Growing income and awareness of personal appearance support the strong growth
Beauty and personal care maintained its strong current value growth in 2013, benefited by growing household income and rising awareness of personal appearance and wellbeing among Chinese consumers. Oral care, hair care and bath and shower, daily necessities in most personal hygiene routines, saw steady market demand, resulting in healthy value growth. Skin care, the largest category in value terms, also recorded robust growth, thanks to frequent new launches and consumers’ constant pursuit of looking fairer and younger.
More specifically targeted categories witness more robust growth
With growing consumer sophistication, more specifically targeted categories, such as baby and child-specific products and men’s grooming, experienced double-digit current value growth in 2013. More parents are choosing age-specific personal care products for their children in China, while more male consumers have started to accept gender-specific products to achieve better personal care. Women are still the major purchasers for both baby and child-specific products and men’s grooming at present.
Fiercer competition leads to the exit of Revlon and Garnier from China
In spite of the great market potential in beauty and personal care, competition has been increasingly fierce, particularly in the mass segment, where the majority of domestic players are present, competing with their extensive product portfolios and competitive pricing. As such, Revlon and Garnier announced their exit from the domestic market in late 2013 and early 2014, respectively, due to lacklustre performance. More attention has been put on the mid- and high-end market, where competition is less ferocious and profit margin is higher, with frequent new launches especially from multinationals.
Hypermarkets, department stores and internet retailing are the top three channels
Hypermarkets and department stores continue to be the top two leading distribution channels for beauty and personal care products in China, targeting mass and premium products, respectively. Internet retailing, albeit with a later debut in the market, has grown the fastest of all channels, to surpass direct selling to become the third most important distribution channel for beauty and personal care in China in 2013. Convenient home delivery services, easy comparison of products and competitive pricing, as well as manufacturers’ active engagement in this emerging channel have underpinned the robust growth of internet retailing for beauty and personal care in 2013.
Stronger forecast constant value CAGR is expected
Beauty and personal care market is expected to experience an even stronger constant value CAGR from 2013 to 2018 than that for the review period, mainly driven by solid market demand from the increasing number of consumers concerned about improving their appearance and maintaining youthful complexions even as they age. Rising disposable income will strongly underpin the premiumisation trend in the beauty and personal care market, which will also accelerate value growth momentum over the forecast period.
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The Beauty and Personal Care in China market research report includes:
- Analysis of key supply-side and demand trends
- Detailed segmentation of international and local products
- Historic volumes and values, company and brand market shares
- Five year forecasts of market trends and market growth
- Robust and transparent market research methodology, conducted in-country
Our market research reports answer questions such as:
- What is the market size of Beauty and Personal Care in China?
- What are the major brands in China?
- How are sales of mass versus premium beauty products evolving?
- What are the key shifts in retail channel distribution?
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This industry report originates from Passport, our Beauty and Personal Care market research database.