2022
0
China Beauty in Lower Tier Cities Market Report 2022
2023-02-28T03:01:15+00:00
OX1103083
3695
160857
[{"name":"Beauty and Personal Care","url":"https:\/\/store.mintel.com\/industries\/beauty-personal-care"}]
Report
en_GB
“The indifference of consumers in lower tier cities to the concept of ‘affordable alternatives’ reflects the importance of innovation in product efficacy. In the era of ‘efficacy is king’, this…

China Beauty in Lower Tier Cities Market Report 2022

£ 3,695 (Excl.Tax)

Report Summary

“The indifference of consumers in lower tier cities to the concept of ‘affordable alternatives’ reflects the importance of innovation in product efficacy. In the era of ‘efficacy is king’, this has revealed the direction for brands to focus on. Domestic and niche brands have the potential to emerge thanks to their cost-effectiveness and functional innovation.

The transparency and ease of access to information has made it possible for consumers in lower tier cities to freely gather advice from real consumers who are in tune with their situation and needs, without being limited by ‘authority’ and ‘right to speak’. They have a more sophisticated and holistic understanding of ‘beauty’, which will drive brands to explore more deeply in terms of value in order to win the hearts and minds of consumers. At the same time, strengthening investment in channels with beauty attributes and continuously improving the immersive ambience of offline channels will be the efforts that brands need to make in terms of their channel development.”

– Yali Jiang, Associate Director

Key issues covered in this Report:

  • Brand appeal: a sense of reassurance is both a rational and emotional effect
  • Anxiety over appearance and aesthetic attitudes: accepting diverse aesthetics and not rejecting cosmetic surgeries
  • Information for reference: subtle content input and output
  • Purchase channels: significant price advantage online and increased awareness of offline experience

Table of Contents

  1. Overview

    • What you need to know
      • Key issues covered in this Report
        • Objective and methodology
          • Quantitative research methodology
            • Figure 1: The sample structure for each city is as follows:
          • Qualitative research methodology
            • Figure 2: Interviewed cities in the qualitative research
            • Figure 3: Profiles of respondents to the qualitative research
        • Executive Summary

            • The market
              • Mid-late stage urbanisation spawns new challenges and opportunities for industrial structure development in lower tier cities
                • Figure 4: GDP sector compositions, by city tier, 2018-20
              • COVID-19 outbreaks affect the consumption environment in lower tier cities more greatly than tier 1 cities
                • Figure 5: Total retail sales and year-on-year growth rate of consumer goods, by city tier, 2018-20
              • Lower tier city consumers tend towards conservative consumption behaviours despite limited immediate impact of the outbreak
                • Confidence in financial situation rebound steady in lower tier cities but will be indirectly affected by tier 1 and 2 cities
                  • Figure 6: Confidence in improving future finances – Very confident/somewhat confident, by city tier, 2020-22
                • The consumer
                  • Brand appeal: A sense of reassurance is both a rational and emotional effect
                    • Figure 7: Attitudes towards domestic BPC brands, 2022
                  • Anxiety over appearance and aesthetic attitudes: accepting diverse aesthetics and not rejecting cosmetic surgeries
                    • Figure 8: Important attributes of being beautiful, 2022
                  • Information for reference: subtle content input and output
                      • Figure 9: Preferred types of beauty influencers – Selected items, by age, 2021
                    • Purchase channels: significant price advantage online and increased awareness of offline experience
                      • Figure 10: Usage of online channels for BPC products – Selected items, by age, 2021
                    • What we think
                    • Introduction to Lower Tier Cities in China

                        • Mid-late stage urbanisation spawns new challenges and opportunities for industrial structure development in lower tier cities
                          • Figure 11: GDP sector compositions, by city tier, 2018-20
                        • COVID-19 outbreaks affect the consumption environment in lower tier cities more greatly than tier 1 cities
                          • Figure 12: Total retail sales and year-on-year growth rate of consumer goods, by city tier, 2018-20
                        • Real income growth slowing down in lower tier cities
                          • Figure 13: Per capita annual salary, by city tier, 2018-20
                          • Figure 14: Family structure of respondents, by city tier, 2019-June 2022
                      • Market Factors

                        • Lower tier city consumers tend towards conservative consumption behaviours despite limited immediate impact of the outbreak
                          • Figure 15: Impact of COVID-19, by city tier, 2022
                          • Figure 16: COVID-related actions in future, by city tier, 2020 vs 2022
                        • Confidence in financial situation rebound steady in lower tier cities but will be indirectly affected by tier 1 and 2 cities
                          • Figure 17: Confidence in improving future finances – Very confident/somewhat confident, by city tier, 2020-22
                        • Beauty consumption in lower tier cities tends to be more conservative: The spending intention on basic skincare products is more prevalent than advanced skincare and colour cosmetics
                          • Figure 18: Willingness to buy BPC products/services after the outbreak, 2022
                      • Brand appeal: A Sense of Reassurance is both a Rational and Emotional Effect

