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, 2015-25
- Companies and brands
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- 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
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- Figure 3: Beauty/personal care products purchased in the last six months, January 2021
- The multiples lead, while vertical channels play catch-up
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- 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
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- Figure 5: Most often visited online channels in the last six months, January 2021
- Online and offline channels offer different attributes
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- Figure 6: Reasons for purchasing from physical stores or online in the last six months, January 2021
- Consumers seek more product information in-store
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- Figure 7: In-store service desired for beauty/personal care products, January 2021
- Fashion shows are the most welcomed in-store style
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- Figure 8: In-store styles desired for beauty/personal care products, January 2021
- What we think
Issues and Insights
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- Provide immersive shopping experience
- The facts
- The implications
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- Figure 9: Different store style of HARMAY, China
- What’s next for live e-commerce?
- The facts
- The implications
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- Figure 10: HR Sanya duty-free pop-up store live streaming, China, 2020
- From ‘new retail’ to ‘smart beauty retail’
- The facts
- The implications
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- Figure 11: JD AI skin test function, China, 2020
- Figure 12: Gucci AR fragrance on Snapchat, 2020
The Market – Key Takeaways
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- Double-digit growth rate in 2020
- COVID-19 accelerates the development of online channels and duty-free stores
Market Size and Forecast
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- Stable growth in a slower speed
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- Figure 13: Best- and worst-case forecast of total value sales of beauty retailing, China, 2015-25
- Offline channels continue developing
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- Figure 14: Store number of beauty retailer outlets, by segment, 2018-20
Market Factors
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- 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
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- Figure 15: International brands enter in China market on Tmall Global, China, 2020
- More regulation on live streaming e-commerce
Key Players – Key Takeaways
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- Key beauty retailers suffered, while new retailers developed
- Provide more experiences in-store
Market Share
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- Traditional key beauty retailers struggling
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- 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
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- Independent beauty brands build ‘concept store’ in offline
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- 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
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- Digitalisation
- Build private community
- Beauty Delivery
- Link to art
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- Figure 18: Sephora release conference art design, China, 2021
- Connect with consumers through 24h live
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- Figure 19: MECCA LIVE, Australia, 2020
The Consumer – Key Takeaways
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- 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
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- Online channels are catching up
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- Figure 20: Beauty/personal care products purchased in the last six months, January 2021
- Online channels enjoy rapid growth
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- 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
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- 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
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- Figure 23: Change of purchasing beauty/personal care products online, by selected demographics, 2021 vs 2018
Most Visited Bricks-and-Mortar Stores
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- Regular supermarket/hypermarkets are first in mind, while health and beauty chain retailers are more chosen
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- Figure 24: Most often visited bricks-and-mortar stores in the last six months, January 2021
- Beauty specialist retailers become slightly more popular today
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- 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
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- 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
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- Domestic comprehensive shopping websites dominate online visits
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- Figure 27: Most often visited online channels in the last six months, January 2021
- Live streaming/short video platforms stand out…
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- 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
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- 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
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- Offline for quality and experience, online for competitive prices
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- 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…
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- Figure 31: Reasons for purchasing from physical stores in the last six months, by age, January 2021
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- Figure 32: Reasons for purchasing from physical stores in the last six months, by monthly personal income, January 2021
- …and also online
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- 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
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- Education is the main demand in physical stores
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- Figure 35: In-store service desired for beauty/personal care products, January 2021
- Women prefer product usage demonstrations, while men prefer self-shopping
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- Figure 36: In-store service desired for beauty/personal care products, by gender, January 2021
- Personalised services appeal more to high earners
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- Figure 37: In-store service desired for beauty/personal care products, by monthly personal income, January 2021
In-store Experience
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- Fashion and art styles are preferred when choosing BPC products
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- 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
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- Figure 39: In-store styles desired for beauty/personal care products, by generation, January 2021
- However, SPA style is attractive to affluent consumers
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- Figure 40: In-store styles desired for beauty/personal care products, by monthly personal income, January 2021
Meet the Mintropolitans
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- Offline means good quality and experience to MinTs, while online means convenience and wider choices
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- 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
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- Figure 42: In-store service desired for beauty/personal care products, by consumer classification, January 2021
Appendix – Market Size and Forecast
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- Figure 43: Total value sales of beauty retailing, china, 2015-25
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Appendix – Methodology and Abbreviations
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- Methodology
- Abbreviations
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