Sorry for interrupting, this website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Learn more
Accept & Close

Beauty Retailers - China - February 2013

“Growth in beauty retailer sales is being driven mainly by people’s growing demand for beauty cosmetics and increasing consumer spending power. The rapid growth of the Chinese middle class has driven growth of the cosmetics retail market. Urbanisation, a prosperous commercial real estate industry, market segmentation and multi-channel growth models for beauty retail will increase coverage and penetration of products and will drive growth of beauty retail sales.”

– Mao Wei, Senior Research Analyst

In this report, we answer the key questions:

  • What is the current state of beauty retailers in China and what are the growth trends, drivers and barriers?
  • How do consumers behave and what are their attitudes to baked goods?
  • What are the key factors in operating a beauty retailer?
  • What opportunities lies in competition between beauty retailers and online and supermarket channels.

 

Report Introduction:

Beauty retailers in China grew at a CAGR of 14.5% from 2007-2012. Value sales grew to RMB 60 billion in 2011, up from RMB 33.6 billion in 2007. Value sales are expected to reach RMB 66 billion in 2012. Higher living standards and the increasing influence of Western culture and images are contributing to growing demand. Growth in beauty retailer sales is being driven mainly by people’s growing demand for beauty cosmetics and increasing consumer spending power. The rapid growth of the Chinese middle class has driven growth of the cosmetics retail market. Urbanisation, a prosperous commercial real estate industry, market segmentation and multi-channel growth models for beauty retail will increase coverage and penetration of products and will drive growth of beauty retail sales. Watson, Gialen and Sephora have grown rapidly in recent years, becoming market leaders by differentiating their brands, brands and product mix, and expanding distribution and regional spread.

The beauty and personal care retail markets of tier one cities are saturated. Future growth will come from the rapid development of tier two cities and the growth of tier three and four cities. Domestic specialist store retailers have a regional advantage in lower tier cities. They will be an effective channel for retailers to expand their market. Retailers will be able to differentiate themselves by offering information and advice, superior product experiences, improving shopping ambience, innovating in value-added services; and enhancing brand experience by strengthening brand ethos. Product mix will continue to be key to competitiveness.

 

Liqueurs - UK - January 2012

Take a look inside a sample report

Mintel’s consumer reports deliver insight and expert analysis into key consumer trends and behaviour in your marketplace, in addition to an overview of the market data and key brands. Mintel’s consumer reports provide you with easily digestible information to guide your future innovation and move your business forward.

Download now

 

What you get

What's included

Why buy from us?

Succeed

Our reports will provide you with market data, consumer research and competitive intelligence to succeed in your market.

Instant Access

Buy now and you'll have instant access to the information you need to make the right decisions.

Opportunities

Find out what's next in the markets that matter to you: where opportunities lie and what challenges you will face.

Trusted

A business Superbrand, Mintel is a source you can trust. We have been defining and refining the Market Intelligence mix since 1972.

Table of contents

  1. Introduction

      • Definition
        • Report structure
          • Methodology
          • Executive Summary

            • The market
              • Figure 1: Forecast - value sales of beauty retailers in China (value sales), 2007-17
              • Figure 2: Forecast - beauty retailer market in China (store numbers), 2007-17
            • Companies and brands
              • Figure 3: Main brands, by store numbers and value sales, 2012
            • The consumer
              • Frequency of use and core consumers
                • Figure 4: Frequency of purchasing products from beauty retailers, December 2012
              • Occasions of visiting beauty retailers
                • Selecting beauty product retail stores: important factors
                  • Main product categories bought at beauty retailers
                    • Key issues
                      • Brand experiences that focus on product testing and in-store consultation can be a competitive advantage for beauty retailers
                        • Driving sales growth by optimising product categories, brands and product mix
                          • Using specialist cosmetic retailers to expand in lower tier cities
                          • The Market

