Premium Beauty and Personal Care in China

PROSPECTS

Robust double-digit value growth for premium beauty and personal care

The buoyant double-digit value growth of premium beauty and personal care in 2017 was backed up by consumers’ growing purchasing power and changed mindset. Millennials, unlike their parents or grandparents, are fond of premium products for their better quality and more fashionable style.

Premium colour cosmetics records the highest value growth

Premium colour cosmetics registered the strongest value growth in 2017, mainly due to the stellar performance of premium lip products. Lip products, the easiest to use or handle among all colour cosmetics products and, hence, becoming a must-have item for most female consumers in China, show the trend towards upgrading, as local consumers are seeking premium-quality products for better effect as well as for health, taking into consideration the fact that some of the lip product is consumed while eating or drinking.

Premium pharma beauty and personal care records vigorous growth

Premium pharma beauty and personal care recorded dynamic value growth in 2017 in China. Some pharma brands are quite active in beauty and personal care, represented by Avène, La Roche-Posay and Vichy, ranked in the top three places among all pharma brands in China.

COMPETITIVE LANDSCAPE

L’Oréal China holds pole position

L’Oréal China continued to lead premium beauty and personal care in 2017 mainly due to the robust performance of Lancôme, Yves Saint Laurent and La Roche-Posay. Apart from active and effective marketing through internet celebrity/influencer marketing, the company is penetrating lower-tier cities via internet retailing, where consumer demand for premium beauty and personal care is strong due to the lack of bricks-and-mortar stores in which to make purchases.

Estée Lauder contributes substantially to its company’s leading position

Flagship brand, Estée Lauder, contributed substantially to Estée Lauder (Shanghai) Commercial Co Ltd remaining the second largest player in premium beauty and personal care in 2017. In terms of anti-agers, most Chinese consumers tend to believe high-tech products – such as Estée Lauder Advanced Night Repair – are quite effective in maintaining youthfulness.

AmorePacific Cosmetics (Shanghai) Co Ltd loses value share

The tension between the Chinese and South Korean governments, due to the placement of Terminal High Altitude Area Defense (THAAD), has led to decline in bilateral trade, cross-border tourism etc. This translated into a decrease in value share for AmorePacific Cosmetics (Shanghai) Co Ltd in 2017, as the company specialises in sales of beauty and personal care products from Korea.

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