Facial Skincare - China - August 2014

INTRODUCTION
Products covered in this report:
Methodology
Abbreviations
Definitions
EXECUTIVE SUMMARY
A fast evolving market with heightened level of competition and consumer sophistication
Figure 1: Best- and worst-case forecast of China retail value sales of facial skincare, 2009-19
Solid skincare regime and repertoire behaviour
Figure 2: Repertoire behaviour, by category, June 2014
An holistic approach
Figure 3: Current skin problems, June 2014
Figure 4: Skincare approach preference, healthy lifestyle vs premium skincare products, June 2014
I want it all
Figure 5: Repertoire of current skin problems, June 2014
What we think
ISSUES AND INSIGHTS
Solid skincare regime and repertoire behaviour
The facts
The implications
Forces behind the repertoire behaviour
The facts
The implications
An holistic approach
The facts
The implications
I want it all
The facts
The implications
TREND APPLICATIONS
Influentials
Access Anything Anywhere
MARKET DRIVERS AND DYNAMICS
Key points
Market drivers: Growing disposable income
Figure 6: Per capita income level in rural and urban, China, 2008-13
Market drivers: E-commerce revolution powering consumption
Market drivers: Extreme weather and pollution create more opportunities
Figure 7: Clinique Even Better City Block Anti-Pollution SPF40/PA+++, q1 2014
Market dynamics: Consumer repertoire behaviour
Market dynamics: Consumers are promotion-driven
Market dynamics: Shopping without borders
Market dynamics: Legislative change
MARKET SIZE AND FORECAST
Key points
A fast evolving market with heightened level of competition and consumer sophistication
Figure 8: China facial skincare market, value sales, 2009-13
Figure 9: Best- and worst-case forecast of China retail value sales of facial skincare, 2009-19
Intensive competition
Strong growth in anti-ageing
Figure 10: Best- and worst-case forecast of China retail value sales of anti-ageing facial skincare, 2009-19
The facial mask sensation
Figure 11: Best- and worst-case forecast of China retail value sales of facial mask skincare, 2009-19
Forecast methodology
SEGMENTATION AND MARKET SHARE
Key points
Moisturising remains the primary segment
Figure 12: Value market share, by segment, 2009-13
Figure 13: Value market share, by segment, 2013
International and national brands blossom together
Figure 14: Company market share, by value, 2011-13
WHO’S INNOVATING?
Key points
Everyone is looking for multiple benefits
Figure 15: New product launches, by top category in the facial skincare market in China, 2009-13
Figure 16: Olay Total Effects 7 in One range, Q3 2013
Energy boost
Figure 17: Estée Lauder Nutritious Rosy Prism range: essence and cc cream, Q1 2014
Figure 18: Lancôme Énergie de Vie range, Q1 2014
Figure 19: Origins GinZing Energy-Boosting moisturizer, Q1 2014
Figure 20: Yue Sai Vitalize Ganoderma Youth Preserving Elixir, Q1 2014
Figure 21: Sulwhasoo Harmonizen Regenerating Cream, Q4 2013
From micro plastic surgery to V-shaper serum
Figure 22: Dior Capture Lift Ultra-Stretch Remodelling Crème, Q2 2013
Figure 23: Clarins Shaping Facial Lifting Total V contouring, June 2014
Figure 24: L’Oréal Paris – L’Oréal Paris revitalift v shaper serum, Q2 2014
Facial mask boom continues
Herbal origins
Figure 25: Tong Ren Tang facial mask ancient herbal extract range, May 2014
Figure 26: Ming Cao She Yuan facial mask product in China Beauty Exhibition, May 2014
Food nutrition
Figure 27: Bei Da Huang’ s Dong Bei Mo Yang ‘s a golden harvest range: soybean moisturising mask, May 2014
Figure 28: faith in face is the latest must-have mask based on hydrogel technology, Q4 2013, Hong Kong
Storytelling and packaging
Figure 29: My Beauty Diary, 10th anniversary variants, Q4 2013
Figure 30: Eye gel patch from Etude House and Watsons’ own-label facial mask, 2013-14
New era for smart beauty
Figure 31: Clarisonic press release, 2014
My Beauty Box on WeChat
COMPANIES AND BRANDS
L’Oréal
Figure 32: L’Oréal annual report, 2013
Figure 33: L’Oréal skincare portfolio in China, 1992-2013
Shiseido
Figure 34: Shiseido company finances, March 2013
Figure 35: Shiseido skincare portfolio in China, 1981-2013
Procter & Gamble
Figure 37: P&G skincare portfolio in China, 1989-2013
Jala Group
Figure 38: Jala skincare portfolio in China, 1997-2013
THE CONSUMER – CURRENT SKINCARE PROBLEM
Key points
Most Chinese women concerned with dull skin
Figure 39: Current skin problems, June 2014
Anti-ageing concerns on the rise
Figure 40: Current skin problems, 2013 vs 2014