                            • Key points
                              • Market size
                                • Figure 5: Beauty retail market in China, 2007-12
                              • Facial skincare dominates sales
                                • Figure 6: Beauty and personal care market in China, 2007-2011, (RMB mn)
                              • Market drivers
                                • Growth in beauty retailer sales is being driven mainly by people’s growing demand for beauty cosmetics and increasing consumer spending power
                                  • The rapid growth of the Chinese middle class is also driving growth in the cosmetics retail market
                                    • Figure 7: Discretionary spending, April 2012
                                  • Improved infrastructure has created new opportunities for beauty retailers
                                    • Multinational brands have driven growth
                                      • New formats and channels offer consumers greater choice
                                        • Market challenges
                                          • Cultural barriers
                                            • Demographic challenges
                                              • Figure 8: Usage frequency of make-up and colour cosmetics products, by monthly personal income, May 2012
                                            • Concerns over product safety could hold back the market
                                              • Regional variation makes expansion difficult
                                                • A lack of R&D spend restricts innovation
                                                  • Rising costs are putting pressure on retailer margins
                                                    • Competitive environment
                                                      • Figure 9: Beauty retail channels market share 2005-10
                                                      • Figure 10: Characteristics of beauty retail channels
                                                    • Health and beauty stores
                                                      • Specialist cosmetic retailers
                                                        • Brand retailers (including cosmetic and cosmeceutical brands)
                                                          • Supermarkets and online sales present the greatest threat to beauty retailers
                                                            • The forecast
                                                              • Figure 11: Forecast - value sales of beauty retailers in China (value sales), 2007-17
                                                              • Figure 12: Forecast - stores numbers of beauty retailers in China (store numbers), 2007-17
                                                          • Companies and Brands

                                                            • Key points
                                                              • Brand market share
                                                                • Figure 13: Main brands, by store numbers and value sales
                                                              • Main brands
                                                                • Health and beauty stores
                                                                  • Guangzhou Watson’s Personal Care Stores Limited (Watson’s)
                                                                    • Mannings Guangdong Retail Company Limited (Mannings)
                                                                      • Specialist cosmetic retailers
                                                                        • Sephora
                                                                          • Guangzhou Gialen Cosmetics Co., Ltd (Gialen)
                                                                            • Sasa
                                                                              • Vinistyle
                                                                                • Brand stores
                                                                                  • Avon
                                                                                    • Herborist
                                                                                    • The Consumer

                                                                                      • Key points
                                                                                        • Frequency of visiting beauty retailers
                                                                                            • Figure 14: Frequency of purchasing products from beauty retailers, December 2012
                                                                                          • Beauty retail stores: core consumers
                                                                                            • Figure 15: Attitudes towards shopping for beauty products from beauty retailers, December 2012
                                                                                          • Occasions for visiting beauty retailers
                                                                                              • Figure 16: Occasions of going to beauty retailers, December 2012
                                                                                            • Selecting beauty retailers: important factors
                                                                                                • Figure 17: Important factors when selecting a beauty retailer, December 2012
                                                                                              • Beauty retail stores: brand loyalty
                                                                                                • Watson’s
                                                                                                  • Figure 18: Watson’s brand loyalty (%), December 2012
                                                                                                • Mannings
                                                                                                  • Figure 19: Mannings brand loyalty (%), December 2012
                                                                                                • Sephora
                                                                                                  • Figure 20: Sephora brand loyalty (%), December 2012
                                                                                                • Sasa
                                                                                                  • Figure 21: Sasa brand loyalty (%), December 2012
                                                                                                • Gialen
                                                                                                  • Figure 22: Gialen brand loyalty (%), December 2012
                                                                                                • Avon
                                                                                                  • Figure 23: Avon brand loyalty (%), December 2012
                                                                                                • Vinistyle
                                                                                                  • Figure 24: Vinistyle brand loyalty (%), December 2012
                                                                                                • Ayaya
                                                                                                  • Figure 25: Ayaya brand loyalty (%), December 2012
                                                                                                • OMEY
                                                                                                  • Figure 26: OMEY brand loyalty (%), December 2012
                                                                                                • Main product categories bought at beauty retailers
                                                                                                    • Figure 27: Items bought from beauty retailers in the past 6 months, December 2012
                                                                                                  • Important factors in choosing beauty products
                                                                                                      • Figure 28: Important factors when selecting beauty products, December 2012
                                                                                                    • Attitudes towards shopping for beauty products from beauty retailers
                                                                                                        • Figure 29: Attitudes towards shopping for beauty products from beauty retailers, December 2012
                                                                                                    • Building Stronger Brand Experiences

