Managing Skin Conditions (Responding to COVID-19) - China - May 2020

OVERVIEW
What you need to know
Key issues covered in this Report
Report scope
EXECUTIVE SUMMARY
Market and competition
Impact of COVID-19 on managing skin conditions
Long-term impact of COVID-19 will be limited
Figure 1: Short, medium and long-term impact of COVID-19 on managing skin conditions, May 2020
The consumer
Similar skin issues experienced compare to previous years
Figure 2: Skin conditions experienced in the last six months, April 2020 vs November 2017
Substantial market opportunities for skin management solutions
Figure 3: Treatment used in the last six months – average across different skin issues, April 2020
Low price sensitivity suggests consumers are unlikely to cut spending after COVID-19
Figure 4: Selecting factors of speciality skincare products, April 2020
Half of consumers spent more on facial skincare products than six months ago
Figure 5: Time and money spent on managing skin conditions, April 2020
Multiple ways used by consumers to get information on skincare
Figure 6: Information source of skincare, April 2020
Adding more steps in skincare routines brings potential in product segmentation
Figure 7: Skincare routine preferred, by age and gender, April 2020
What we think
THE IMPACT OF COVID-19 ON MANAGING SKIN CONDITIONS
Figure 8: Short, medium and long term impact of COVID-19 on managing skin conditions, May 2020
Opportunities and Threats
Speciality skincare prove its necessity during the outbreak
Transferring offline sales advisors to online connection
Opportunities to mask-face related problems
Figure 9: HomeFacialPro claim on dealing with facemasks, China
Figure 10: 3M’s Nexcare acne sticker in dealing facemasks
Impact on the market
Minimum impact from COVID-19 in the short term with opportunities ahead
Shifts in consumer behaviour
Choosing domestic brands as alternatives
Dry/itchy skin and acne increased during the outbreak
Figure 11: Skin conditions during the outbreak – “I didn't have this before the outbreak, but now i have”, April 2020
How COVID-19 will affect key consumer segments
Key consumer segments
Figure 12: Skin conditions during the outbreak – “I didn't have this before the outbreak, but now i have”, April 2020
How COVID-19 will reshape the industry
Consumers hesitate to try new products during the outbreak
Impact on the marketing mix
Add heritage in domestic brands to enhance the natural ingredient
Figure 13: Xiuben Chinese medicine skincare sets, China
Assistance in the fight of COVID-19
Figure 14: La Roche-Posay marketing poster, China
Figure 15: Avène marketing Weibo
Safety concern rises, indicating the future way of innovation focus
COVID-19: China context
Figure 16: Accumulative confirmed cases of COVID-19 in China, January to May 2020
Figure 17: Status of returning to work, China, March, April and May 2020
ISSUES AND INSIGHTS
Taking a step further on natural organic ingredients on the basis of proven safety
The facts
The implications
Figure 18: Darphin smoothing serum, China, 2020
Figure 19: Jurlique brand story
Opportunities for speciality skincare brands to expand its products
The facts
The implications
Figure 20: FaceGym products, UK
Figure 21: Products from Omorovicza, China
Savvy sales advisors are the competitive assets of speciality skincare brands
The facts
The implications
MARKET AND COMPETITION – WHAT YOU NEED TO KNOW
China lags behind on dermatologically tested products
Natural ingredients are more favourable than chemical
Opportunities for pharmaceutical and baby personal care brands
MARKET OVERVIEW
Figure 22: Selected claims of new product launches in facial skincare category, China vs Global, 2019
Figure 23: Selected claims of new product launches in facial skincare category, China, 2019 vs 2018
MARKET FACTORS
Stricter rules on claim
Less about the chemical ingredients included
Blemished skin versus allergic skin 
COMPETITIVE STRATEGIES
Combine high-tech solutions to test skin condition
Figure 24: La Roche-Posay’s Effaclar Spotscan
The bridge between medical companies and beauty products
Figure 25: CFDA certificates for medical skincare products
Figure 26: Products from medical company, China, 2020
Baby personal care brands join the competition
Figure 27: Mama&Kids Oligo series
Launch botanical sub-brands for youth’s skin condition
Figure 28: MyClarins product sets
Figure 29: Spring Summer product set
Emerging of skin management centres
WHO’S INNOVATING?
