Table of Contents
Executive Summary
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- The market
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- Figure 1: Best- and worst-case forecast of total value sales of beauty retailing, China, 2014-24
- Companies and Brands
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- Figure 2: Sales value, store number and sales per store of the top five beauty retailers, China, 2018-19
- The Consumer
- Browse and shop at one stop
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- Figure 3: Beauty and personal care shopping methods in the last six months, December 2019
- Chain retailers continue to occupy the offline market
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- Figure 4: Most often visited bricks-and-mortar stores in the last six months, December 2019
- Domestic shopping website is the top place to buy online
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- Figure 5: Most often visited online stores in the last six months, December 2019
- Consumers are buying what they need from live streaming sites
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- Figure 6: Purchase behaviours in live streaming/short video platform in the last six months, December 2019
- Brands’ official sites have more credibility
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- Figure 7: Features associated with two online channels in the last six months, December 2019
- Free samples and trails are the key to attract consumers
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- Figure 8: Services preferred at the store, December 2019
- What we think
Issues and Insights
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- Not all opportunities are found online
- The facts
- The implications
- Live streaming is a mirage with more loyalty to discounts
- The facts
- The implications
- Evolving bricks-and-mortar stores to stay in the game
- The facts
- The implications
The Market – What You Need to Know
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- Promising growth maintained
- More innovations in retail format
Market Size and Forecast
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- Steady growth is expected to continue
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- Figure 9: Best- and worst-case forecast of market value beauty retailing, China, 2014-24
- Various channels continue to growth
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- Figure 10: Store number of beauty retailer outlets, by segment, 2017-19
Market Factors
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- More possibilities in store
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- Figure 11: Xiangyihui in Shanghai
- Pursuit of ‘beauty’ and greater desire for segmentation
- KOL and idol effects
Key Player – What You Need to Know
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- Domestic cosmetic stores are opening up more stores
- Online made brands to go offline with more possibilities
- Collaborating between different brands
Market Share
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- Overview of top five beauty retailers
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- Figure 12: Sales value, store number and sales per store of the top five beauty retailers, China, 2018-19
- Watsons
- Sephora
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- Figure 13: Sephora’s frozen party game
- Mannings
- Gialen
- T3C
- Who debuted the China market?
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- Figure 14: Aritaum’s WeChat app and offline store
- Who left the competition?
Competitive Strategies
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- More online brands go offline
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- Figure 15: Perfect Diary opening offline stores, China, 2019
- AR technology for make up buyers
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- Figure 16: AR for Armani, China, 2019
- More service stores to elevate brands’ professionalism
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- Figure 17: Fillmed by Filorga, China, 2019
- Tutorial services for booking
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- Figure 18: M.A.C make up services, China, 2019
Who’s Innovating?
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- Retail format
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- Figure 19: New retail formats, China, 2018 and 2019
- Crossover collaborations with different brands
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- Figure 20: Examples of crossover collaborations, China, 2019
The Consumer – What You Need to Know
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- The utilisation of offline shopping methods is on par with online shopping
- Health and beauty chain retailer challenge the leader in the offline market
- 15% have bought BPC products on live streaming/short video platforms
- Consumers say they are buying what they need from live streaming sites
- Live streaming shows more edge on price and detailed product introduction
- Free samples and trails are the key to attract consumers to offline stores
Shopping Methods
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- The shopping patterns of online and offline loyalty buyers are similar
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- Figure 21: Beauty and personal care shopping methods in the last six months, December 2019
- eCommerce matters more to China’s consumers than US shoppers
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- Figure 22: Beauty and personal care shopping methods in the last six months, China 2019 vs US 2018
- Younger generation aged 18-24 tends to buy online as their top choice whereas older generation prefer to buy in-store
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- Figure 23: Beauty and personal care shopping methods in the last six months - first choice, by age, December 2019
- Buyers from tier two cities use both ways to shop
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- Figure 24: Beauty and personal care shopping methods in the last six months - first choice, by city tier, December 2019
- Rural to urban migrants are the top online users