                                                                                                      • Key points
                                                                                                        • Beauty retailers are focusing more and more on product testing and in-store consultation
                                                                                                          • Brand experience can help retailers differentiate
                                                                                                            • Figure 30: Attitudes towards skin care products, May 2012
                                                                                                            • Figure 31: Important factors when selecting beauty products, December 2012
                                                                                                            • Figure 32: Attitudes towards shopping for beauty products from beauty retailers, December 2012
                                                                                                          • The retail environment can help educate consumers
                                                                                                            • Figure 33: Attitudes towards cosmetics, 2012
                                                                                                            • Figure 34: Attitudes towards shopping for beauty products from beauty retailers, December 2012
                                                                                                          • Providing product trials without bricks-and-mortar outlets
                                                                                                            • Enhancing brand experience by providing value-added services
                                                                                                              • Figure 35: Occasions of going to beauty retailers, by age and monthly personal income, China, April 2012
                                                                                                            • Integrating in-store experiences, social media and company websites
                                                                                                              • The advantages of offering a wider range of services
                                                                                                                • Building brand experience through store design and ambiance
                                                                                                                  • Increasing brand engagement through brand ethos
                                                                                                                    • What this means
                                                                                                                    • Driving Sales Growth by Optimising Product Categories, Brands and Product Mix

                                                                                                                      • Issues at a glance
                                                                                                                        • Brand offering: retailers need to consider major categories and smaller but high-growth categories
                                                                                                                          • Figure 36: Market size for beauty and personal care products in China, 2007-11
                                                                                                                        • Unique own-brands and products: an important draw for consumers
                                                                                                                          • Figure 37: Important factors when selecting a beauty retailer, December 2012
                                                                                                                          • Figure 38: Attitudes towards shopping for beauty products from beauty retailers, December 2012
                                                                                                                          • Figure 39: Proportion of private label product launches, 2008-13
                                                                                                                        • Facial skincare: new products tap into segmented demand and drive sales
                                                                                                                          • Figure 40: New product claims in the skincare market, 2008-13
                                                                                                                        • The growth of natural ingredients
                                                                                                                          • Figure 41: Important factors when selecting beauty products, December 2012
                                                                                                                          • Figure 42: Agreement with the statement “I tend to buy products with all-natural ingredients”, May 2012
                                                                                                                        • Packaging innovation can help drive sales in beauty retailers
                                                                                                                          • Figure 43: Attitudes towards cosmetic packaging, by type of product, May 2012
                                                                                                                        • Men’s toiletries: room for growth
                                                                                                                          • Figure 44: Frequency of using men’s toiletries products, July 2012
                                                                                                                          • Figure 45: Attitudes towards the range of male beauty products, December 2012
                                                                                                                          • Figure 46: Place of buying men’s toiletries, July 2012
                                                                                                                        • Beauty products gifting not yet fully explored/personalised gifts can drive sales
                                                                                                                          • Figure 47: Attitudes towards shopping for beauty products from beauty retailers, December 2012
                                                                                                                        • What this means
                                                                                                                        • Using Cosmetic Specialist Retailers to Expand in Lower Tier Cities

