2021
0
China Beauty Retailing Market Report 2021
2021-04-30T04:12:43+01:00
OX1047399
3695
137137
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Report
en_GB
“Consumers are continuously shifting towards online in the wake of COVID-19, but the differential in the perceived quality of products and prices between online and offline channels are marked. Physical…

China Beauty Retailing Market Report 2021

£ 3,695 (Excl.Tax)

Report Summary

Providing the most comprehensive and up-to-date information and analysis of the China Beauty Retailing market, including the behaviours, preferences and habits of the consumer.

While the beauty retailing market within China was impacted during the first phase of the COVID-19 pandemic, the market quickly rebounded after the initial lockdown period. Since then value sales have risen steadily in 2020 to reach RMB 340 billion, with online specialist retailers taking some shares from traditional retailers.

Online ecommerce channels have received a much needed boost in 2020, thanks to the closure of many non-essential businesses and heavy restrictions on travel. While consumers prefer the competitive prices and wider product ranges from online platforms, they still value the quality and experience offered by physical stores.

This report covers the current state of the market as the pandemic subsides, as well as the future predictions for the market. Over the next five years the market is predicted to grow at a CAGR of 8.4%, reaching value sales of RMB 508.8 billion in 2025. In-store elements such as product demonstrations and ingredient knowledge will continue to drive footfall, while increased online engagement will make online channels increasingly popular.

Read on to discover more details or take a look at all of our China, Beauty, Personal Care and Toiletries market research.

Quickly understand

  • Provide immersive shopping experience.
  • What’s next for live e-commerce?
  • From ‘new retail’ to ‘smart beauty retail’.

Covered in this report

Beauty Channels: Chain retailers, cosmetology specialised retailers, brand speciality stores, independent beauty stores, brand counter at department stores and malls, supermarkets, hypermarkets, online channels.

Brands: Watsons, Sephora, Gialen, Mannings, T3C, HARMAY, NOISY, WOW COLOR, HR, JD AI, Gucci.

Expert analysis from a specialist in the field

Written by Vicky Zhou, a leading analyst in the Beauty & Personal Care sector, her extensive knowledge delivers in-depth commentary and analysis to highlight current trends and add expert context to the numbers.

Consumers are continuously shifting towards online in the wake of COVID-19, but the differential in the perceived quality of products and prices between online and offline channels are marked. Physical stores need an educational and experiential offering to connect with consumers, while online platforms need to team up with brand activities and become their partners. The development of live e-commerce should help the online channel to move beyond being solely associated with competitive pricing to a place of brand recognition.

Vicky Zhou
Research Analyst

Table of Contents

  1. Overview

    • What you need to know
      • Covered in this Report
        • Channels covered in this Report:
        • Executive Summary

            • The market
              • Figure 1: Best- and worst-case forecast of total value sales of beauty retailing, China, 2015-25
            • Companies and brands
              • Figure 2: Sales value, store number and sales per store of the top five beauty retailers, china, 2019-20
            • The consumer
              • Online channels adopted rapidly
                • Figure 3: Beauty/personal care products purchased in the last six months, January 2021
              • The multiples lead, while vertical channels play catch-up
                • Figure 4: Most often visited bricks-and-mortar stores in the last six months, January 2021
              • More than half of consumers use domestic comprehensive shopping websites as their primary online shopping channel
                • Figure 5: Most often visited online channels in the last six months, January 2021
              • Online and offline channels offer different attributes
                • Figure 6: Reasons for purchasing from physical stores or online in the last six months, January 2021
              • Consumers seek more product information in-store
                • Figure 7: In-store service desired for beauty/personal care products, January 2021
              • Fashion shows are the most welcomed in-store style
                • Figure 8: In-store styles desired for beauty/personal care products, January 2021
              • What we think
              • Issues and Insights

                • Provide immersive shopping experience
                  • The facts
                    • The implications
                      • Figure 9: Different store style of HARMAY, China
                    • What’s next for live e-commerce?
                      • The facts
                        • The implications
                          • Figure 10: HR Sanya duty-free pop-up store live streaming, China, 2020
                        • From ‘new retail’ to ‘smart beauty retail’
                          • The facts
                            • The implications
                              • Figure 11: JD AI skin test function, China, 2020
                              • Figure 12: Gucci AR fragrance on Snapchat, 2020
                          • The Market – Key Takeaways

                            • Double-digit growth rate in 2020
                              • COVID-19 accelerates the development of online channels and duty-free stores
                              • Market Size and Forecast

                                • Stable growth in a slower speed
                                  • Figure 13: Best- and worst-case forecast of total value sales of beauty retailing, China, 2015-25
                                • Offline channels continue developing
                                  • Figure 14: Store number of beauty retailer outlets, by segment, 2018-20
                              • Market Factors

                                • COVID-19 hinders visits to offline stores, while e-commerce makes up some loss
                                  • Duty-free stores offset blocked overseas shopping
                                    • Overseas retailers debuted in domestic market
                                      • More international brands enter China market via cross-border e-commerce
                                        • Figure 15: International brands enter in China market on Tmall Global, China, 2020
                                      • More regulation on live streaming e-commerce
                                      • Key Players – Key Takeaways

                                        • Key beauty retailers suffered, while new retailers developed
                                          • Provide more experiences in-store
                                          • Market Share

                                            • Traditional key beauty retailers struggling
                                              • Figure 16: Sales value, store number and sales per store of the top five beauty retailers, china, 2019-20
                                            • Innovative niche retailers more competitive
                                            • Competitive Strategies

