Colour Cosmetics - China - August 2020

OVERVIEW
What you need to know
Key issues covered in this Report
Report scope
Excluded
Subgroup definition (by monthly personal income)
EXECUTIVE SUMMARY
The Market 
Figure 1: Total value sales of colour cosmetics market, China, 2015-25
Impact of COVID-19 on colour cosmetics
Figure 2: Short, medium and long-term impact of COVID-19 on colour cosmetics
Opportunities and threats 
Opportunities for domestic brands to take the leadership in guiding consumption 
Product designs should enhance the indulgence of collecting
It’s a critical time to ease safety concerns of colour trials 
Sell in mini to conquer spending squeeze 
Companies and Brands
Figure 3: Leading manufacturers’ share in value sales of colour cosmetics, China, 2018-19
The Consumer
Prosperity from increased makeup adoption and frequency across ages
Figure 4: Use of makeup in the last six months, 2019 vs 2020
Figure 5: Makeup habit, 2019 vs 2020
Spend more time and money, try more and buy more
Figure 6: Behaviour and spending change, February 2020
Enthusiasts as the largest segment and the main engine for market growth
Figure 7: Consumer segmentation based on their attitudes towards makeup, February 2020
An increase in demand for face colours over 2019
Figure 8: Use of face makeup, February 2020
Colour expressiveness could activate mature eye and eyebrow makeup items
Figure 9: Use of point makeup, February 2020
Offline and colour professionalism is essential for future competition
Figure 10: Methods to aid point makeup selection, February 2020
Domestic brands hold 27% consumers’ attention
Figure 11: Brand preference, February 2020
What we think
ISSUES AND INSIGHTS
Facilitate sharing and self-expression for all ages
The facts
The implications
Figure 12: Example of linking lip looks with personalities, China, 2020
Figure 13: Examples of multi-use colour cosmetic pen, Canada and Japan, 2029-20
Build face base makeup excel in both makeup and skincare 
The facts
The implications
Figure 14: Example of setting spray products with enhanced skincare feature, China, 2020
Offline channels reinvented
The facts
The implications
THE MARKET – WHAT YOU NEED TO KNOW
Only single-digit growth in 2020 but will restore in 2021
Strong consumer demands and brands’ fast responses secure a quick recovery
Lip makeup took the heaviest hit by COVID-19
MARKET SIZE AND FORECAST
Exceed RMB40 billion in 2020
Figure 15: Total value sales of colour cosmetics market, China, 2015-25
Impact of COVID-19 on colour cosmetics
MARKET FACTORS
Demand of beauty is strong and resilient
Shortened online purchase cycle
Brand library continues to expand
Build the offline experience together
Figure 16: Makeup collection store, China, 2020
Capitals supporting future growth
MARKET SEGMENTATION
Figure 17: Total value sales and growth of colour cosmetics market, by segment, China, 2019-20
Eye makeup will lead market growth in 2020
Face makeup remains steady with the largest share
Growth of lip segment will ease
Nail segment benefits from reduced nail salon visits
KEY PLAYERS – WHAT YOU NEED TO KNOW
Perfect Diary enlists top 10
Competing over attentions
MARKET SHARE
L’Oréal further their leading place in 2019
Figure 18: Leading manufactures' share in value sales of colour cosmetics, China, 2018 and 2019
Figure 19: Examples of L’Oréal hot selling and new launched products, China, 2019
Remarkable growth achieved by Perfect Diary
Figure 20: Examples of Perfect Diary hot selling products, China, 2019-20
AmorePacific closing and refreshing offline stores
COMPETITIVE STRATEGIES
Co-create with users to secure satisfaction and loyalty
Trials sample distributed online
Sell small to sell more
Figure 21: Examples of smaller sized products, China, 2020
Selling as a game
WHO’S INNOVATING?