                                                                                                                          • Key points
                                                                                                                            • Rapid growth of specialist cosmetic stores due to growing demand for beauty products in tier two and three cities
                                                                                                                              • Figure 48: Urban and rural population, GDP, and per capita income in 2010 in China
                                                                                                                              • Figure 49: CAGR of population, GDP and per-capita income, 2000-10 in China
                                                                                                                            • Regional growth of Chinese specialist cosmetic retailers
                                                                                                                              • Figure 50: Major health and beauty stores and specialist cosmetic stores, by coverage, city tier and store numbers
                                                                                                                              • Figure 51: Beauty retailers, by brand loyalty (%)
                                                                                                                            • Domestic specialist cosmetic retailers: overcoming limitations and achieving growth
                                                                                                                              • Figure 52: Important factors when selecting a beauty retailer, December 2012
                                                                                                                            • Chinese beauty brands breaking into the market through specialist cosmetic stores
                                                                                                                              • Figure 53: Brands of skincare purchased in past 12 months, May 2012
                                                                                                                            • Domestic brands need to allay fears over the quality of their product range
                                                                                                                              • Figure 54: Attitudes towards cosmetics, May 2012
                                                                                                                            • International brands can expand into tier two and three cities via domestic specialist cosmetic retailers
                                                                                                                              • Major brands can form partnerships with specialist retailers
                                                                                                                                • What this means
                                                                                                                                • Appendix – Frequency Of Purchases From Beauty Retailer

                                                                                                                                    • Figure 55: Frequency of purchase from beauty retailer, December 2012
                                                                                                                                    • Figure 56: Frequency of purchase from beauty retailer, December 2012
                                                                                                                                    • Figure 57: Occasions of visiting beauty retailer, by most popular frequency of purchase from beauty drug stores (Watson’s, Manning, etc), December 2012
                                                                                                                                    • Figure 58: Occasions of visiting beauty retailer, by next most popular frequency of purchase from beauty drug stores (Watson’s, Manning, etc), December 2012
                                                                                                                                    • Figure 59: Occasions of visiting beauty retailer, by most popular frequency of purchase from beauty retailers (Sephora etc), December 2012
                                                                                                                                    • Figure 60: Occasions of visiting beauty retailer, by next most popular frequency of purchase from beauty retailers (Sephora etc), December 2012
                                                                                                                                    • Figure 61: Occasions of visiting beauty retailer, by most popular frequency of purchase from perfumeries, December 2012
                                                                                                                                    • Figure 62: Occasions of visiting beauty retailer, by next most popular frequency of purchase from perfumeries, December 2012
                                                                                                                                    • Figure 63: Occasions of visiting beauty retailer, by most popular frequency of purchase from other beauty retailer, December 2012
                                                                                                                                    • Figure 64: Occasions of visiting beauty retailer, by next most popular frequency of purchase from other beauty retailer, December 2012
                                                                                                                                    • Figure 65: Most popular frequency of purchase from beauty drug stores (Watson’s, Manning, etc), by demographics, December 2012
                                                                                                                                    • Figure 66: Next most popular frequency of purchase from beauty drug stores (Watson’s, Manning, etc), by demographics, December 2012
                                                                                                                                    • Figure 67: Most popular frequency of purchase from beauty retailers (Sephora etc), by demographics, December 2012
                                                                                                                                    • Figure 68: Next most popular frequency of purchase from beauty retailers (Sephora etc), by demographics, December 2012
                                                                                                                                    • Figure 69: Most popular frequency of purchase from perfumeries, by demographics, December 2012
                                                                                                                                    • Figure 70: Next most popular frequency of purchase from perfumeries, by demographics, December 2012
                                                                                                                                    • Figure 71: Most popular frequency of purchase from other beauty retailer, by demographics, December 2012
                                                                                                                                    • Figure 72: Next most popular frequency of purchase from other beauty retailer, by demographics, December 2012
                                                                                                                                • Appendix – Occasions Of Visiting Beauty Retailer

                                                                                                                                    • Figure 73: Occasions of visiting beauty retailer, December 2012
                                                                                                                                • Appendix – Products Bought At A Beauty Retailer In Past 6 Months