Figure 41: Artistry Creme LuXury collection, Q2 2012
Many women have multiple skin problems
Figure 42: Repertoire of current skin problems, June 2014
Figure 43: Women with six or more current skin problems, by monthly personal income, June 2014
Recognising disparity between cities
Figure 44: Repertoire of current skin problems, by cities, June 2014
THE CONSUMER – USAGE BEHAVIOUR
Key points
Usage
A solid skincare regime
Figure 45: Product usage, June 2014
Prevalence of face mask
Figure 46: Non-users of face asks or peels, by age, June 2014
Income defines level of sophistication
Figure 47: Usage behaviour, by age and income, June 2014
Repertoire behaviour
Most consumers switch between several familiar brands in all skincare categories
Figure 48: Repertoire behaviour, by category, June 2014
Higher income earners exhibit strong repertoire behaviour in many categories
Figure 49: Repertoire behaviour, by monthly personal income, June 2014
Redefining loyalty
Figure 50: Repertoire behaviour, June 2014
THE CONSUMER – WHITENING PRODUCTS
Key points
Whitening remains the ultimate beauty
Figure 51: Usage of whitening products, June 2014
New era of whitening
Figure 52: Additional benefits sought for whitening, June 2014
Figure 53: Additional benefits sought for whitening products, by income, June 2014
Figure 54: Usage of whitening products, by skin type, June 2014
Figure 55: Haruki whitening range, 2012
THE CONSUMER – ANTI-AGEING PRODUCTS
Key points
Anti-ageing: start early
Figure 56: Usage of anti-ageing products, June 2014
Figure 57: Usage of anti-ageing products, by age, June 2014
Age and income factors
Figure 58: Usage of anti-ageing products, by demographics, June 2014
Multiple solution
Figure 59: Additional benefits sought for anti-ageing products, June 2014
THE CONSUMER – CHANNEL USAGE
Key points
Premium channel takes the crown
Figure 60: Purchase channels for facial skincare and colour cosmetics, June 2014
Figure 61: Purchase channels, by income, June 2014
Taobao/Tmall leads online shopping
Figure 62: Purchase channels online, June 2014
Figure 63: China online retailer market shares, by value, 2013
Channel integration
Figure 64: Repertoire of purchase channels, June 2014
Consistent shopping experience for higher income earners
Figure 65: Repertoire of purchase channels, by income, June 2014
Channel preferences among cities
Figure 66: Purchase channel, by cities, June 2014
THE CONSUMER – BRAND PREFERENCES
Key points
International brands versus local brands
Figure 67: Brand preferences, June 2014
Japanese versus Korean
Figure 68: Laneige Snow BB Soothing Cushion SPF 30+ PA++, Q3 2013
Higher income groups’ savviness
Figure 69: Facial moisturiser brand preference, June 2014
Figure 70: Facial serum brand preference, June 2014
Figure 71: Facial cleanser, June 2014
Figure 72: Brand preferences in facial moisturisers, by salon visits, June 2014
Availability is key to recruit shoppers without brand origin preferences
Figure 73: Brand preferences, by purchase channel, June 2014
City differences
Figure 74: Facial moisturiser brand preferences, by cities, June 2014
THE CONSUMER – USAGE AND BUYING HABITS
Key points
The power of word-of-mouth
Figure 75: Usage and purchase behaviour, June 2014
Figure 76: Usage and purchase behaviour, by age group, June 2014
Figure 77: Kimiss app, March 2014
Forces behind the repertoire behaviour
Figure 78: Factors behind switching brands, June 2014
The sophisticated switchers
Figure 79: Factors behind switch, by income group, June 2014
Figure 80: Clinique Even Better Essence range, Q4 2013
Figure 81: P&G’s Dongfangjidao range, Q2 2013
The unsatisfied switchers
Figure 82: Factors behind switching, by age group, June 2014
The deal seekers
Figure 83: Factors behind switching, June 2014
Figure 84: Factors behind switching, by income groups, June 2014
The beauty conscious
Figure 85: Usage and purchase behaviour, June 2014
Figure 86: Factors behind switching, by income group, June 2014
Figure 87: Factors behind switching, by age, June 2014
THE CONSUMER – ATTITUDES TOWARDS BEAUTY LIFESTYLES
Key points
Micro plastic surgery, is it a future trend?
Figure 88: Skincare approach preference, micro plastic surgery vs skincare products using scientific advancements, June 2014
Figure 89: Lancôme Visionnaire Advanced Skin Corrector, q2 2014
Nothing can beat a healthy lifestyle
Figure 90: Skincare approach preference, healthy lifestyle vs premium skincare products, June 2014
Will home skincare devices challenge the beauty salon market?
