Table of Contents
Overview
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- What you need to know
- Products covered in this report
Executive Summary
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- The market
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- Figure 1: Best- and worst-case forecast of total retail sales of cosmetics in china, 2010-20
- Key players
- The consumer
- Consumers are buying less frequently…
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- Figure 2: Purchase of beauty/personal care products in the past three months, Oct 2015 and Nov 2014
- …but they are not spending less
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- Figure 3: Spending on beauty/personal care products, Oct 2015
- …and Mianzi (facial beauty) will not be downgraded
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- Figure 4: Spending on beauty/personal care products, Oct 2015
- In-store experience remains essential for brands
- Innovative mobile payment will be the future battlefield
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- Figure 5: Mobile digital marketing opportunities, Oct 2015 and November 2014
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- Figure 6: Purchase channel of beauty/personal care products, Oct 2015
- O2O marketing continues to flourish in China
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- Figure 7: Purchase channel of beauty/personal care products, by mobile digital marketing opportunity, Oct 2015
- What we think
Issues and Insights
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- Locating the best resources for facial skincare
- The facts
- The implications
- Creating an irreplaceable in-store experience
- The facts
- The implications
- Innovative mobile payment
- The facts
- The implications
The Market – What You Need to Know
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- Mobile is becoming an important platform for shoppers to buy beauty products
- Cross-border e-commerce will pose a threat to local players
Market Drivers
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- Consumers are increasingly shifting online to buy beauty and cosmetics products
- Go Mobile
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- Figure 8: Preferred Purchase Method of Popular Products, July 2015
- Cross-border e-commerce will post a threat to local players
Market Size and Forecast
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- Growth remains stable…
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- Figure 9: China beauty retailing value sales, 2010-15
- …and it will retain stable growth over the next five years
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- Figure 10: Best- and worst-case forecast of total retail sales of cosmetics in china, 2010-20
Key Players – What You Need to Know
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- Sephora, innovation never stop
- Watsons struggles with sales growth per store due to shoppers shifting online
- Alibaba’s battle with counterfeit goods continues
- Yihaodian, lost in translation
- JD.com enters Silicon Valley
Market Share
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- Online retailers continue to erode share of wallet
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- Figure 11: Top five offline players, by value, 2012-15
Who’s Innovating?
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- Disruptive In-store innovation
- Virtual beauty is everywhere
- Red Book
- Face Swipe payment
The Consumer – What You Need to Know
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- Consumers are buying less frequently…
- …but spending in some categories remains strong
- Most respondents reported buying the beauty products via the brand counter at department stores
- The fragmentation of beauty channels across different cities
- Watsons leads on location and brand selection
- Authenticity remains the biggest challenge for Alibaba
- Innovative mobile payment will be the future battlefield
Purchase of Beauty and Personal Care Products
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- Consumers are buying less frequently
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- Figure 12: Purchase of beauty/personal care products in the past three months, Oct 2015 and Nov 2014
- Young females care more about facial care
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- Figure 13: Purchase of beauty/personal care products, by demographics, Oct 2015
- Figure 14: Purchase of beauty/personal care products, by demographics, Oct 2015
- Cross-selling opportunity to female consumers
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- Figure 15: Repertoire of Purchase of beauty/personal care products, by demographics, Oct 2015
- Oral health promotion for Sichuanese
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- Figure 16: Purchase of beauty/personal care products, by demographics, Oct 2015
Spending per Category
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- Despite less frequent purchase, spending remains strong…
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- Figure 17: Spending of beauty/personal care products, Oct 2015
- …and Mianzi (Facial beauty) will not be downgraded
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- Figure 18: Spending of beauty/personal care products, Oct 2015
- However, young men reported spending the least on facial skincare
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- Figure 19: Spending of beauty/personal care products, by demographics, Oct 2015
- Shower and bath market remains flat
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- Figure 20: Spending on beauty/personal care products, Oct 2015
Purchase Channels
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- In-store experience remains essential for brands
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- Figure 21: Purchase channel of beauty/personal care products, Oct 2015
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- Figure 22: Innisfree store in shanghai, q4 2015
- Tmall leads beauty retailing online
- Independent bricks-and-mortar store will continue declining
- The fragmentation of beauty channels across different cities
- Channel loyalty varies in different categories
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- Figure 23: Repertoire of Purchase channel of beauty/personal care products, by purchase of beauty/personal care products, Oct 2015
- Figure 24: Repertoire of Purchase channel of beauty/personal care products, by purchase of beauty/personal care products, Oct 2015
Perception of Retailers
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- Beauty-specialist chain store
- Watsons leads on location and brand selection
- Sephora leads on in-store design and professional service
- Gialen has the advantage in offers and promotions
- Mannings still needs to establish its unique selling point
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- Figure 25: Perception of major beauty retailing offline, Oct 2015
- E-retailers
- Taobao leads on user experience but has a poor perception of authenticity
- Tmall leads on brand selection
- JD has a good reputation for authenticity and delivery service
- Yihaodian offers smart recommendation
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- Figure 26: Perception of major beauty retailing online, Oct 2015
Marketing Opportunities
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- Innovative mobile payment will be the future battlefield
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- Figure 27: Mobile digital marketing opportunities, Oct 2015 and November 2014
- Make mobile alerts exciting
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- Figure 28: Mobile digital marketing opportunities, Oct 2015 and November 2014
- How to retain smart young female shoppers
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- Figure 29: Mobile digital marketing opportunities, by demographics, Oct 2015
- O2O marketing continues to flourish in China
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- Figure 30: Purchase channel of beauty/personal care products, by mobile digital marketing opportunities, Oct 2015
Meet the Mintropolitans
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- Why Mintropolitans?
- Who are they?
- Higher buying power
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- Figure 31: Spending on beauty/personal care products, Oct 2015
Appendix – Methodology and Definitions
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- Methodology
- Market Sizing definition
- Fan chart forecast
- Abbreviations
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