China Cosmetics Market

China Cosmetics Market

China Cosmetics Market

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As the world’s second largest cosmetics market, China market has reached 200 billion Yuan in 2011. Besides, it is also one of the fastest developing markets with a 15% annual growth.

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China Cosmetics Market Today

The data from National Bureau of Statistics of China also shows that the revenue of above-norm cosmetics enterprises has also reflected the trend:

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revenue of above-norm cosmetics companies in China

revenue of above-norm cosmetics companies in China

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So far, the market, especially the high-end market, has been mainly dominated by big foreign brands such as L’Oreal, NIVEA, Avon, OLAY and Shiseido. And now they are turning to occupy the lower market.

It means they have already gained favor of Chinese customers. In fact, over 80% of China cosmetics market is dominated by foreign brands.

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Trends

In today’s market, skin care and makeup are the major two sectors of this market. They both has occupied about half the market.
As to the development speed, medical cosmetics, children skin care and men’s skincare are the most interesting three sectors in the market.

Medical cosmetics

It’s estimated that the potential of the market will be more than 20 billion RMB. The annual growth rate is also supposed to reach 10%-20%.

Children skin care

Children skin care market is another potential market which is now lead by Johnson’s baby, Princefrog and Mentholatum. Among them, Johnson’s has occupied over 80% of the market and the rest 20% were shared by dozens of the other companies.

Men’s skincare

According to the estimation of Euromonitor, China men’s skincare market witnesses a 34% annual growth in 2011. And last year it also increased by 24.4%.
The size of the market has also reached 3.2 billion RMB and supposed to increase with the more acceptances from Chinese people, especially men. Another detail to notice is that, the demand for skin mask, sun block products is increasing which means Chinese men are caring more and more about their skin.

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Chinese buy cosmetics

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Foreign brand are popular

Although the scandals or bad news about foreign cosmetics brands coming out more and more recently, they are still enjoying most trust from their customers. The main reasons for them to choose a foreign brand are the BRAND and QUALITY.
As a result of the high price of most big brands, most their consumers are young or middle-aged female in big cities.

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E-commerce & Cosmetics

The fierce competition with big companies in traditional distribution channels has frightened many foreign companies.
But now, there has appeared a new solution for those companies: E-commerce. The turnover of E-commerce of cosmetics has increased by 67%, at 37.3 billion RMB in 2011 and it’s estimated to hit 57.7 billion RMB in the past 2012.

Source: iResearch

There are mainly tow kinds of e-commerce sites: professional cosmetics site, comprehensive sites and company online store such as Lancôme.

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lancome online store

lancome online store in Chinese

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The advantage of using the ecommerce site to generate your business is that you can reach your customers to save both the budget and the trouble of negotiation with numbers of supermarket, shopping mall or stores. Besides, for those companies who are not able to sell directly to small cities or rural area, ecommerce can even help them develop market there without spending money on distribution network there. All what you need to do is to promote your store to get a better user experience and more traffic.

See also case study on a leading ecommerce site

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SNS (social media for Cosmetics )

As a product whose sales depend on its reputation, cosmetic are also one of the products that demand more most budget on reputation control.
To control the reputation of your products, you need to know where Chinese people go to get information. If you control the source of information, you can successfully control the reputation.
And the key of this is SNS because Chinese cosmetics consumers, especially girls tend to look for and trust what other users or key opinion leaders speak about the product.
There are two kinds of SNS you need to care about: micro-blogging and professional SNS.

Micro-blogging

Micro-blogging, or Weibo in Chinese, engages hundreds of millions of users in China. Many people go there every day for information.
As DCCI study shows, most people will look for further information after they get the information from micro-blogging.

  • 51.87% of micro-bloggers will search the products they see on E-commerce sites;
  • 49.91% of them will go to the homepage of the brand;
  • Pictures and links in the posts will also be checked by 49.57% of the micro-bloggers.

What I suggest you need to build Social Media Integration for a Brand/product is to:

  1. Official Weibo account
  2. Realize the Design of the Weibo account
  3. Publish interesting content about the Brand
  4. Promote this account in different SNS platforms

Professional SNS

In China, cosmetics consumers have another place to go online to search for information which turns out to be professional cosmetics SNS sites.

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jumei iwom zone

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On those sites, you will find many people, mostly girls, quite professional in cosmetics and their comment and evaluation on the products are very important and influential to the others. And the information of the products is usually shown in a way of Pinterest does most of the time.
What you will need to do here is:

  1. Open official accounts on major SNS
  2. Monitoring the information on those sites
  3. Publishing interesting content about the brand
  4. Managing the community around your brand

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See also case study on a leading ecommerce site

 

Source: Hong Kong Trade Development Council, DCCI,  iResearch

If you have any questions for the article or want to developp your Cosmetics Brand in China, don’t hesitate to contact us for more information (see our case Study) or advice: marketingtochina[at]gmail.com

Written by Philip

Philip passionated about Marketing and Web, I like to share with my foreign friends my knowledge. I am a citizen of the world and my dream is to dicover the world. I really appreciate people who interact with my article, exchange different point of view.

15 Comments

  1. Jeff · February 16, 2013

    Hi Philip,

    Nice article. I’m living in Beijing where are you?

    Jeff

  2. Cosmetics in china, a strategic distribution | marketing to China · March 15, 2013

    […] are few developed in concerning the cosmetics in China. In this channel, products are referenced notably if the benefits margins are important.  Few […]

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    […] of foreign brands in fierce fight in this huge and rapid expanding cake. For several years, China cosmetics market has been keeping a growth around 15% […]

  4. sugas · May 14, 2013

    i want some skin care cosmetics details

  5. Impex Traders · June 8, 2013

    Dear sir,
    We are also business of cosmetics in pakistan so now we want buy some thing,s like skin Care,Hair Treatment and Hair Extention:
    Thank You :
    Best Regard:
    Jafar Khan

  6. Shan · June 8, 2013

    Hi, do u own a shop in China selling cosmetic brands and perfumes? Will u be keen to work together if I can supply you stocks?

  7. Estée Lauder, bases its future growth on perfumes and make-up | Marketing China · June 18, 2013

    […] the third market (after the United States and Japan) of cosmetics in the world (see more info here). Now, cosmetics are considered, by the Chinese, as staple commodities and no as goods […]

  8. Pioi · September 16, 2013

    Thank you for this article. Do you know if Russian brands are famous in Cosmetics Field ?

    I would like to export Special Products from Russia and sell it to China, mainly in Whitening

  9. Pom · September 16, 2013

    Many french cosmetics brands try to enter in China, but are blocked at the customs… Sorry .
    We can help them .
    Add me on facebook ;-)

  10. Neal Andrews · October 9, 2013

    Have a cosmeceutical skin care line with approvals in China. Would like to discuss with you…

  11. Cosmectics Group · April 23, 2014

    Thank you for this interesting article. Cosmetics in China is booming. What is interesting is … every body use to outsource their production in China, and now they try to sell it ?

  12. Dianna · May 8, 2014

    Hello,
    Thank you for this article, I really learn a lot with your website, very interesting to understand the cosmetics Market via such professional website. ;-)

  13. Que pensent les chinoises des cosmétiques "Made in France"? - Marketing en Chine | Marketing en Chine · September 24, 2014

    […] Pour plus d’informations, allez voir l’article sur le marché des cosmétiques en Chine : cosmetics China. […]

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