With the Chinese millennial emulating the lifestyle of their counterparts in the West, luxury goods market is seeing a push in the demand in the Chinese markets – both online as well as offline. Cosmetic industry is one of the most affected industries with a promise for the future. Analysts estimate that this industry is poised for a 20.8% year-on-year growth, to becoming a US$ 113.9 billion or RMB 700 billion by the year 2017.
The reasons for such a growth in this sector are many, for one, the fast pace at which the Chinese economy is developing has attracted many big brands in the world to set up their shop here in this country. In addition, the millennial is educated tech savvy, and aspires for a better lifestyle also has increased the demand for such products. Finally, the online shopping models have made a wide variety of brands and products available to the Chinese consumer; have also helped the cosmetic industry’s growth.
Analysis of the trends of the demand for various cosmetic products, clearly demonstrates the increasing demand for cosmetic products, Skin care products are the fastest growing of all the cosmetic products market. While shampoos and hair care products have seen a decline in demand, make-up products, especially eye makeup products have recorded an increase in the demand particularly in the rural and inland areas, and they are expected to continue the trend.
Cosmetics products in China
Cosmetic products intended for children are also experience a higher demand. Sport cosmetics, well sports person too, have to take god care of their physique appearance etc also these cosmetics such as anti-sweat, anti-odor, anti-bacterial are helpful for sports person they also help them prevent the loss of moisture.
Given this trend in cosmetics demand, No wonder, the anti-ageing products are experiencing a huge demand, as well! Cosmeceutials, well this is an example of how businesses are becoming smart and catering to the growing special needs of the consumers. Using unique and world-renowned Chinese herbs, Cosmeceutical products are developed, and these are experiencing a growth rate of 10%-20% in the demand trends. Keeping in view the consumers are getting health conscious, as also beauty conscious companies have started offering products such as acne ointment, acne treatment lotion for the benefit of the consumers. In addition, the environment consciousness increasing made companies develop green cosmetics which have been experiencing a huge demand in the Chinese market.
— Cosmetics China (@ChengChengchina) 27 Février 2015
Marketers are using a variety of sales medium to take these products closer to the Chinese people, a mix of traditional, as well as modern tools. Companies have been using wholesale markets, distributors, supermarkets, departmental stores, beauty parlors, drug stores, counters specially set up for cosmetic sales. Off late the online model of sales channel has been catching up- it is estimated that this model contributes to the 25% of the total sales registered in the industry- with the millennial becoming more tech savvy.
Brands Strategy for Chinese Markets:
Many international brands have flooded the Chinese market, as the economy seems promising, and also as there is a huge demand for quality products from across the world. It is interesting to note that these companies are employing a clever technique of taking over local companies, so they can get a hold of the local distribution network, brands such as L’Oreal acquired Mini Nurse, Coty bought over TJoy, and Dabao by Johnson and Johnson, also some other companies that have made a foray into Chinese market are Sephora, Sasa of France, Watson, etc.
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