Table of Contents
Overview
-
- Covered in this Report
- Channels covered in this Report:
- Subgroup definitions (by Monthly Household Income)
Executive Summary
-
- The market
-
- Figure 1: Best- and worst-case forecast of total value sales of beauty retailing, China, 2012-22
- Companies and brands
-
- Figure 2: Change in retail sales, store numbers and sales per store of the top five beauty retailers, China, 2016-17
- The consumer
- Gap of purchasing from online and offline is shrinking
-
- Figure 3: BPC products purchased in the last six months, December 2017
- A red alert for supermarkets/hypermarkets
-
- Figure 4: Most often visited bricks-and-mortar stores in the last six months, 2017 vs 2016
- JD is chasing after Tmall
-
- Figure 5: Most often visited online stores in the last six months, 2017 vs 2016
- Differentiating product priorities for online and offline channels
-
- Figure 6: First choice of purchasing each of the selected BPC products, December 2017
- Emerging trend of using AR make-up trial online
-
- Figure 7: Activities taken part in in the last six months, December 2017
- Customised advice is more adoptable
-
- Figure 8: Ideal BA expertise, December 2017
- What we think
Issues and Insights
-
- Evolving shopping habits in offline stores
- The facts
- The implications
-
- Figure 9: Birchbox first standalone pop-up store, UK, 2017
- Fierce online competition
- The facts
- The implications
-
- Figure 10: JD AR make-up trial to try coloured contact lenses and blusher, China, 2017
- Expectation of an in-store beauty advisor
- The facts
- The implications
-
- Figure 11: Innisfree beauty class, US, 2018
-
- Figure 12: Estée Lauder Augmented Reality Training (ART) platform, US, 2018
The Market – What You Need to Know
-
- Growth driven by Cosmetics Stores (CS) channel
- Embracing new retail
Market Size and Forecast
-
- Boosted growth in the market
-
- Figure 13: Best- and worst-case forecast of total value sales of beauty retailing, China, 2012-22
- Enhanced attention to Cosmetics Stores (CS)
-
- Figure 14: Store number of beauty retailer outlets, by segment, 2015-17
-
- Figure 15: SeeYoung Flower Young product range, China, 2017
Market Drivers
-
- Online sales thrive continuously, especially buy on mobile
-
- Figure 16: Shopping channels of beauty and personal care products, April 2016 and May 2017
- More international brands enter the China market
-
- Figure 17: Hourglass opened up Tmall store, China, 2017
- Consumers buy more imported products…
-
- Figure 18: Customs data of the top five import source countries for cosmetics and skincare, 2017 Jan-Oct vs 2016 Jan-Oct
- …and local brands as well
-
- Figure 19: Top beauty brands ranking, by sales value on Tmall platform, China, November 11, 2017
- New retail emerges
-
- Figure 20: La Roche-Posay and Lancôme vending machine, China, 2017
Key Players – What You Need to Know
-
- Open stores to compensate declining sales per store
- Derma skincare is an essential part of store upgrade
- Spotlight on personalised products
Market Share
-
- Overview of top five beauty retailers
-
- Figure 21: Retail sales, store numbers and sales per store of the top five beauty retailers, China, 2017
- Top five retailers’ performance in 2017 vs. 2016
-
- Figure 22: Change in retail sales, store numbers and sales per store of the top five beauty retailers, China, 2016-17
- Watsons
-
- Figure 23: Watsons’ new service announcement on Weibo, China, 2017
- Figure 24: Watsons ‘ask me’ on app, China, 2017
- Sephora
-
- Figure 25: 3CE enter into Sephora store, China, 2017
- Gialen
-
- Figure 26: Gialen’s fourth generation of store prototype, China, 2017
- Mannings
-
- Figure 27: M-Studio of Mannings, China, 2017
- Figure 28: KissHop launch event, China, 2017
- Sasa
Competitive Strategies
-
- Store upgrade to introduce derma brands
-
- Figure 29: Derma Skin Care in Watsons, China, 2017
- Figure 30: Dr. Wu experience centre in Watsons, China, 2017
- AR make-up trial
-
- Figure 31: Watsons’ ‘Style Me’ AR make-up trial in-store, China, 2017
- Personalised product
-
- Figure 32: Kiehl’s apothecary preparations, China, 2017
- Figure 33: Lancôme personalised engraved lipstick, China, 2018
Who’s Innovating?