‘For sensitive skin’ saw a rise in new product claims in the past three years
Figure 30: Top 15 claims of new skincare products launched, China, 2017-19
Dermatologically tested products with probiotics 
Figure 31: Dermatologically tested products, South Korea, 2019
Spa inspired products based on herbal ingredients for sensitive skin
Figure 32: Spa inspired products, France and US, 2019
Products specifically targeting facemask related skin issues
Figure 33: Products targeting mask related issues, China, 2020
Devices focused on lifestyle solution for skin conditions
Figure 34: Clarisonic acne removal device, China
THE CONSUMER – WHAT YOU NEED TO KNOW
Acne and enlarged pores continue to rank as top concerns
Consumers prefer to manage their health condition from within
Natural ingredients is the top selection factor
Consumers are spending more on skincare products
Multiple sources were used to gather information on skincare
Consumers lean towards products with long term cure
SKIN CONDITIONS EXPERIENCED 
Enlarged pores and acne are the top skin concerns overtime
Figure 35: Skin conditions experienced in the last six months, April 2020 vs November 2017
Females suffer more from dark spots and thin skin/couperose
Figure 36: Skin conditions experienced in the last six months, by gender, April 2020
Younger consumers concern about acne while mature consumers worry about dark spots
Figure 37: Skin conditions experienced in the last six months, by age, April 2020
Figure 38: Erbaviva’s anti-acne gel, China
Consumers in the South suffer more from enlarged pores
Figure 39: Skin conditions experienced in the last six months, by region, April 2020
TREATMENT USED
Lifestyle modification is the top treatment used
Figure 40: Treatment used in the last six months – average across different skin issues, April 2020
Allergies need emergency treatment while other skin conditions are a long-term concern
Figure 41: Treatment used in the last six months, April 2020
Younger consumers avoid makeup for acne
Figure 42: Treatment used in the last six months for dealing with acne, by age, April 2020
Figure 43: Acne solution adjusting lifestyle
SELECTING FACTORS OF SPECIALITY SKINCARE PRODUCTS
Natural ingredients wins over consumers
Figure 44: Selecting factors of speciality skincare products, April 2020
Figure 45: Products with natural ingredients
Consumers tend to judge by themselves rather than follow recommendations
‘Suitable for sensitive skin’ claim is not a shortcut in decision-making process
Price is the least consideration factor when people suffer from skin issues
Younger consumers trust dermatologists while older consumers looking for easy application
Figure 46: Selecting factors of speciality skincare products, by age, April 2020
Frequent spa visitors trust more professional advice
Figure 47: Time and money spent on managing skin conditions, by consumer type, April 2020
Affluent consumers are looking for rapid effects
Figure 48: Selecting factors of speciality skincare products, by monthly personal income, April 2020
TIME AND MONEY SPENT ON MANAGING SKIN CONDITIONS
Spending more on facial skincare products
Figure 49: Time and money spent on managing skin conditions, April 2020
Opportunity of growth for male consumers
Figure 50: Time and money spent on managing skin conditions, male, April 2020
INFORMATION SOURCE OF SKINCARE
Variation of each source’s influence is marginal
Figure 51: Information source of skincare, April 2020
Sales in offline stores are the key source of information
Figure 52: Information Source - TURF Analysis – April 2020
Consumers who are frequent spa visitors prefer offline advice
Figure 53: Information source of skincare, frequent spa users, April 2020
Professional channels are the key to attract affluent consumers
Figure 54: Information source, by monthly personal income, April 2020
Social media sites and dermatologists gain trust from younger consumers
Figure 55: Information source, by age, April 2020
ATTITUDES TOWARDS MANAGING SKIN CONDITIONS
Affluent consumers prefer professional spa products
Figure 56: Skincare products preferred, by age and gender, April 2020
Speciality skincare users prefer international brands
Figure 57: Origin of speciality skincare products preferred, by usage of speciality skincare products, April 2020
International brands are winning, but domestic brands have potential among the younger generation
Figure 58: Origin of speciality skincare products preferred, by age, April 2020
Men are looking for fast results while women seek long-term treatment from within
Figure 59: Type of skincare products preferred, by gender, April 2020
Younger consumers are more cautious towards experiencing new
Figure 60: Preferred skincare products/services, by gender, April 2020
No additives is a must
Figure 61: Additives in skincare products, by gender, April 2020
Opportunity for more segmentation in skincare
Figure 62: Skincare routine preferred, by age and gender, April 2020
Figure 63: La prairie launching ‘2nd time facial cleansing’
MEET THE MINTROPOLITANS
‘For sensitive skin’ attracts Mintropolitans
Figure 64: Selecting factors, by consumer classification, April 2020
Mintropolitans use more information sources to get information
Figure 65: Information source, by consumer classification, April 2020
Mintropolitans believe in adding more steps in skincare routines
Figure 66: Skincare routine preferred, by consumer classification, April 2020
APPENDIX – METHODOLOGY AND ABBREVIATIONS
Methodology
Abbreviations