                                                                                                                                    • Figure 74: Products bought at a beauty retailer in past 6 months, December 2012
                                                                                                                                    • Figure 75: Products bought at a beauty retailer in past 6 months, by most popular frequency of purchase from beauty drug stores (Watson’s, Manning, etc), December 2012
                                                                                                                                    • Figure 76: Products bought at a beauty retailer in past 6 months, by next most popular frequency of purchase from beauty drug stores (Watson’s, Manning, etc), December 2012
                                                                                                                                    • Figure 77: Products bought at a beauty retailer in past 6 months, by most popular frequency of purchase from beauty retailers (Sephora etc), December 2012
                                                                                                                                    • Figure 78: Products bought at a beauty retailer in past 6 months, by next most popular frequency of purchase from beauty retailers (Sephora etc), December 2012
                                                                                                                                    • Figure 79: Products bought at a beauty retailer in past 6 months, by most popular frequency of purchase from perfumeries, December 2012
                                                                                                                                    • Figure 80: Products bought at a beauty retailer in past 6 months, by next most popular frequency of purchase from perfumeries, December 2012
                                                                                                                                    • Figure 81: Products bought at a beauty retailer in past 6 months, by most popular frequency of purchase from other beauty retailer, December 2012
                                                                                                                                    • Figure 82: Products bought at a beauty retailer in past 6 months, by next most popular frequency of purchase from other beauty retailer, December 2012
                                                                                                                                    • Figure 83: Most popular products bought at a beauty retailer in past 6 months, by demographics, December 2012
                                                                                                                                    • Figure 84: Next most popular products bought at a beauty retailer in past 6 months, by demographics, December 2012
                                                                                                                                    • Figure 85: Other products bought at a beauty retailer in past 6 months, by demographics, December 2012
                                                                                                                                • Appendix – Most Important Factors Considered When Selecting A Beauty Retailer

                                                                                                                                    • Figure 86: Most important factors considered when selecting a beauty retailer, December 2012
                                                                                                                                    • Figure 87: Most important factors considered when selecting a beauty retailer, by most popular frequency of purchase from beauty drug stores (Watson’s, Manning, etc), December 2012
                                                                                                                                    • Figure 88: Most important factors considered when selecting a beauty retailer, by next most popular frequency of purchase from beauty drug stores (Watson’s, Manning, etc), December 2012
                                                                                                                                    • Figure 89: Most important factors considered when selecting a beauty retailer, by most popular frequency of purchase from beauty retailers (Sephora etc), December 2012
                                                                                                                                    • Figure 90: Most important factors considered when selecting a beauty retailer, by next most popular frequency of purchase from beauty retailers (Sephora etc), December 2012
                                                                                                                                    • Figure 91: Most important factors considered when selecting a beauty retailer, by most popular frequency of purchase from perfumeries, December 2012
                                                                                                                                    • Figure 92: Most important factors considered when selecting a beauty retailer, by next most popular frequency of purchase from perfumeries, December 2012
                                                                                                                                    • Figure 93: Most important factors considered when selecting a beauty retailer, by most popular frequency of purchase from other beauty retailer, December 2012
                                                                                                                                    • Figure 94: Most important factors considered when selecting a beauty retailer, by next most popular frequency of purchase from other beauty retailer, December 2012
                                                                                                                                • Appendix – Most Important Factors Considered When Buying Beauty Products

                                                                                                                                    • Figure 95: Most important factors considered when buying beauty products, December 2012
                                                                                                                                    • Figure 96: Most important factors considered when buying beauty products, by most popular products bought at a beauty retailer in past 6 months, December 2012
                                                                                                                                    • Figure 97: Most important factors considered when buying beauty products, by next most popular products bought at a beauty retailer in past 6 months, December 2012
                                                                                                                                    • Figure 98: Most important factors considered when buying beauty products, by other products bought at a beauty retailer in past 6 months, December 2012
                                                                                                                                    • Figure 99: Most important factors considered when buying beauty products, by demographics, December 2012
                                                                                                                                    • Figure 100: Second most important factors considered when buying beauty products, by demographics, December 2012
                                                                                                                                    • Figure 101: Third most important factors considered when buying beauty products, by demographics, December 2012
                                                                                                                                • Appendix – Beauty Retailers Visited In Past Six Months