                                              • Independent beauty brands build ‘concept store’ in offline
                                                • Figure 17: The Editions de Parfums Frédéric Malle store, Shanghai, 2020
                                              • Provide experience to keep consumers spending more time in-store
                                                • Increased integration of online and offline retail channels
                                                • Launch Activity and Innovation

                                                  • Digitalisation
                                                    • Build private community
                                                      • Beauty Delivery
                                                        • Link to art
                                                          • Figure 18: Sephora release conference art design, China, 2021
                                                        • Connect with consumers through 24h live
                                                          • Figure 19: MECCA LIVE, Australia, 2020
                                                      • The Consumer – Key Takeaways

                                                        • Online channels enjoyed rapid growth
                                                          • Regular supermarket/hypermarkets are still the first choice
                                                            • Shopping via live streaming/short video platforms increases
                                                              • Offline channels represent good quality in the eyes of the consumer, while online channels are closely associated with competitive prices
                                                                • Seeking out more product knowledge is a driver for physical stores
                                                                  • Aesthetic-related styles are preferred
                                                                  • Purchased Products

                                                                    • Online channels are catching up
                                                                      • Figure 20: Beauty/personal care products purchased in the last six months, January 2021
                                                                    • Online channels enjoy rapid growth
                                                                      • Figure 21: Change of channel used to purchase beauty/personal care products, 2021 vs 2018
                                                                    • Female, high earners and consumers in lower tier cities increased to purchase in stores
                                                                      • Figure 22: Change of purchasing beauty/personal care products in physical stores, by selected demographics, 2021 vs 2018
                                                                    • Consumers aged 25+ lean towards purchasing online
                                                                      • Figure 23: Change of purchasing beauty/personal care products online, by selected demographics, 2021 vs 2018
                                                                  • Most Visited Bricks-and-Mortar Stores

                                                                    • Regular supermarket/hypermarkets are first in mind, while health and beauty chain retailers are more chosen
                                                                      • Figure 24: Most often visited bricks-and-mortar stores in the last six months, January 2021
                                                                    • Beauty specialist retailers become slightly more popular today
                                                                      • Figure 25: Most often visited bricks-and-mortar stores in the last six months – first choice, 2020 vs 2021
                                                                    • Those in their 40s visit beauty specialist retailers; CVS attracts more 18-24s
                                                                      • Figure 26: Change of most often visited bricks-and-mortar stores in the last six months – first choice, by gender and age, 2021 vs 2020
                                                                  • Most Visited Online Stores

                                                                    • Domestic comprehensive shopping websites dominate online visits
                                                                      • Figure 27: Most often visited online channels in the last six months, January 2021
                                                                    • Live streaming/short video platforms stand out…
                                                                      • Figure 28: Change of most often visited online channels in the last six months, 2021 vs 2020
                                                                    • …more because of the contribution from younger consumers and low earners
                                                                      • Figure 29: Most often visited online channels in the last six months, – sum of top three of selecting ‘live streaming/short video platforms’, by age and monthly personal income. 2021 vs 2020
                                                                  • Important Factors

                                                                    • Offline for quality and experience, online for competitive prices
                                                                      • Figure 30: Reasons for purchasing from physical stores or online in the last six months, January 2021
                                                                    • Offline stores lose out to online channels on exhibiting the latest products
                                                                      • Middle-aged consumers and high earners have more diverse demands to purchase in-store…
                                                                        • Figure 31: Reasons for purchasing from physical stores in the last six months, by age, January 2021
                                                                        • Figure 32: Reasons for purchasing from physical stores in the last six months, by monthly personal income, January 2021
                                                                      • …and also online
                                                                        • Figure 33: Reasons for purchasing online in the last six months, by age, January 2021
                                                                        • Figure 34: Reasons for purchasing online in the last six months, by monthly personal income, January 2021
                                                                    • In-store Services

                                                                      • Education is the main demand in physical stores
                                                                        • Figure 35: In-store service desired for beauty/personal care products, January 2021
                                                                      • Women prefer product usage demonstrations, while men prefer self-shopping
                                                                        • Figure 36: In-store service desired for beauty/personal care products, by gender, January 2021
                                                                      • Personalised services appeal more to high earners
                                                                        • Figure 37: In-store service desired for beauty/personal care products, by monthly personal income, January 2021
                                                                    • In-store Experience

                                                                      • Fashion and art styles are preferred when choosing BPC products
                                                                        • Figure 38: In-store styles desired for beauty/personal care products, January 2021
                                                                      • Younger generation is particular interested in art gallery style, while less interested in SPA style
                                                                        • Figure 39: In-store styles desired for beauty/personal care products, by generation, January 2021
                                                                      • However, SPA style is attractive to affluent consumers
                                                                        • Figure 40: In-store styles desired for beauty/personal care products, by monthly personal income, January 2021
                                                                    • Meet the Mintropolitans

                                                                      • Offline means good quality and experience to MinTs, while online means convenience and wider choices
                                                                        • Figure 41: Reasons for purchasing from physical stores or online in the last six months – Mintropolitans, January 2021
                                                                      • Personal shopping service and latest trends attract MinTs more
                                                                        • Figure 42: In-store service desired for beauty/personal care products, by consumer classification, January 2021
                                                                    • Appendix – Market Size and Forecast

                                                                        • Figure 43: Total value sales of beauty retailing, china, 2015-25
                                                                    • Appendix – Methodology and Abbreviations

                                                                      • Methodology
                                                                        • Abbreviations

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