Growing beauty consciousness and an increase in disposable income has provided rapid expansion; however, 2013 saw a slowdown in fortune...
Japan’s Yano Research Institute has announced a selection of results from its 2014 survey of China’s cosmetics market. According to the survey, growing beauty consciousness and an increase in disposable incomes has enabled the market to expand rapidly at about 10% annually over recent years. However, 2013 saw a slowdown and the market grew only 8.3% on 2012 to reach RMB1,331bn on a manufacturer’s shipment basis.
The gradual shift to a domestic demand-led economy is expected to result in more modest growth rates than those seen historically. For 2014, growth to RMB1,433bn is forecast, up 7.6% on 2013. Product sectors that are showing growth in China include natural and organic products, and also whitening, anti-ageing, and moisturising products. Make-up products that use mineral powders are gaining traction and there is growing interest in damage control for hair care products. Yano also foresees growing opportunities for products designed for men. Pricing continues to be important, especially as interest in modern cosmetics has spread beyond those who can easily afford luxury brands.
Internet shopping and mail order are rapidly growing, just as they are in other Asian markets. As a development of this, mobile marketing is also expected to play an increasing role. The growing numbers of Chinese tourists have become major cosmetics shoppers in both Japan and Korea. Their experience of the products they buy and the increasing presence of imported brands of all price levels will both prove factors that influence the development and growth of China’s cosmetic appetite.