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- Figure 25: Beauty and personal care shopping methods in the last six months - first choice, by resident type, December 2019
Most Visited Bricks-and-Mortar Stores
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- Health and beauty chain retailers challenge the position of regular supermarkets/hypermarkets…
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- Figure 26: Most often visited bricks-and-mortar stores in the last six months, December 2019
- …mainly driven by 30s
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- Figure 27: Most often visited bricks-and-mortar stores in the last six months - first choice, by age, December 2019
- Rural-to-urban migrants purchased more in supermarkets
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- Figure 28: Most often visited bricks-and-mortar stores in the last six months - first choice, by resident type, December 2019
Most Visited Online Stores
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- Domestic shopping websites ranked as top online purchasing channel left other platforms far behind
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- Figure 29: Most often visited online stores in the last six months, December 2019
- High earners are more likely to purchase from brands’ official websites and less often to visit domestic shopping websites
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- Figure 30: Most often visited online stores in the last six months - first choice, by monthly personal income, December 2019
- Consumers from lower tier cities purchase more from social ecommerce platforms
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- Figure 31: Most often visited online stores in the last six months - first choice, by city tier, December 2019
- Middle aged consumers prefer to buy from domestic shopping websites
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- Figure 32: Most often visited online stores in the last six months - first choice, by age, December 2019
Purchase Behaviours in Live Streaming/Short Video Platforms
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- Consumers think they are rationale shoppers
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- Figure 33: Purchase behaviours in live streaming/short video platform in the last six months, December 2019
- Females are more focused on needs whereas males buy what they don’t have
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- Figure 34: Purchase behaviours in live streaming/short video platform in the last six months, by gender, December 2019
- 80s are more interested in participation whereas 70s are more reasonable towards making purchase
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- Figure 35: Purchase behaviours in live streaming/short video platform in the last six months, by generation, December 2019
- Lower tier cities enjoys promotion whereas higher tier cities are more interactive towards live streaming
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- Figure 36: Purchase behaviours in live streaming/short video platform in the last six months, by city tier, December 2019
Features Associated with Two Online Channels
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- Brands’ official flagship stores have more advantages than live streaming platforms
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- Figure 37: Features associated with two online channels, December 2019
- Authenticity is the main concern for those who do not use live streaming platform to buy
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- Figure 38: Features associated with two online channels, live streaming/short video platforms user, December 2019
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- Figure 39: Features associated with two online channels, live streaming/short video platforms non-user, December 2019
Services Preferred in Bricks-and-Mortar Stores
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- Free samples are the most preferred service in store
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- Figure 40: Services preferred in store, December 2019
- Price promotion and leisure experience are triggers that attract online buyers to visit offline stores
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- Figure 41: Services preferred in store, by shopping method, December 2019
- Professional in-store beauty advisor in lower tier cities is more important to attract consumers
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- Figure 42: Services preferred in store, by city tier, December 2019
- Professional BA appeal to consumers with broadened horizon
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- Figure 43: Services preferred in store - ‘professional in-store beauty advisor’, by resident type, December 2019
Meet the Mintropolitans
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- Mintropolitans use similar shopping methods as non-Mintropolitans
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- Figure 44: Beauty and personal care shopping methods in the last six months - first choice, by consumer classification, December 2019
- Mintropolitans have a wider offline purchase channel
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- Figure 45: Most often visited bricks-and-mortar stores in the last six months - first choice, by consumer classification, December 2019
- Brands’ official website/apps are preferred by Mintropolitans
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- Figure 46: Most often visited online stores in the last six months - first choice, by consumer classification, December 2019
- Mintropolitans appreciate professional services provided by in-store beauty advisors and free skin test
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- Figure 47: Services preferred in store, by consumer classification, December 2019
Appendix – Market Size and Forecast
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- Figure 48: Total value sales of beauty retailing, China, 2014-24
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Appendix – Methodology and Abbreviations
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- Methodology
- Fan chart forecast
- Abbreviations
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