Figure 91: Skincare approach preference, skincare devices vs beauty salons, June 2014
Holistic versus Diagnostic: East meets West
Figure 92: Skincare approach preference, traditional Chinese medicine vs cosmeceuticals, June 2014
Figure 93: Skincare approach preference, oral cosmetics vs food therapy, June 2014
I want it all
Figure 94: Skincare approach preference, June 2014
APPENDIX – CURRENT SKINCARE PROBLEM
Figure 95: Current skin problems, June 2014
Figure 96: Most common current skin problems, by demographics, June 2014
Figure 97: Next most common current skin problems, by demographics, June 2014
Figure 98: Repertoire of current skin problems, June 2014
Figure 99: Repertoire of current skin problems, by demographics, June 2014
APPENDIX – USAGE BEHAVIOUR
Figure 100: Repertoire behaviour, June 2014
Figure 101: Repertoire behaviour – Make-up remover, by demographics, June 2014
Figure 102: Repertoire behaviour – Facial cleanser, by demographics, June 2014
Figure 103: Repertoire behaviour – Facial toner/softener, by demographics, June 2014
Figure 104: Repertoire behaviour – Facial moisturiser/emulsion/lotion, by demographics, June 2014
Figure 105: Repertoire behaviour – Facial serum/essence, by demographics, June 2014
Figure 106: Repertoire behaviour – BB/CC cream, by demographics, June 2014
Figure 107: Repertoire behaviour – Block sheer, by demographics, June 2014
Figure 108: Repertoire behaviour – Face mask or peels, by demographics, June 2014
Figure 109: Repertoire behaviour – Eye cream/gel, by demographics, June 2014
Figure 110: Repertoire behaviour – Facial oils, by demographics, June 2014
Figure 111: Repertoire behaviour – Lip balm, by demographics, June 2014
APPENDIX – WHITENING PRODUCTS
Figure 112: Usage of whitening products, June 2014
Figure 114: Current skin problem, by usage of whitening products, June 2014
APPENDIX –WHITENING PRODUCTS – CONSIDERATION
Figure 115: Additional benefits sought for whitening, June 2014
Figure 116: Most popular additional benefits sought for whitening, by demographics, June 2014
Figure 117: Next most popular additional benefits sought for whitening, by demographics, June 2014
APPENDIX – ANTI-AGEING PRODUCTS
Figure 118: Usage of anti-ageing products, June 2014
Figure 119: Usage of anti-ageing products, by demographics, June 2014
Figure 120: Current skin problems, by usage of anti-ageing products, June 2014
APPENDIX – ANTI-AGEING – CONSIDERATION
Figure 121: Additional benefits sought for anti-ageing products, June 2014
Figure 122: Most popular additional benefits sought for anti-ageing products, by demographics, June 2014
Figure 123: Next most popular additional benefits sought for anti-ageing products, by demographics, June 2014
APPENDIX – BEHAVIOUR – CHANNEL USAGE
Figure 124: Purchase channels, June 2014
Figure 125: Most popular purchase channels, by demographics, June 2014
Figure 126: Next most popular purchase channels, by demographics, June 2014
Figure 127: Other purchase channels, by demographics, June 2014
Repertoire analysis
Figure 128: Repertoire of purchase channels, June 2014
Figure 129: Repertoire of purchase channels, by demographics, June 2014
APPENDIX – ATTITUDE – BRAND PREFERENCES
Figure 130: Brand preferences, June 2014
Figure 131: Brand preferences – Facial cleanser, by demographics, June 2014
Figure 132: Brand preferences – Facial toner/softener, by demographics, June 2014
Figure 133: Brand preferences – Facial moisturiser/emulsion/lotion, by demographics, June 2014
Figure 134: Brand preferences – Facial serum/essence, by demographics, June 2014
Figure 135: Brand preferences – BB cream/CC cream, by demographics, June 2014
Figure 136: Brand preferences – Block sheer, by demographics, June 2014
Figure 137: Brand preferences – Face mask or peels, by demographics, June 2014
Figure 138: Brand preferences – Eye cream/gel, by demographics, June 2014
APPENDIX – USAGE AND BUYING HABITS
Figure 139: Usage and purchase behaviour, June 2014
Figure 140: Most popular usage and purchase behaviour, by demographics, June 2014
Figure 141: Next most popular usage and purchase behaviour, by demographics, June 2014
APPENDIX – ATTITUDES TOWARDS BEAUTY LIFESTYLES
Figure 142: Skincare approach preferences, June 2014
Figure 143: Skincare approach preferences – Micro plastic surgery, by demographics, June 2014
Figure 144: Skincare approach preferences – Using food therapy to enhance skin condition, by demographics, June 2014
Figure 145: Skincare approach preferences – Going to a beauty salon for facial care services, by demographics, June 2014
Figure 146: Skincare approach preferences – Cosmeceutical skincare products from other countries, by demographics, June 2014
Figure 147: Skincare approach preferences – All-in-1 skincare products, by demographics, June 2014
Figure 148: Skincare approach preferences – To improve skin condition by leading a healthy lifestyle, by demographics, June 2014