Table of Contents
Executive Summary
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- Impact of COVID-19 on beauty services
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- Figure 1: Short, medium and long term impact of COVID-19 on beauty services, October 2020
- Diversity demand drive more usage and spending
- Increase online presence to keep more consumers engaged
- The market
- The consumer
- Hand treatments enjoy the fastest development over the past three years
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- Figure 2: Beauty services taken in the last 12 months, tier one cities, September 2020 vs July 2017
- Increase in service spending varies by demographic
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- Figure 3: Change in spending on specific beauty services in the last 12 months, September 2020
- Trying more service types, upgrading original services and increased frequency are main reasons for spending more
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- Figure 4: Reasons for spending more on facial beauty services or facial cosmetic surgery, September 2020
- Certification and customer reviews highly affect consumers’ recognition, while technology is the key difference between consumers in different city tiers
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- Figure 5: Features that can reflect the effectiveness of facial beauty services, September 2020
- Consumers get information from multiple channels
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- Figure 6: Information channels of beauty services, September 2020
- Still important to target device and prestige skincare enthusiasts
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- Figure 7: Beauty services used, by preference of beauty services, devices and prestige skincare products, September 2020
- What we think
Issues and Insights
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- Highlight technology when competing with at-home beauty devices and skincare products
- The facts
- The implications
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- Figure 8: Example of gene technology in beauty services, China
- Figure 9: Introduction of Thermage FLX
- Premiumisation developing beauty service market
- The facts
- The implications
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- Figure 10: Example of safe manicure products suitable for children and pregnant women, China
- Online, especially short videos, becomes a key consumer education channel
- The facts
- The implications
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- Figure 11: Example of live streaming in the beauty service market, China, 2020
- Figure 12: Example of educational live streaming of beauty services, China, 2020
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- Figure 13: Helijia’s cooperation with Mei Ji Jiang Meng, China, 2020
Market and Innovation – What You Need to Know
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- The beauty service market is still at an early stage of development
- The negative influence of COVID-19 is short-term
- Efforts by many parties stimulate growth
- Companies are trying innovative business models
Market Overview
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- A fragmented market with all kinds of players
- E-commerces join the competition landscape
- Despite the rise of micro-surgery, massage and hand treatments are still the most common beauty service types
Market Factors
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- Short-term lockdown disruption has not changed spending enthusiasm for beauty
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- Figure 14: Monthly change in total retail sales of consumer goods (incl foodservices) and cosmetics, China 2019-August 2020
- More regulations are standardising the industry
- Technological innovations drive market growth
- More transparent information provided for consumers
- Safety issues are not going away in the short time
Competitive Strategies and Innovations
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- Go to consumers rather than wait for them to come
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- Figure 15: L’Oréal’s ‘Spa To Go’ service, China, 2020
- Join forces to compete
- Beauty service platform teams up with beauty and skincare brands
- Expand new consumption scenarios
The Consumer – What You Need to Know
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- Overall growth in the usage of beauty services
- Focus on beauty services differ across different age groups and city tiers
- Premiumisation and frequency contribute to increasing spend
- Real proof needed
- Usage proportion similar among diverse information channels
- Potential in both beauty device and skincare consumers
Trends in Usage of Beauty Services
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- Massage and hand treatments still by far the most popular
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- Figure 16: Beauty services taken in the last 12 months, September 2020
- Hand treatments enjoy the biggest uptake
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- Figure 17: Beauty services taken in the last 12 months, tier one cities, September 2020 vs July 2017
- 30-39-year-old women’s attention to both face and body suggests they are worth attention
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- Figure 18: Beauty services taken in the last 12 months, by age, September 2020
- Women in tier one cities are more active
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- Figure 19: Beauty services taken in the last 12 months, by city tier, September 2020
Change in Spending
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- Still interested in beauty services despite impact of COVID-19
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- Figure 20: Change in spending on specific beauty services in the last 12 months, September 2020
- Women under 30 spent more on facial treatment
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- Figure 21: Percentage of spending more on beauty services in the last 12 months, by age, September 2020
- Women aged 40-49 seeking more effective solutions
- Younger women want quicker solutions to improve figure
- Different focus on facial beauty service by city tier
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- Figure 22: Percentage of spending more on beauty services in the last 12 months, by city tier, September 2020
Reasons for Spending More
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- Both premiumisation and frequency drive spending
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- Figure 23: Reasons for spending more on facial beauty services or facial cosmetic surgery, September 2020
- Post-1970s and post-1990s women are more likely to shift spending from skincare products to beauty services
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- Figure 24: Reasons for spending more on facial beauty services or facial cosmetic surgery, by generation, September 2020
Factors of Effectiveness
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- As user knowledge is limited, certification by an authority and good customer reviews are still most important endorsements
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- Figure 25: Features that can reflect the effectiveness of facial beauty services, September 2020
- The influence of recommendations by beauty KOLs is weak
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- Figure 26: Features that can reflect the effectiveness of facial beauty services, by age and monthly personal income, September 2020
- High earners pay more attention to friend and family recommendations
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- Figure 27: Features that can reflect the effectiveness of facial beauty services, by age and monthly personal income, September 2020
- Unique technology drives confidence in tier one cities
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- Figure 28: Features that can reflect the effectiveness of facial beauty services, by city tier, September 2020
Information Channel
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- No single information channel dominates
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- Figure 29: Information channels of beauty services, September 2020
- Beauty Evolution, Meilishuo and Keep are important apps to target heavy users
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- Figure 30: Apps used every day, by repertoire of beauty service types used, September 2020
- Younger women are more responsive to offline channels than older women
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- Figure 31: Information channels of beauty services, by age, September 2020
- High earners are more proactive in information channels
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- Figure 32: Information channels of beauty services, by monthly personal income, September 2020
Attitudes towards Beauty Services
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- Reassurance is still important in introducing new services
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- Figure 33: Willingness to try new beauty services, by age, September 2020
- Not fully ready for private labels
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- Figure 34: Attitudes towards private labels, September 2020
- Professional beauty service salon chains are preferred
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- Figure 35: Preference for beauty service salons, by monthly personal income, September 2020
- Technology can help brands build competitive advantage
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- Figure 36: Attitudes towards beauty service technology, by monthly personal income and city tier, September 2020
- Competition with prestige skincare and devices is inevitable but still at early stage
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- Figure 37: Attitudes towards beauty devices and prestige skincare products, September 2020
- Opportunities to target both beauty service and prestige skincare users
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- Figure 38: Beauty services used, by preference of beauty services, devices and prestige skincare products, September 2020
Meet the Mintropolitans
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- Mintropolitans have taken more types of beauty services
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- Figure 39: Beauty services taken in the last 12 months, by consumer classification, September 2020
- Mintropolitans’ increased spending is more likely to be driven by more visits to beauty salons/spas
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- Figure 40: Reasons for spending more on facial beauty services or facial cosmetic surgery, by consumer classification, September 2020
- Attitude towards unique technology differs the most between Mintropolitans and non-Mintropolitans
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- Figure 41: Features that can reflect the effectiveness of facial beauty services, September 2020
- Mintropolitans are more likely to use vertical beauty information channels
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- Figure 42: Information channels of beauty services – Percentage point difference, by consumer classification, September 2020
Appendix – Methodology and Abbreviations
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- Methodology
- Abbreviations
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