                        • Big brands are synonymous with safety and trust in ingredients
                          • Figure 19: Prestigious, well-known brands – Interview excerpts, 2022
                        • Innovations instead of cheaper alternatives
                          • Figure 20: Concept of cheaper alternatives – Interview excerpts, 2022
                          • Figure 21: Niche/domestic brands – Interview excerpts, 2022
                        • The image of domestic brands in terms of quality has risen, but there is still room for improvement regarding innovation
                          • Figure 22: Attitudes towards domestic BPC brands, 2022
                        • ‘Co-creation with dermatologists and scientists’ becomes an innovative model for domestic function-driven skincare products
                          • Figure 23: Dr Yu/Biophyto-genesis’ co-creation with dermatologists and scientists, 2022
                      • Anxiety Over Appearance and Aesthetic Attitudes: Accepting Diverse Aesthetics and not Rejecting Cosmetic Surgeries

                        • Aesthetic standards in a comprehensive sense are rising, but aesthetic standards in a narrow sense are declining
                          • Figure 24: Changes in consumers’ aesthetics – Interview excerpts (positive comments), 2022
                          • Figure 25: Changes in consumers’ aesthetics – Interview excerpts (negative comments), 2022
                        • Anxiety over appearance does not increase with age; instead, consumers are looking for beauty that is genuine and positive from the inside out
                          • Figure 26: Anxiety over appearance – Interview excerpts, 2022
                          • Figure 27: Beauty brand spokesperson – Interview excerpts, 2022
                        • Light cosmetic surgery as a way to visualize the pursuit of ‘beauty’
                          • Figure 28: Understanding and experience in cosmetic surgery – Interview excerpts, 2022
                        • Temperament, well-cultivated and taste are in line with aesthetics
                          • Figure 29: Important attributes of being beautiful, 2022
                        • Cosmetic surgery and skincare are part of an integrated skincare solution
                          • Figure 30: Promotion campaign launched by Soyoung, 2022
                          • Figure 31: SkinCeuticals Holistic Skincare solution, 2022
                        • Professionals take on the role of brand spokespeople, leading the positivity of beauty
                          • Figure 32: Estée Lauder/Erno Laszlo hires representatives from professional fields as brand friends/ambassadors, 2022
                      • Information for Reference: Subtle Content Input and Output

                        • Real consumer bloggers are in the spotlight, while Xiaohongshu has become the main platform for recommendations
                          • Figure 33: Followed beauty bloggers – Interview excerpts, 2022
                          • Figure 34: Followed beauty information platform – Interview excerpts, 2022
                        • Focus on topic selection when sharing to avoid awkwardness
                          • Figure 35: Sharing information on beauty products – Interview excerpts, 2022
                          • Figure 36: The focus of information sharing on beauty products – Interview excerpts, 2022
                        • Popularity and professionalism are still the apparent consciousness in rational choice
                          • Figure 37: Preferred types of beauty influencers – Selected items, by age, 2021
                        • Diverse beauty bloggers and professional consumers form a marketing matrix
                          • Figure 38: Drunk Elephant diversifies its use of beauty bloggers for anti-ageing themed live streaming campaign, 2022
                      • Purchase Channels: Significant Price Advantage Online and Increased Awareness of Offline Experience

                        • The price and convenience advantages of ecommerce platforms are significant, but purchase intentions via live streaming are low
                          • Figure 39: Online purchase channels for beauty products – Interview excerpts, 2022
                          • Figure 40: Beauty live-streaming anchors – Interview excerpts, 2022
                        • Offline counters need to keep up with the times and provide ‘value of atmosphere’
                          • Figure 41: Offline beauty product purchase channels – Interview excerpts, 2022
                          • Figure 42: Example of To Summer/DOCUMENTS offline stores, 2021
                        • Comprehensive shopping websites are strong in capturing beauty consumers in lower tier cities at this stage
                          • Figure 43: Usage of online channels for beauty and personal care products – Selected items, by age, 2021
                        • Interest-based ecommerce platforms continue to strengthen their beauty attributes, aiming to convert huge traffic into business
                          • Figure 44: Douyin D-Beauty offline promotional campaign, 2021
                          • Figure 45: Douyin beauty brands cross-category promotion campaign, 2022
                      • Appendix

                        • Abbreviations
                          • Interviewees’ photos

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