Table of Contents
Introduction
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- Definition
- Report structure
- Methodology
Executive Summary
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- The market
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- Figure 1: Forecast - value sales of beauty retailers in China (value sales), 2007-17
- Figure 2: Forecast - beauty retailer market in China (store numbers), 2007-17
- Companies and brands
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- Figure 3: Main brands, by store numbers and value sales, 2012
- The consumer
- Frequency of use and core consumers
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- Figure 4: Frequency of purchasing products from beauty retailers, December 2012
- Occasions of visiting beauty retailers
- Selecting beauty product retail stores: important factors
- Main product categories bought at beauty retailers
- Key issues
- Brand experiences that focus on product testing and in-store consultation can be a competitive advantage for beauty retailers
- Driving sales growth by optimising product categories, brands and product mix
- Using specialist cosmetic retailers to expand in lower tier cities
The Market
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- Key points
- Market size
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- Figure 5: Beauty retail market in China, 2007-12
- Facial skincare dominates sales
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- Figure 6: Beauty and personal care market in China, 2007-2011, (RMB mn)
- Market drivers
- Growth in beauty retailer sales is being driven mainly by people’s growing demand for beauty cosmetics and increasing consumer spending power
- The rapid growth of the Chinese middle class is also driving growth in the cosmetics retail market
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- Figure 7: Discretionary spending, April 2012
- Improved infrastructure has created new opportunities for beauty retailers
- Multinational brands have driven growth
- New formats and channels offer consumers greater choice
- Market challenges
- Cultural barriers
- Demographic challenges
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- Figure 8: Usage frequency of make-up and colour cosmetics products, by monthly personal income, May 2012
- Concerns over product safety could hold back the market
- Regional variation makes expansion difficult
- A lack of R&D spend restricts innovation
- Rising costs are putting pressure on retailer margins
- Competitive environment
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- Figure 9: Beauty retail channels market share 2005-10
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- Figure 10: Characteristics of beauty retail channels
- Health and beauty stores
- Specialist cosmetic retailers
- Brand retailers (including cosmetic and cosmeceutical brands)
- Supermarkets and online sales present the greatest threat to beauty retailers
- The forecast
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- Figure 11: Forecast - value sales of beauty retailers in China (value sales), 2007-17
- Figure 12: Forecast - stores numbers of beauty retailers in China (store numbers), 2007-17
Companies and Brands
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- Key points
- Brand market share
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- Figure 13: Main brands, by store numbers and value sales
- Main brands
- Health and beauty stores
- Guangzhou Watson’s Personal Care Stores Limited (Watson’s)
- Mannings Guangdong Retail Company Limited (Mannings)
- Specialist cosmetic retailers
- Sephora
- Guangzhou Gialen Cosmetics Co., Ltd (Gialen)
- Sasa
- Vinistyle
- Brand stores
- Avon
- Herborist
The Consumer
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- Key points
- Frequency of visiting beauty retailers
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- Figure 14: Frequency of purchasing products from beauty retailers, December 2012
- Beauty retail stores: core consumers
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- Figure 15: Attitudes towards shopping for beauty products from beauty retailers, December 2012
- Occasions for visiting beauty retailers
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- Figure 16: Occasions of going to beauty retailers, December 2012
- Selecting beauty retailers: important factors
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- Figure 17: Important factors when selecting a beauty retailer, December 2012
- Beauty retail stores: brand loyalty
- Watson’s
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- Figure 18: Watson’s brand loyalty (%), December 2012
- Mannings
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- Figure 19: Mannings brand loyalty (%), December 2012
- Sephora
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- Figure 20: Sephora brand loyalty (%), December 2012
- Sasa
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- Figure 21: Sasa brand loyalty (%), December 2012
- Gialen
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- Figure 22: Gialen brand loyalty (%), December 2012
- Avon
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- Figure 23: Avon brand loyalty (%), December 2012
- Vinistyle
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- Figure 24: Vinistyle brand loyalty (%), December 2012
- Ayaya
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- Figure 25: Ayaya brand loyalty (%), December 2012
- OMEY
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- Figure 26: OMEY brand loyalty (%), December 2012
- Main product categories bought at beauty retailers
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- Figure 27: Items bought from beauty retailers in the past 6 months, December 2012
- Important factors in choosing beauty products
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- Figure 28: Important factors when selecting beauty products, December 2012
- Attitudes towards shopping for beauty products from beauty retailers
