segment in China to its consumers

Daxue Consulting’s client, a premium cosmetic brand operating internationally, approached our research team to gain a thorough understanding of cosmetic products in the luxury segment in China. The objective to adapt their products according to their targeted consumers’ preferences encompassed investigating Chinese women’s motivation, their buying behavior, and expectations towards skincare.

Daxue utilizes an efficient and customized methodology to gain key consumer insights

The research team prepared a tailor-made project with different focus group discussionsto answer the client’s questions. At first, the consultants started recruiting suitable participants for both kinds of groups: users of the brand as well as users of its competing brand. Daxue Consulting uses large panels arisen by many years of experience which the researchers additionally screen to ensure the targeted profile such as age, gender, income, or province. After designing the guidelines as well as briefing and training the assistants, Daxue organized, moderated, and analyzed the discussions which included, for instance, the following aspects:

• Skin problems, daily routines, and motivations to use the respective skincare, such as whitening, which is one of the top reasons
• Purchasing criteria and expectations towards the cosmetic products in the luxury segment in China
• Strength and weaknesses of the client’s and competitors’ products with regards to features, packaging, color, etc.
• Overall impression of and associations with the brands and their most attractive offers, elements, and products

Hu Yuwan stresses three important aspects to consider: trust towards the general quality of the products (where international brands outperform local counterparts), ingredients (natural vs. chemical), and effects – the final results.

Daxue’s comprehensive reports facilitate final decision-making processes

As all focus group discussions are audio and video recorded, the research team provided the client with the findings along with the transcript. Daxue Consulting could deliver key consumer insights concerning cosmetic products in the luxury segment in China. The consultants also recommended must-have’s and must not’s with regards to the features of the product as well as the composition of the offer. Thus, the client was able to adjust their luxury cosmetic product line to better correspond with the consumers’ needs and wants.

See also:

Sensory Evaluation of Skincare Products in China

Market trend of the cosmetic industry in China

What can luxury brands do to capture Chinese consumers’ interest?

Cosmetics Regulations in China: 7 Steps to Get your Product Approved

Top Foreign Cosmetic Brands in China

French cosmetics and China: A faltering love story?

Our market research services