The performance of premium beauty and personal care brands used to be driven mainly by tourists. However, with the delayed return of tourist flows due to COVID-19 and the shifted consumer landscape, brands had to strategise to appeal to local consumers and capture their spending power in order to survive, due to increasing uncertainty as to when tourists would return.
During the pandemic, the consumer landscape in Hong Kong therefore shifted from tourist-driven to focus on local consumers. Compared with tourists, local consumers are more driven by value for money, with a longer decision-making curve.
Luxury brands are keen to dive into beauty and personal care and explore these traffic-building products with more accessible price points to attract a wider audience of consumers with lower spending power. It is observed that luxury brands tend to first launch fragrances, as these are very sensual products and have less regulation and fewer potential side-effects, and are emblematic of a brand’s image and values.
In 2021, more premium brands captured local consumption power through providing discounts and value for money sets. However, the current strategy of quick wins to generate cash and survive poses a risk in the long-term for these brands, of losing customers once they stop providing discounts and go back to selling at full price, as consumers get used to the lower prices of these products.
Despite the need to wear masks during the pandemic, fragrances saw a return to growth in 2021, especially for niche premium fragrance brands. With the shift in consumer behaviour to use fragrance on a daily basis to showcase the user’s personality, the category is expected to see continuous growth going forward.
As the pandemic calms down, and especially in the second half of 2022, after the impact of the fifth wave of COVID-19, it is expected that consumers will be ready to return to physical stores for some mood-uplifting shopping. Over 60% of respondents in Hong Kong agree that they extensively research the products and services they consume, according to Euromonitor International’s Voice of the Consumer: Lifestyles Survey in 2022.
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Understand the latest market trends and future growth opportunities for the Premium Beauty and Personal Care industry in Hong Kong, China with research from Euromonitor International's team of in-country analysts – experts by industry and geographic specialisation.
Key trends are clearly and succinctly summarised alongside the most current research data available. Understand and assess competitive threats and plan corporate strategy with our qualitative analysis, insight and confident growth projections.
If you're in the Premium Beauty and Personal Care industry in Hong Kong, China, our research will help you to make informed, intelligent decisions; to recognise and profit from opportunity, or to offer resilience amidst market uncertainty.
Premium Beauty and Personal Care
This is the aggregation of premium colour cosmetics, fragrances, deodorants, skin care, sun care, baby and child-specific products, bath and shower and hair care.
See All of Our DefinitionsThis report originates from Passport, our Premium Beauty and Personal Care research and analysis database.
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