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- Figure 29: Attitudes towards shopping for beauty products from beauty retailers, December 2012
Building Stronger Brand Experiences
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- Key points
- Beauty retailers are focusing more and more on product testing and in-store consultation
- Brand experience can help retailers differentiate
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- Figure 30: Attitudes towards skin care products, May 2012
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- Figure 31: Important factors when selecting beauty products, December 2012
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- Figure 32: Attitudes towards shopping for beauty products from beauty retailers, December 2012
- The retail environment can help educate consumers
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- Figure 33: Attitudes towards cosmetics, 2012
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- Figure 34: Attitudes towards shopping for beauty products from beauty retailers, December 2012
- Providing product trials without bricks-and-mortar outlets
- Enhancing brand experience by providing value-added services
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- Figure 35: Occasions of going to beauty retailers, by age and monthly personal income, China, April 2012
- Integrating in-store experiences, social media and company websites
- The advantages of offering a wider range of services
- Building brand experience through store design and ambiance
- Increasing brand engagement through brand ethos
- What this means
Driving Sales Growth by Optimising Product Categories, Brands and Product Mix
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- Issues at a glance
- Brand offering: retailers need to consider major categories and smaller but high-growth categories
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- Figure 36: Market size for beauty and personal care products in China, 2007-11
- Unique own-brands and products: an important draw for consumers
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- Figure 37: Important factors when selecting a beauty retailer, December 2012
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- Figure 38: Attitudes towards shopping for beauty products from beauty retailers, December 2012
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- Figure 39: Proportion of private label product launches, 2008-13
- Facial skincare: new products tap into segmented demand and drive sales
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- Figure 40: New product claims in the skincare market, 2008-13
- The growth of natural ingredients
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- Figure 41: Important factors when selecting beauty products, December 2012
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- Figure 42: Agreement with the statement “I tend to buy products with all-natural ingredients”, May 2012
- Packaging innovation can help drive sales in beauty retailers
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- Figure 43: Attitudes towards cosmetic packaging, by type of product, May 2012
- Men’s toiletries: room for growth
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- Figure 44: Frequency of using men’s toiletries products, July 2012
- Figure 45: Attitudes towards the range of male beauty products, December 2012
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- Figure 46: Place of buying men’s toiletries, July 2012
- Beauty products gifting not yet fully explored/personalised gifts can drive sales
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- Figure 47: Attitudes towards shopping for beauty products from beauty retailers, December 2012
- What this means
Using Cosmetic Specialist Retailers to Expand in Lower Tier Cities
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- Key points
- Rapid growth of specialist cosmetic stores due to growing demand for beauty products in tier two and three cities
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- Figure 48: Urban and rural population, GDP, and per capita income in 2010 in China
- Figure 49: CAGR of population, GDP and per-capita income, 2000-10 in China
- Regional growth of Chinese specialist cosmetic retailers
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- Figure 50: Major health and beauty stores and specialist cosmetic stores, by coverage, city tier and store numbers
- Figure 51: Beauty retailers, by brand loyalty (%)
- Domestic specialist cosmetic retailers: overcoming limitations and achieving growth
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- Figure 52: Important factors when selecting a beauty retailer, December 2012
- Chinese beauty brands breaking into the market through specialist cosmetic stores
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- Figure 53: Brands of skincare purchased in past 12 months, May 2012
- Domestic brands need to allay fears over the quality of their product range
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- Figure 54: Attitudes towards cosmetics, May 2012
- International brands can expand into tier two and three cities via domestic specialist cosmetic retailers
- Major brands can form partnerships with specialist retailers
- What this means
Appendix – Frequency Of Purchases From Beauty Retailer
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- Figure 55: Frequency of purchase from beauty retailer, December 2012
- Figure 56: Frequency of purchase from beauty retailer, December 2012
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- Figure 57: Occasions of visiting beauty retailer, by most popular frequency of purchase from beauty drug stores (Watson’s, Manning, etc), December 2012
- Figure 58: Occasions of visiting beauty retailer, by next most popular frequency of purchase from beauty drug stores (Watson’s, Manning, etc), December 2012