More new launches in point makeup in 2019
Figure 22: New launched colour cosmetic products, by sub-category, China, January 2018-June 2020
New products outrun range extension for lip colours
Figure 23: New launched lip makeup products, by launch type, China, January 2018-June 2020
Ethicalness stirring eye colour cosmetics with more Eco and Clean
Figure 24: Ethical claims of new launched eye shadows, China, January 2018-June 2020
Figure 25: Examples of glitters with enhanced biodegradable image, USA and Spain, 2019-20
Foundations further in functional and product tested claims
Figure 26: Top five claims categories of new launched foundations/fluid illuminators, China, January 2018-June 2020
Figure 27: Top growing functional and product tested claims of new launched foundations/fluid illuminators, China, January 2018-June 2020
Figure 28: Examples of foundations launched by professional skincare brands, China, 2020
Built for on-the-go
Figure 29: New launched colour cosmetic products with ‘on-the-go’ claim, by sub-category, China, January 2018-June 2020
Figure 30: Examples of note-worthy on-the-go makeup products, South Korea, USA, and Japan, 2019-20
Built with tools for elegant convenience
Figure 31: Examples of makeup products facilitating an elegant usage, China and UK, 2019-20
Colour with added sensorial value
Figure 32: Examples of lip and face colours with a sensorial appeal, Japan and USA, 2019-20
Beauty jewel to encourage collecting
Figure 33: Examples of beauty jewel, China, 2020
THE CONSUMER – WHAT YOU NEED TO KNOW
COVID-19 interrupted usage after a year of remarkable increase
Colour cosmetics riding on consumers’ great interests
One third of consumers are Enthusiasts 
Blushers rise in ranking among face makeup used in 2020
Offline environment and professional services prioritised over online 
Pursuing delicate usage experience and looks
USE OF MAKEUP
A surge of makeup wearing in 2020
Figure 34: Use of makeup in the last six months, 2019 vs 2020
Figure 35: Makeup habit, 2019 vs 2020
Females aged 25-39 are now the most frequent users 
Figure 36: Use of makeup in the last six months – ‘yes’, by age, 2019 vs 2020
Figure 37: Makeup habit, by age, February 2020
Mature women in the market worth the attention
COVID-19 reduced usage across makeup segments
Figure 38: Change of selected beauty products usage before vs after COVID-19 outbreak, May 2020
BEHAVIOUR AND SPENDING CHANGE
Face makeup still represents the greatest trade-up interests
Figure 39: Behaviour and spending change, February 2020
Limited brand loyalty further diluted
Figure 40: Behaviour change – number of brands tried for the first time, by age, February 2020
Information penetrates city tiers, but brands lagging
Figure 41: Behaviour and spending change – ‘become more’, by city tier, February 2020
ATTITUDES TOWARDS MAKEUP
Time to highlight fresh-keeping designs
Figure 42: Attitudes towards makeup, February 2020
Young females highlight self-expression
Figure 43: Selected attitudes towards makeup – ‘any agree’, by age, February 2020
Five groups of makeup users
Figure 44: Consumer segmentation based on their attitudes towards makeup, February 2020
Figure 45: Attitudes towards makeup – ‘strongly agree’, by consumer segmentation, February 2020
Figure 46: Makeup habit and look preference, by consumer segmentation, February 2020
Figure 47: Average types of makeup used, by consumer segmentation, February 2020
USE OF FACE MAKEUP
Blusher ranks third in usage rate
Figure 48: Use of face makeup, February 2020
Younger females are more engaged in face contouring
Figure 49: Use of face makeup, by age, February 2020
Setting spray should differentiate from face powder in benefits
USE OF POINT MAKEUP
Lipstick, eyeliner, and eyebrow pencil/powder are top three
Figure 50: Use of point makeup, February 2020
Younger females demanding more colour expressiveness 
Figure 51: Net use of point makeup for different areas, by age, February 2020
Figure 52: Use of point makeup for eye and eyebrow, by age, February 2020
Figure 53: Example of eyeliners with vibrant colours, China, 2019-20
30-39s need a further boost in using eye colour
METHODS TO AID POINT MAKEUP SELECTION
Bricks-and-mortar stores remain the destination for trials
Figure 54: Methods to aid point makeup selection, February 2020
More intuitive try-on results demanded online but AR is not the only way
Colour diagnosis for all age groups
Figure 55: Demanded customised solutions, by age, February 2020
Enthusiasts eager to be engaged by brands
Figure 56: Methods to aid point makeup selection, gaps among consumer segments vs total (as benchmark), February 2020
MAKEUP ATTITUDES AND HABITS
Delicate tools for delicate looks
Figure 57: Makeup look and tool preference, February 2020
27% prefer domestic brands
Figure 58: Brand preference, February 2020
Figure 59: Brand preference, by consumer segmentation, February 2020
‘Long-lasting to omit touch-up’ is a false proposition to over half
Figure 60: Long-lasting and touch-ups, February 2020
Figure 61: Examples of face colour cosmetics with portable designs, US and China, 2019
MEET THE MINTROPOLITANS
Sell in mini to inspire creativity
Figure 62: Consumer segmentation based on their attitudes towards makeup, by consumer classification, February 2020
Figure 63: Gaps on the agreement of selected attitudes towards makeup between Mintropolitans vs Non-Mintropolitans (as benchmark), February 2020
Build a professional colour lab
Figure 64: Methods to aid point makeup selection, gap between Mintropolitans vs non-Mintropolitans (as benchmark), February 2020
APPENDIX – MARKET SIZE AND FORECAST
Figure 65: Market value of colour cosmetics, China, 2015-25
APPENDIX – MARKET SEGMENTATION
Figure 66: Value sales of colour cosmetics market, by segment, China, 2015-19
Figure 67: Value share of colour cosmetics market, by segment, China, 2015-19
Figure 68: Annual value growth rate of colour cosmetics market, by segment, China, 2015-19
APPENDIX – METHODOLOGY AND ABBREVIATIONS
Methodology
Abbreviations