                                                                                                                                    • Figure 102: Beauty retailers visited in past 6 months-Shanghai, December 2012
                                                                                                                                    • Figure 103: Beauty retailers visited in past 6 months-Beijing, December 2012
                                                                                                                                    • Figure 104: Beauty retailers visited in past 6 months-Guangzhou, December 2012
                                                                                                                                    • Figure 105: Beauty retailers visited in past 6 months-Chengdu, December 2012
                                                                                                                                    • Figure 106: Beauty retailers visited in past 6 months-Shenyang, December 2012
                                                                                                                                    • Figure 107: Beauty retailers visited in past 6 months-Xi’an, December 2012
                                                                                                                                    • Figure 108: Beauty retailers visited in past 6 months-Changsha, December 2012
                                                                                                                                    • Figure 109: Beauty retailers visited in past 6 months-Wuxi, December 2012
                                                                                                                                    • Figure 110: Base: 296 female internet users aged 20+ who have purchased in any beauty retailer
                                                                                                                                    • Figure 111: Beauty retailers visited in past 6 months-Qingdao, December 2012
                                                                                                                                • Appendix – Beauty Retailers Visited The Most Often

                                                                                                                                    • Figure 112: Beauty retailers visited the most often-Shanghai, December 2012
                                                                                                                                    • Figure 113: Beauty retailers visited the most often-Beijing, December 2012
                                                                                                                                    • Figure 114: Beauty retailers visited the most often-Guangzhou, December 2012
                                                                                                                                    • Figure 115: Beauty retailers visited the most often-Chengdu, December 2012
                                                                                                                                    • Figure 116: Beauty retailers visited the most often-Shenyang, December 2012
                                                                                                                                    • Figure 117: Beauty retailers visited the most often-Xi’an, December 2012
                                                                                                                                    • Figure 118: Beauty retailers visited the most often-Changsha, December 2012
                                                                                                                                    • Figure 119: Beauty retailers visited the most often-Wuxi, December 2012
                                                                                                                                    • Figure 120: Beauty retailers visited the most often-Wenzhou, December 2012
                                                                                                                                    • Figure 121: Beauty retailers visited the most often-Qingdao, December 2012
                                                                                                                                    • Figure 122: Most popular beauty retailers visited the most often, by region, by demographics, December 2012
                                                                                                                                    • Figure 123: Next most popular beauty retailers visited the most often, by region, by demographics, December 2012
                                                                                                                                • Appendix – Attitudes Towards Buying Beauty Products In Beauty Retailers

                                                                                                                                    • Figure 124: Attitudes towards buying beauty products in beauty retailers, December 2012
                                                                                                                                    • Figure 125: Agreement with the statements ‘I don’t really care where I buy beauty and personal care products’ and ‘I prefer to shop around for beauty and personal cares products that offer the best promotional offers’, by demographics, December 2012
                                                                                                                                    • Figure 126: Agreement with the statements ‘I prefer shops where I can use my loyalty card’ and ‘I like to see how products feel/smell before buying’, by demographics, December 2012
                                                                                                                                    • Figure 127: Agreement with the statements ‘I prefer to shop at beauty stores where staff are helpful and offer me advice’ and ‘My choice of beauty stores depends on whether I am buying for myself or for someone else’, by demographics, December 2012
                                                                                                                                    • Figure 128: Agreement with the statements ‘There are too few products for men’ and ‘Private label products are just as good as branded ones’, by demographics, December 2012
                                                                                                                                    • Figure 129: Agreement with the statements ‘I use the internet to research prices and/or product function before buying beauty products’ and ‘I like to try out new products and brands’, by demographics, December 2012
                                                                                                                                    • Figure 130: Agreement with the statements ‘I’d like to see more beauty retailers offering their own ranges ’ and ‘I prefer to shop at beauty stores as they tend to offer certain beauty brands that are not necessarily available elsewhere.’, by demographics, December 2012
                                                                                                                                    • Figure 131: Agreement with the statement ‘I prefer to shop online for beauty and personal care products’, by demographics, December 2012

                                                                                                                                Companies Covered

                                                                                                                                To learn more about the companies covered in this report please contact us.

                                                                                                                                Beauty Retailers - China - February 2013

                                                                                                                                £3,195.84 (Excl.Tax)