Table of Contents
Executive Summary
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- Market and competition
- The consumer
- Prestige skincare products show stable performance after the pandemic
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- Figure 1: Money spent on different facial skincare products, January 2021
- Domestic shopping websites become a leading channel
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- Figure 2: Purchase channel used for buying prestige skincare products, January 2021
- Better efficacy remains the most important reason for using
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- Figure 3: Reasons for using prestige brands, 2020 vs 2021
- International prestige brands are seen as professional skincare solutions
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- Figure 4: Image associated with prestige skincare brands, January 2021
- Marketing strategy focus on skin solutions is more important
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- Figure 5: Brand activities that increase favourability, January 2021
- Ethical related claims are on the rise
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- Figure 6: Interested sustainable activities for a prestige skincare brand, January 2021
- What we think
Issues and Insights
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- Launching prestige products customized to serve Chinese skin type
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- Figure 7: NUMBER skincare set
- Legacy means more than just history
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- Figure 8: Vive brand story
- Focus on creating value to justify premium prices
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- Figure 9: L'Oréal celebrating 50 years of its slogan on International Women’s Day, 2020
Market and Competition – Key Takeaways
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- Opportunities for local brands entering prestige market
- Long-established brands continue to upgrade iconic products
Market Factors
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- Competition from domestic brands
- Prestige brands acquiring niche brand
- Relaxed policy on animal testing means more ethical brands enter China market
- Live streaming continues to heat up
Competitive Strategies
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- Brands continue updating classic iconic products
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- Figure 10: Prestige brands with upgraded iconic products, China 2020
- Gamifying an icon
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- Figure 11: Serum Quest by Estée Lauder, US 2020
- Launch pop-up stores to support duty-free shops
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- Figure 12: Pop-up stores in Hainan, China 2020
- Domestic brands build up prestige brand image by promoting technology
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- Figure 13: Quadha brand story
- Methods of product application to enhance efficacy and professional image
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- Figure 14: Brands’ posters on products application
Launch Activity and Innovation
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- More prestige skincare products launched compared to previous years
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- Figure 15: Price positioning of new product launches in facial skincare category, China, 2018-20
- Prestige products focused on anti-aging related claims
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- Figure 16: Top 10 claims in prestige facial skincare products launches, China, 2020
- Rose petal concentrate ingredients became a popular ingredient
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- Figure 17: Newly launched prestige skincare products with rose ingredients, China, 2020
- Prestige make up brands entering skincare
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- Figure 18: Jones Road eye/facial cream, US, 2021
- Figure 19: Charlotte Tilbury magic cream, UK, 2020
- Extend product range from iconic products
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- Figure 20: Product set from Fresh Guyuan and Helena Rubinstein green bottle, China
The Consumer – Key Takeaways
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- Spending per each skincare category unchanged
- Domestic comprehensive shopping websites becomes a key channel
- To get better results is still the top reason for using
- International brands boast a professional image
- Chinese consumers are looking for products designed for their skin
- Sustainable activities are the new trend
Price Spent on Different Skincare Products
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- Spending habit on prestige skincare products unchanged by COVID-19
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- Figure 21: Money spent on different facial skincare products, January 2021
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- Figure 22: Average spending on different facial skincare products, 2020 vs 2021
Purchase Channel
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- Online channels become a key shopping destination
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- Figure 23: Purchase channel used for buying prestige skincare products, January 2021
- Younger consumers prefer to buy from social media sites
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- Figure 24: Purchase channel used for buying prestige skincare products, by age, January 2021
- Figure 25: Gen Z unboxing Chanel cotton
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- Figure 26: Types of purchase channel used for buying prestige skincare products, by age, January 2021
- Offline counters attract affluent consumers and lower tier residents
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- Figure 27: Purchase channel used for buying prestige skincare products – ‘counters in department stores’, by selected demographics, January 2021
Reasons for Using Prestige Brands
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- Efficacy remains the key driver for usage
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- Figure 28: Reasons for using prestige brands, 2020 vs 2021
- Emotional benefits increase with age
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- Figure 29: Selected reasons for using prestige brands, by age, January 2021
- Figure 30: L'Oréal campaign on International Women’s Day, China, 2020
- Younger consumers show stronger conformity than older generations
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- Figure 31: Selected reasons for using prestige brands, by age, January 2021
Brand Perception
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- International brands do well in building up a professional image
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- Figure 32: Image associated with prestige skincare brands, January 2021
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- Figure 33: Shiseido’s refillable bottle, Japan, 2020
- Younger consumers regard Chanel and Dior as fashionable
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- Figure 34: Image associated with prestige skincare brands – Chanel and Dior, by age, January 2021
- Whereas SK-II’s marketing successfully recruits younger consumers
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- Figure 35: Image associated with prestige skincare brands – SK-II, by age, January 2021
Marketing Strategy Focus on China
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- Suitable for Chinese skin condition is the key
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- Figure 36: Brand activities that increase favourability, January 2021
- Consumers with higher income pay more attention to innovations
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- Figure 37: Selected brand activities that increase favourability, by income, January 2021
Interested Sustainable Activities
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- Sustainability is worth attention now
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- Figure 38: Interested sustainable activities for a prestige skincare brand, January 2021
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- Figure 39: Lancôme offering reusable filler
- Young consumers have stronger feelings towards cruelty free
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- Figure 40: Selected interested sustainable activities for a prestige skincare brand, by age, January 2021
- Organic ingredients drive affluent consumers’ affinity
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- Figure 41: Sustainable activities interested in a prestige skincare brand, by monthly personal income, January 2021
Appendix – Methodology and Abbreviations
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- Methodology
- Abbreviations
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