C-beauty brands outperformed the market in China in the last five years, particularly in skin care and colour cosmetics. Benefiting from strong digital capabilities and marketing strategies, C-beauty is winning younger consumers. However, the challenges facing C-beauty brands are how to build solid competitiveness for sustainable growth. Expansions of C-beauty brands to fragrances and overseas will bring them to compete with foreign brands in the broader market on an equal footing.
This report comes in PPT.
C-beauty brands have seen strong growth in beauty and personal care in China. Among the top 20 brands in colour cosmetics, the portion of the retail value of C-beauty brands doubled from 14% to 26% between 2017 and 2022. C-beauty brands like Winona, Proya, and Florasis thanks to their strong digital capabilities and the rising e-commerce penetration in China.
A group of factors has accelerated the boom in C-beauty brands in the market. A mature industry supply chain, changing consumer awareness, a highly developed digital landscape, the availability of sufficient talent, and government and capital market investment have contributed to the increase in the number and quality of C-beauty brands in China.
After rapid growth, a significant challenge for C-beauty brands is maintaining their performance and finding a second growth curve for a solid market position. C-beauty brands seek future growth in areas like R&D, brand value communication, and premiumisation.
Expansions of C-beauty brands to fragrances and overseas will bring them to compete with foreign brands in the broader market on an equal footing. However, the country-based label of beauty brands will gradually play a minor role when consumers purchase; only the products with substantive innovations will win the market.
This is the aggregation of baby and child-specific products, bath & shower, deodorants, hair care, colour cosmetics, men's grooming, oral hygiene, fragrances, skin care, depilatories and sun care. Black market sales and travel retail are excluded.See All of Our Definitions
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