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- Figure 59: Occasions of visiting beauty retailer, by most popular frequency of purchase from beauty retailers (Sephora etc), December 2012
- Figure 60: Occasions of visiting beauty retailer, by next most popular frequency of purchase from beauty retailers (Sephora etc), December 2012
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- Figure 61: Occasions of visiting beauty retailer, by most popular frequency of purchase from perfumeries, December 2012
- Figure 62: Occasions of visiting beauty retailer, by next most popular frequency of purchase from perfumeries, December 2012
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- Figure 63: Occasions of visiting beauty retailer, by most popular frequency of purchase from other beauty retailer, December 2012
- Figure 64: Occasions of visiting beauty retailer, by next most popular frequency of purchase from other beauty retailer, December 2012
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- Figure 65: Most popular frequency of purchase from beauty drug stores (Watson’s, Manning, etc), by demographics, December 2012
- Figure 66: Next most popular frequency of purchase from beauty drug stores (Watson’s, Manning, etc), by demographics, December 2012
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- Figure 67: Most popular frequency of purchase from beauty retailers (Sephora etc), by demographics, December 2012
- Figure 68: Next most popular frequency of purchase from beauty retailers (Sephora etc), by demographics, December 2012
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- Figure 69: Most popular frequency of purchase from perfumeries, by demographics, December 2012
- Figure 70: Next most popular frequency of purchase from perfumeries, by demographics, December 2012
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- Figure 71: Most popular frequency of purchase from other beauty retailer, by demographics, December 2012
- Figure 72: Next most popular frequency of purchase from other beauty retailer, by demographics, December 2012
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Appendix – Occasions Of Visiting Beauty Retailer
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- Figure 73: Occasions of visiting beauty retailer, December 2012
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Appendix – Products Bought At A Beauty Retailer In Past 6 Months
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- Figure 74: Products bought at a beauty retailer in past 6 months, December 2012
- Figure 75: Products bought at a beauty retailer in past 6 months, by most popular frequency of purchase from beauty drug stores (Watson’s, Manning, etc), December 2012
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- Figure 76: Products bought at a beauty retailer in past 6 months, by next most popular frequency of purchase from beauty drug stores (Watson’s, Manning, etc), December 2012
- Figure 77: Products bought at a beauty retailer in past 6 months, by most popular frequency of purchase from beauty retailers (Sephora etc), December 2012
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- Figure 78: Products bought at a beauty retailer in past 6 months, by next most popular frequency of purchase from beauty retailers (Sephora etc), December 2012
- Figure 79: Products bought at a beauty retailer in past 6 months, by most popular frequency of purchase from perfumeries, December 2012
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- Figure 80: Products bought at a beauty retailer in past 6 months, by next most popular frequency of purchase from perfumeries, December 2012
- Figure 81: Products bought at a beauty retailer in past 6 months, by most popular frequency of purchase from other beauty retailer, December 2012
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- Figure 82: Products bought at a beauty retailer in past 6 months, by next most popular frequency of purchase from other beauty retailer, December 2012
- Figure 83: Most popular products bought at a beauty retailer in past 6 months, by demographics, December 2012
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- Figure 84: Next most popular products bought at a beauty retailer in past 6 months, by demographics, December 2012
- Figure 85: Other products bought at a beauty retailer in past 6 months, by demographics, December 2012
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Appendix – Most Important Factors Considered When Selecting A Beauty Retailer
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- Figure 86: Most important factors considered when selecting a beauty retailer, December 2012
- Figure 87: Most important factors considered when selecting a beauty retailer, by most popular frequency of purchase from beauty drug stores (Watson’s, Manning, etc), December 2012
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- Figure 88: Most important factors considered when selecting a beauty retailer, by next most popular frequency of purchase from beauty drug stores (Watson’s, Manning, etc), December 2012
- Figure 89: Most important factors considered when selecting a beauty retailer, by most popular frequency of purchase from beauty retailers (Sephora etc), December 2012
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- Figure 90: Most important factors considered when selecting a beauty retailer, by next most popular frequency of purchase from beauty retailers (Sephora etc), December 2012
- Figure 91: Most important factors considered when selecting a beauty retailer, by most popular frequency of purchase from perfumeries, December 2012
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- Figure 92: Most important factors considered when selecting a beauty retailer, by next most popular frequency of purchase from perfumeries, December 2012
- Figure 93: Most important factors considered when selecting a beauty retailer, by most popular frequency of purchase from other beauty retailer, December 2012