-
- Make it mine
-
- Figure 34: Sephora Mix and Play vending machine, Singapore, 2017
- Collective intelligence
-
- Figure 35: YourGoodSkin community, US, 2017
- Unmanned beauty store
-
- Figure 36: Unmanned beauty store, China, 2017
- Expert at home
-
- Figure 37: Estée Lauder Nighttime Expert, US, 2017
- What’s next after Magic Mirror?
-
- Figure 38: Beauty Hub in Sephora, France, 2017
The Consumer – What You Need to Know
-
- Weight slightly moves to online, but offline still the mainstream
- Super/hypermarkets lose visitors
- Online key players retain the same rank
- Specific designed products are most wanted in-store
- Only 18% have visited brands’ offline pop-up stores
- 25-29-year-olds are most opinionated
Products Purchased
-
- Oral care sees the largest gap between online and offline shopping
-
- Figure 39: BPC products purchased in the last six months, December 2017
- Not necessary to buy colour cosmetics offline
-
- Figure 40: Ranking of BPC products purchased in bricks-and-mortar stores in the last six months, 2017 vs 2016
- Haircare takes over first place in online shopping from facial skincare
-
- Figure 41: Ranking of BPC products purchased in online stores in the last six months, 2017 vs 2016
- Consumers in their early twenties switch to buy haircare online more
-
- Figure 42: Change of purchasing haircare in online stores, by gender and age, 2017 vs 2016
Most Visited Bricks-and-Mortar Stores
-
- Super/hypermarkets are of less importance than 2016
-
- Figure 43: Most often visited bricks-and-mortar stores in the last six months, 2017 vs 2016
- The likelihood of choosing brand counters is on par with that of super/hypermarkets
-
- Figure 44: Most often visited bricks-and-mortar stores in the last six months, December 2017
- Brand counters earn increased appeal to young women
-
- Figure 45: % of visiting brand counters at department stores/shopping malls most often, by gender and age, 2017 vs 2016
Most Visited Online Stores
-
- Top four online stores remain unchanged over 2016, not the fifth
-
- Figure 46: Most often visited online stores in the last six months, December 2017
- JD strengthens its influence further
-
- Figure 47: Most often visited online stores in the last six months, 2017 vs 2016
- Men aged 25-49 contribute to JD’s growth most
-
- Figure 48: % of visiting JD most often, by gender and age, 2017 vs 2016
Preferred Channel of Products
-
- Classic products are not most wanted in-store now
-
- Figure 49: First choice of purchasing each of the selected BPC products, December 2017
- Online stores are more suitable for following trends and saving money
-
- Figure 50: First choice of purchasing each of the selected BPC products, December 2017
- Collaborations are not must-haves either online or offline
-
- Figure 51: First choice of purchasing each of the selected BPC products, December 2017
Marketing with Technology
-
- 20% of consumers have already used AR make-up trials
-
- Figure 52: Activities taken part in in the last six months, December 2017
- 20-24-year-olds are not core visitors to pop-up stores
-
- Figure 53: Have visited brands’ offline pop-up stores in the last six months, by age and monthly personal income, December 2017
Ideal BA Features
-
- Mature BAs are more ideal than early twenties
-
- Figure 54: Ideal BA profile, by gender and age, December 2017
- Elegant workplace make-up is most preferred style of BA
-
- Figure 55: Ideal BA make-up style, December 2017
- Early twenties have different style preference by gender
-
- Figure 56: Ideal BA make-up style, by gender and age, December 2017
- Product recommendation ranks second to suggestion on skin issues
-
- Figure 57: Ideal BA expertise, December 2017
- 25-29-year-olds are comparatively more independent from BAs’ advice
-
- Figure 58: Ideal BA expertise, by gender and age, December 2017
Meet the Mintropolitans
-
- Gift sets attract Mintropolitans to spend money in-store
-
- Figure 59: First choice of purchasing each of the selected BPC products in bricks-and-mortar stores, by consumer classification, December 2017
- Seasonal product can be a differentiating driver of online shopping
-
- Figure 60: First choice of purchasing each of the selected BPC products in online stores, by consumer classification, December 2017
- Retailers’ and brands’ apps are not dispensable for Mintropolitans
-
- Figure 61: Activities taken part in in the last six months, by consumer classification, December 2017
Appendix – Market Size and Forecast
-
-
- Figure 62: Total value sales of beauty retailing, China, 2012-22
-
Appendix – Methodology and Abbreviations
-
- Methodology
- Fan chart forecast
- Abbreviations
Back to top