Health and Beauty We examine the trends underlying the growth of the global marketplace in health, beauty and hygiene. Our analysts will point the way forward by highlighting critical innovations and behaviours that are driving industry evolution.

Beauty and Personal Care in Australia Sees Strong Demand from Chinese Consumers

10/30/2017
Tim Foulds Profile Picture
Tim Foulds Bio
Share:

Australia’s beauty and personal care market was supported by Chinese consumers, both local and international, who view Australian products with high regard. Chinese consumers are attracted to Australian products, not only in beauty and personal care but also in other industries including consumer health and packaged foods, which is due to the country’s clean and green reputation, strict regulations and quarantine control. Chinese consumers snapped up Australian-made beauty brands, particularly in skin care and bath and shower, with this trend supporting overall growth of the industry in 2016. Brands that resonate well with Chinese consumers are typically naturally positioned and feature natural ingredients.

Australian companies looked to capitalise on Chinese demand for Australian products, focusing on expanding their Chinese distribution as well as tailoring their products and retail stores to suit Chinese consumers. In 2016, chemist/pharmacy Amcal launched a Mandarin Chinese language version of its website, with the new store to ship orders from Australia to China. Australian online premium beauty retailer Adore Beauty opened a store on Chinese online platform Alibaba in 2016; however, the store was closed six months after opening, with the company to consider other channels to connect with Chinese consumers. Australian brand Goat Soap has become popular amongst Chinese consumers, with trade press reporting that the brand made AUD1 million in sales on China’s Singles’ day in 2016 through the company’s store on the Tmall platform.

Outlook

The demand for Australian products is not expected to wane, with Australian-made and -owned companies to maintain their strong reputations locally and abroad. Australian-made products are more trusted and perceived as higher quality, with consumers willing to pay a premium for Australian-made. Australian companies will continue to focus on their China strategies, with an increasing number of sales expected to occur in China direct to consumers through Chinese e-commerce sites Tmall and JD.com. An increasing number of Australian companies and retailers have opened their own sites through these channels, as they look to capitalise on the demand from Chinese consumers.

China provides promising export opportunities for Australian beauty and personal care companies, particularly given the challenging operating conditions in Australia with the high level of discounting activity. Natural skin care company BWX has seen success with its skin care brand Sukin, which has been performing strongly through drugstores/parapharmacies in Australia. The brand is a cruelty-free and vegan range featuring natural ingredients. BWX has been eyeing the Chinese market and has established Sukin flagship stores on online retailers JD.com and Tmall, as the company looks to increase brand awareness among Chinese consumers. Pental Products is also focusing on its China strategy through the export of its Australian-made Pental products, including its Country Life and Velvet soaps. The company has launched “The Australian Country Life” brand of goat’s milk soap for export to China, specifically tailored to this market.

Interested in more insights? Subscribe to our content

Latest Insights

In-Cosmetics Latin America

Euromonitor International 21 September 2022

Cosmoprof CBE ASEAN

Euromonitor International 14 September 2022

Semana de Mercado ABIHPEC

Euromonitor International 08 September 2022

Shop Our Reports

Competitor Strategies in Tissue and Hygiene

The combined effect of rising regional competition, lingering supply chain disruptions and growing consumer expectation for quality, value, convenience, and…

View Report

Tissue and Hygiene: Half-Year Update 2022

Euromonitor International updated the Tissue and Hygiene Forecast Model in August 2022, applying the latest macroeconomic consensus to review 2022-2026 category…

View Report

Voice of the Industry: Consumer Health 2022

This report highlights the results of Euromonitor’s Voice of the Industry: Consumer Health 2022 survey, alongside commentary and context from Euromonitor…

View Report
Passport Our premier global market research database with detailed data and analysis on industries, companies, economies and consumers. Track existing and future opportunities to support critical decision-making across all functions within your organisation Learn More