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- Figure 94: Most important factors considered when selecting a beauty retailer, by next most popular frequency of purchase from other beauty retailer, December 2012
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Appendix – Most Important Factors Considered When Buying Beauty Products
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- Figure 95: Most important factors considered when buying beauty products, December 2012
- Figure 96: Most important factors considered when buying beauty products, by most popular products bought at a beauty retailer in past 6 months, December 2012
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- Figure 97: Most important factors considered when buying beauty products, by next most popular products bought at a beauty retailer in past 6 months, December 2012
- Figure 98: Most important factors considered when buying beauty products, by other products bought at a beauty retailer in past 6 months, December 2012
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- Figure 99: Most important factors considered when buying beauty products, by demographics, December 2012
- Figure 100: Second most important factors considered when buying beauty products, by demographics, December 2012
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- Figure 101: Third most important factors considered when buying beauty products, by demographics, December 2012
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Appendix – Beauty Retailers Visited In Past Six Months
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- Figure 102: Beauty retailers visited in past 6 months-Shanghai, December 2012
- Figure 103: Beauty retailers visited in past 6 months-Beijing, December 2012
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- Figure 104: Beauty retailers visited in past 6 months-Guangzhou, December 2012
- Figure 105: Beauty retailers visited in past 6 months-Chengdu, December 2012
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- Figure 106: Beauty retailers visited in past 6 months-Shenyang, December 2012
- Figure 107: Beauty retailers visited in past 6 months-Xi’an, December 2012
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- Figure 108: Beauty retailers visited in past 6 months-Changsha, December 2012
- Figure 109: Beauty retailers visited in past 6 months-Wuxi, December 2012
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- Figure 110: Base: 296 female internet users aged 20+ who have purchased in any beauty retailer
- Figure 111: Beauty retailers visited in past 6 months-Qingdao, December 2012
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Appendix – Beauty Retailers Visited The Most Often
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- Figure 112: Beauty retailers visited the most often-Shanghai, December 2012
- Figure 113: Beauty retailers visited the most often-Beijing, December 2012
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- Figure 114: Beauty retailers visited the most often-Guangzhou, December 2012
- Figure 115: Beauty retailers visited the most often-Chengdu, December 2012
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- Figure 116: Beauty retailers visited the most often-Shenyang, December 2012
- Figure 117: Beauty retailers visited the most often-Xi’an, December 2012
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- Figure 118: Beauty retailers visited the most often-Changsha, December 2012
- Figure 119: Beauty retailers visited the most often-Wuxi, December 2012
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- Figure 120: Beauty retailers visited the most often-Wenzhou, December 2012
- Figure 121: Beauty retailers visited the most often-Qingdao, December 2012
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- Figure 122: Most popular beauty retailers visited the most often, by region, by demographics, December 2012
- Figure 123: Next most popular beauty retailers visited the most often, by region, by demographics, December 2012
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Appendix – Attitudes Towards Buying Beauty Products In Beauty Retailers
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- Figure 124: Attitudes towards buying beauty products in beauty retailers, December 2012
- Figure 125: Agreement with the statements ‘I don’t really care where I buy beauty and personal care products’ and ‘I prefer to shop around for beauty and personal cares products that offer the best promotional offers’, by demographics, December 2012
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- Figure 126: Agreement with the statements ‘I prefer shops where I can use my loyalty card’ and ‘I like to see how products feel/smell before buying’, by demographics, December 2012
- Figure 127: Agreement with the statements ‘I prefer to shop at beauty stores where staff are helpful and offer me advice’ and ‘My choice of beauty stores depends on whether I am buying for myself or for someone else’, by demographics, December 2012
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- Figure 128: Agreement with the statements ‘There are too few products for men’ and ‘Private label products are just as good as branded ones’, by demographics, December 2012
- Figure 129: Agreement with the statements ‘I use the internet to research prices and/or product function before buying beauty products’ and ‘I like to try out new products and brands’, by demographics, December 2012
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- Figure 130: Agreement with the statements ‘I’d like to see more beauty retailers offering their own ranges ’ and ‘I prefer to shop at beauty stores as they tend to offer certain beauty brands that are not necessarily available elsewhere.’, by demographics, December 2012
- Figure 131: Agreement with the statement ‘I prefer to shop online for beauty and personal care products’, by demographics, December 2012
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