Table of Contents
Overview
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- What you need to know
- Covered in this Report
- Subgroup definitions (by Monthly Personal Income)
Executive Summary
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- Market and competition
- The consumer
- Compared with imported brands, department store channel links closer with a prestige brand
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- Figure 1: Features of a prestige brand of facial skincare product, January 2018
- Estée Lauder, Lancôme and Shiseido have the largest amount of loyal users
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- Figure 2: Awareness and penetration of prestige brands, January 2018
- Consumers are most satisfied with sensational experiences
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- Figure 3: Satisfaction with the prestige brands most often used, by attribute, January 2018
- Emotional benefits important for prestige brands
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- Figure 4: Reasons for using a prestige brand of facial skincare products, January 2018
- Premium price is a key barrier
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- Figure 5: Barriers to using a prestige brand of facial skincare products, January 2018
- Communicating the ingredient story is a priority
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- Figure 6: Factors that encourage the purchase of prestige products, January 2018
- What we think
Issues and Insights
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- How to attract consumers to pay a premium for prestige brands?
- The facts
- The implications
- Emotional awards worth paying a premium for
- The facts
- The implications
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- Figure 7: Communication of Clarins, China, 2018
- Figure 8: Communication of La Mer and Sisley, China, 2018
- Room left to improve effectiveness perception
- The facts
- The implications
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- Figure 9: Estée Lauder Re-Nutriv Dual Infusion with black diamond truffle extract, China, 2018
Market and Competition – What You Need to Know
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- Online channel catches up with the importance of department stores
- Risk of losing consumers to beauty devices if effectiveness can’t be strengthened
Market Overview
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- Figure 10: Price tier of facial skincare products currently use, April 2017
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- Figure 11: Purchase channel of premium products, November 2016
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Market Factors
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- Easy purchase with the influx of big names via e-commerce
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- Figure 12: DARPHIN new brand launch in Tmall, China, 2018
- Self-indulgence drives purchases most
- Attention turns to ethics, especially among the affluent
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- Figure 13: Very important factors to an ethical company/brand, by consumer classification, March 2017
- Seek help from beauty devices to boost effectiveness
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- Figure 14: Attitudes towards beauty services, % of strongly agree, July 2017
Who’s Innovating?
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- China is behind global in launching prestige skincare products…
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- Figure 15: New product launches in facial skincare category, by brand price positioning, China and Global, 2017
- …but there are more new product introductions
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- Figure 16: Prestige, luxe and super luxe new product launches in facial skincare category, by launch type, China and Global, 2017
- Comparison in claims
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- Figure 17: Top 10 claims of prestige, luxe and super luxe new product launches in facial skincare category, China and Global, 2017
- Innovations worth knowing
- Targeting new theme – damaged skin ‘危肌’
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- Figure 18: Biotherm Skin Oxygen series, China, 2017
- The rise of cosmeceuticals
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- Figure 19: Bobbi Brown Remedies collection, China, 2018
- Figure 20: Kiehl's Apothecary Preparations Personalized Facial Concentrate with Complex, China, 2018
- Add oil to night skincare routine
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- Figure 21: Night oil, China, 2018
- Real petals inside
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- Figure 22: Facial skincare products with real flower petals, China, 2018
- Technology to raise the sense of rituals
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- Figure 23: Lancôme Advanced Sensitive Dual Concentrate, China, 2017
- Figure 24: Philosophy Miracle Worker Nighttime Serum, China, 2018
- Figure 25: Estée Lauder Micro-Algae Pore Minimizing Shake Tonic, China, 2017
- Hydrating with microcapsules
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- Figure 26: Facial skincare products with microcapsules, Japan and China, 2017
The Consumer – What You Need to Know
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- Offline channel is still critical for prestige brands, especially in image building
- Shiseido gains highest penetration while Estée Lauder has the most loyal users
- Skin feeling ahead of effectiveness
- Emotional factors impact but different needs across age groups
- Consumers in lower tier cities are just as likely to use prestige brands as those in tier one cities
- Hierarchy of ingredient stories
Features of Prestige Brands
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- Brand image decides the keynote
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- Figure 27: Features of a prestige brand of facial skincare product, January 2018
- Department stores an essential channel to show presence
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- Figure 28: Feature of a prestige brand of facial skincare product, by city tier, January 2018
