“The Chinese skincare industry has experienced tremendous growth in the past decade. At present, the country’s skincare market is the second largest worldwide after Japan. Yet, there is still huge growth potential because of its largely untapped nature. Disposable income among the urban middle class has been increasing rapidly, and the country’s population of 1.3 billion offers a large consumer base. These huge changes are due to the rapid economic growth seen in China in the past 30 years as a result of urbanisation and industrialisation.
Furthermore, increasing urbanisation also attracts a great migration of Chinese into the urban cities from rural areas for the better working opportunities offered in the urban cities with much higher pay, and with increasing wealth, consumers are looking to trade up and are starting to demand more from the products they are paying for.
Meanwhile, as more foreign investors set up business in China, they bring in new technology and foreign culture as well. The Chinese thus become exposed to all the latest trends, new technology and even new culture. In particular, the younger generation is willing to try to purchase new products and adapt to new things and experiences.
These factors position China as a very attractive market to manufacturers of personal care products, both local and international. Also, the expansion and the development of the retail infrastructure have helped a lot in spreading the skincare market much wider across China regions.
Chinese women nowadays are receiving higher education, getting equal employment opportunities, and are gaining increasing financial independence. They are now looking at beauty purchases as investments for their successful careers, especially those who work in the higher tier cities.
These women are placing a lot of emphasis on facial skincare and their expectations are getting higher and higher, whether they live in Shanghai, Beijing or less developed areas, which indicates not only that research and development in China has become crucial to brands in creating excellent skincare products, but also that it is critical that companies understand these most demanding consumers and that products meet their needs.
As the popularity of skincare brands can be quite regional, Mintel’s consumer survey, conducted amongst ten tier one and tier two cities, can only be indicative but not representative of the whole country.”
In this report, Mintel answers the key questions relating to the female skincare market in China:
How is the skincare market developing in China? What have international and local companies been doing in order to grow, given the fierce competition in the market?
With consumers having been exposed to so many chemical ingredient scares and experiencing sensitive skin, how can ingredient innovation win consumers’ confidence in products?
Is skincare product innovation fulfilling the needs of Chinese consumers, and given there are so many influences from the West and also from other regions. What are the main opportunities? How do brands stand out from the crowd?
Despite there being so many skincare products in the Chinese market, is these products’ usage being fully exploited? Can a company specialise itself in certain products, usage occasions or even consumer groups to differentiate itself in the crowded market?
How can brands distribute their products to meet consumer demand? There is a growing demand among women for de-stressing and skin pampering moments; what can skincare companies do to fulfil it?
Definitions
This skincare report covers the retail market for facial and body care products for women in the People’s Republic of China. Market value is based on sales to consumers through all retail channels including direct to consumer. It includes mass-market and prestige lines, but excludes the professional sector, including beauty salons.
As mentioned, the skincare market has two sub-sectors, which are defined below.
Facial care:
Moisturisers/Nourishers
Moisturisers and skin foods for daytime use under make-up or at night.
Serum applications for intensive moisturisation.
Anti-agers/Wrinkle fillers.
Cleansers/toners
Cleansing creams, lotions, gels and wipes for the face and eye area, used principally for cleaning the skin and removal of make-up.
Astringents, toners and fresheners, used as the second stage in ‘regime ranges’, claimed to remove the remains of cleanser and to tighten the pores after cleansing.
Facial scrubs and exfoliating creams/waxes, glycolic peels and microdermabrasion kits/products.
Masks
Facial packs/masks and exfoliating masks, used less frequently for deep cleansing.
Specialised
Specialist treatments for the lips, nose, eyes and neck.
Pore strips for cleansing.
Acne treatments.
BB cream.
Excluded
Products targeted specifically at men, plus depilatories and bleaches (for facial hair).
Medicated products (including products for skin impurities or for problem skin).
Products specifically for babies.
Suncare, even if it contains moisturiser.
Body care
Hand & Nail
Hand – Moisturising creams/lotions & Anti-ageing.
Nail – Nourisher/moisturiser & Cuticle cream/ridge filler.
Foot – Cream/balms/wipes
General – Body/Bust
Exfoliates/scrubs, eg polishing grains, scrubs.
Moisturisers/hydrators/nourishing in any formats and also including those that match or are line extensions to female fragrances – body butters.
Slimming/anti-cellulite/firming/re-shaping/anti-ageing.
Others (eg, body care sets).
Excluded
Depilatories and bleaches, talcum powder, nail polish/varnish/cosmetics/colour, foot deodorants/talc/insoles. Medicated. Products specifically for babies.
therapeutic creams for skin conditions such as psoriasis and eczema
hardware products such as loofahs and massagers
salon treatments, which are applied by beauty therapists
aromatherapy oils, although body lotions or creams formulated with essential oils are included.
razors and blades.
Consumer research
For the purposes of this report, Mintel commissioned a quantitative research survey carried out online to explore consumption and attitudes of female consumers, aged between 20 and 50, towards skincare products.
Fieldwork was conducted in May 2012, in four tier one cities and six tier two cities of 3,000 women aged 20+. Tier one cities include Beijing, Shanghai, Guangzhou and Chengdu. Tier two cities include Shenyang, Nanjing, Hangzhou, Shenzhen, Chongqing and Wuhan.
