Skin Care in China

PROSPECTS

High-tech and customised products appeal to consumers

Skin diagnosis in department stores and beauty specialist stores helps consumers choose skin care best suited to their skin condition, which could translate into higher sales. High technology is also reflected in the ingredients or formula as well as the production of skin care, which may achieve better product efficacy.

Intensifying competition triggers industry players’ crossover from manufacturers to retailers

As the largest sector within beauty and personal care, skin care witnesses fierce competition due to the presence of many international and domestic players. To stay competitive, many industry players seek growth by crossing over from being retailers as a well as manufacturers.

New distribution mode emerges

Multibrand beauty specialist stores have emerged in China. Nature Collection, opened by LG Household & Health Care Ltd in Shanghai in January 2017, houses a number of mass-positioned brands from the company, including The Face Shop and Sooryehan.

COMPETITIVE LANDSCAPE

International brands lead premium skin care sales

International brands lead premium skin care sales while domestic players are strong in mass skin care. While mass skin care is far bigger in terms of value sales than premium skin care, overall skin care is led by multinational manufacturer, L’Oréal China, driven by its enriched product mix in premium skin care and the robust growth of the overall premium skin care sector.

Domestic brands perform better in mass skin care

Domestic brands performed better than their international counterparts in 2017, owing to their affordable pricing and consistent quality of their skin care offerings. Pechoin, from Shanghai Pehchaolin Daily Chemical Co Ltd, is one of the most successful skin care brands in China, ranked number one as of 2017 in terms of value sales.

Consumer-centric Japanese or Korean brands enjoy a loyal consumer base

Japanese or Korean skin care brands enjoy a loyal base of consumers in China, as locals believe that Japanese or Korean brands are more suitable to Chinese skin, thanks to having the same Asian origin. Compared with long-established Japanese brands, such as Shiseido and Pola, Korean brands adopt a fast fashion business model, with a consumer-centric philosophy in operation.

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