“The China facial skincare market is evolving fast with enhanced level of competition and consumer sophistication. Consumers want multi-benefit products that fit into their multi-tasking lifestyles, they also want specifically designed products for certain problems. So the next question is “When”?
Given consumers’ repertoire behaviour, there is a high possibility they use several products at the same time or switch brands very often. Companies with multiple brand portfolios can maximise sales by driving specially targeted products through key seasonal associations such as summer, winter or high pollution days, while maintaining ongoing campaigns promoting the all-in-one “hero” product for everyday use. This strategy will maximise sales by driving consumer demand for both types of product throughout the year.”
- Wenwen Chen, Research Analyst
This report looks at the following issues:
- Solid skincare regime and repertoire behaviour
- Forces behind the repertoire behaviour
- An holistic approach
- I want it all
Facial skincare retain their high penetration thanks to the rising personal income and importance placed on maintaining an attractive appearance. The market was valued at RMB 70.8 billion by the end of 2013. The market is evolving fast with enhanced level of competition and consumer sophistication. Mintel estimates that the facial skincare market will be worth RMB78 billion by the end of 2014.
Despite intensified market competition and growing consumer sophistication, prospects for growth are still promising. The main forces behind growth are the rising number of middle income households, the e-commerce revolution powering consumption, particularly in less developed areas, and new product development opportunities based on different seasons and extreme environments. In addition, the strong growth prospects of the anti-ageing and facial mask segments will also underpin growth.
Product developments in the category focus on harnessing a younger population’s interest in maintaining an attractive appearance with a small face with a ‘V-shaped’ chin and jawline. To capitalise on the V-shaped face trend, major cosmetic brands are exploring this opportunity with their latest high-tech wonders. In addition, facial mask, particularly peel mask continues their domination of product innovation.