- Imported brands have an inherent advantage
- Premium price and packaging are just supportive features
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- Figure 29: Agreement with statement ‘Its price exceeds the average price of the products in the same category’ as a feature of a prestige brand of facial skincare products, by age, January 2018
Awareness and Penetration of Prestige Brands
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- Estée Lauder is the best-known brand with almost 80% awareness
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- Figure 30: Awareness and penetration of prestige brands, January 2018
- Korean and US brands get youth’s attention
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- Figure 31: Awareness of prestige brands, by age, January 2018
- Shiseido outperforms in persuading people to try
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- Figure 32: Conversion rate of prestige brands*, January 2018
- Different user profiles of mainstream brands
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- Figure 33: Penetration of prestige brands, by age, January 2018
- Almost half of Estée Lauder users are loyal to the brand
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- Figure 34: Retention rate of prestige brands*, January 2018
- Age 25 is an important watershed for some brands
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- Figure 35: Most often used prestige brand, by age, January 2018
- Shiseido and Sulwhasoo are more successful at attracting low earners
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- Figure 36: Most often used prestige brand, by monthly personal income, January 2018
Brand Satisfaction
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- Consumers satisfied with skin feeling most, ahead of effectiveness
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- Figure 37: Overall satisfaction with the prestige brands most often used, by attribute, January 2018
- Overall levels of satisfaction are high with prestige brands
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- Figure 38: Satisfaction with the prestige brands most often used, by brand, January 2018
- Chanel story
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- Figure 39: Key drivers of overall satisfaction with Chanel, January 2018
- Shiseido story
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- Figure 40: Key drivers of overall satisfaction with Shiseido, January 2018
Reasons for Using Prestige Brands
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- Seeking a better result is the top motivation
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- Figure 41: Reasons for using a prestige brand of facial skincare products, January 2018
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- Figure 42: Estée Lauder Perfectionist Pro serum, China, 2018
- Good product result and confidence boost is an optimal combination
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- Figure 43: TURF analysis of reasons for using a prestige brand of facial skincare products, January 2018
- Early twenties are quite easily influenced by others’ recommendations
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- Figure 44: Reasons for using a prestige brand of facial skincare products, by age, January 2018
- Affluent women need prestige brands to reflect social status
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- Figure 45: Reasons for using a prestige brand of facial skincare products, high earners vs low earners (as benchmark), January 2018
Barriers to Using Prestige Brands
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- Income level differentiates most
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- Figure 46: Percentage of prestige brands non-users among all, by demographics, January 2018
- No wonder price is an overwhelming barrier
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- Figure 47: Barriers to using a prestige brand of facial skincare products, January 2018
Factors that Encourage the Purchase of Prestige Products
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- Active ingredient is more persuasive than rare ingredient
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- Figure 48: Factors that encourage the purchase of prestige products, January 2018
- Ingredient story resonates with non-users as well
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- Figure 49: Factors that encourage the purchase of prestige products, by usage, January 2018
- What factors associate with good results most?
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- Figure 50: Factors that encourage the purchase of prestige products, between better result seekers and total (as benchmark), January 2018
- What factors help brands stand out?
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- Figure 51: Factors that encourage the purchase of prestige products, between innovative product seekers and total (as benchmark), January 2018
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- Figure 52: Helena Rubenstein Re-Plasty, China
Meet the Mintropolitans
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- Mintropolitans elevate the penetration of mainstream prestige brands
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- Figure 53: Penetration of prestige brands, by consumer classification, January 2018
- Professional services are effective in attracting Mintropolitans
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- Figure 54: Reasons for using a prestige brand of facial skincare products, by consumer classification, January 2018
- Figure 55: SPA services for Sisley VIP Club members, China
- Mintropolitans want to hear more about advanced processing technique
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- Figure 56: Factors that encourage the purchase of prestige products, by consumer classification, January 2018
Appendix – Methodology and Abbreviations
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- Methodology
- Further Analysis – TURF
- Abbreviations
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