A Prosperous China Beauty Market

A Prosperous China Beauty Market

Kantar Worldpanel Releases the latest Beauty Brand Footprint

 Today Kantar Worldpanel  releases the latest beauty market trend report. The report highlights the strong growth of the Chinese beauty market, with the skincare and makeup categories seeing a growth rate of 13% and 17% respectively during 2018, outperforming total FMCG.

 A China Beauty Market Brand Footprint was also released by Kantar Worldpanel which ranks the best performing beauty brands based on two metrics: the most-chosen brand for Chinese consumers, and the fast-growing brands in the Chinese market. The rankings were generated by using the CRP (Consumer Reach Point) index from Kantar Worldpanel which is an index that combines the number of buyers for a certain brand in one year (penetration) and the number of times (frequency) that the brand is chosen. This China Beauty Market Brand Ranking not only reflects the real purchase behaviours of real Chinese consumers, but also presents a clear picture of consumers’ choice to help decode potential growth opportunities in the market.

1.  Most-Chosen Brands

Pechoin, which is the only local brand that is chosen more than 10 million times, maintained its leadership position in the Chinese skincare market for the third consecutive year. Maybelline New York also remained the number one brand in the makeup market. Many well-known classic brands have maintained their appeal to consumers through constant innovation in their products and new technologies. Examples of these innovations included L’Oréal Paris’s Ampoule Mask and Maybelline New York’s Lemonade Craze Eye Shadow. Upgrading the product and brand image have also helped many local brands like Pechoin and Inoherb to find further growth opportunities. Another way which brands have grown is to leverage online and offline channels to build product popularity and extend their reach. Olay for example gained wide popularity among young consumers via their White Radiance Essence product.

 Kantar Worldpanel summarizes three key factors amongst the most-chosen brands which has enabled them to achieving strong growth while maintaining their current market dominance:

-     Innovation: Continuously innovating new products with new concepts and technologies to improve the product efficacy

-     Upgrading:  Consistently upgrading the products and brand image in responding to the market trend

-     Young-Oriented: Leveraging online and offline channels to create hot items and make the brand appeal more to young consumers

 2019 China Beauty Brand Footprint: Top 10 Most-Chosen Brands in Skincare and Makeup

© 2019 CTR Co.Ltd                                                       Source: Kantar Worldpanel Beauty, 2019            Skin Care definition: facial care and eye care, exclude hand & body, lip balm                                                                            Make up definition: face, eye, lip exclude lip balm, nail

2.  Fast-growing Brands

The disruptive growth of emerging beauty brands has become one of the most remarkable achievements in 2018. Many of these brands have been investing heavily to demonstrate their product efficacy through ingredient-level communications, which is allowing them to build an expert image and generate trust from consumers. Legend Age, JM Solution, Ray and Anne Bella are among such brands who achieved significant growth with their expertise in one field (Legend Age in Lipstick, JM Solution, Ray and Anne Bella in mask). Leveraging social media to reach more consumers can also be a way to achieve growth. Sealuxe and iLife are great examples where they have successfully utilised the WeChat channel, and the awareness of Chioture was spread by the promotion from social media’s key opinion leader (KOL). Reacting fast to the trend through launching various new products can effectively enhance brands’ attractiveness as well, evident by the popularity of local makeup brands such as Perfect Diary and Meiking.

 From the above Brand Footprint coverage, we could see that Chinese born brands are on a strong rise with massive potential growth. Consumers have changed their perception toward Chinese brands with qualified products, strong word-of-mouth endorsement and real value. Based on a joint report of Kantar and Tencent, we could see that 42% of consumers are willing to choose Chinese beauty products and 60% consumers will consider repeated purchase.

 China beauty market is fast-emerging and holds multiple ways to achieve growth. Kantar Worldpanel identifies three key factors for brands to win in such a promising but challenging market environment:

-     Demonstrate Expertise: Leverage resources to build strong products and expert image, and adopting ingredient-level communication to gain trust

-     Invest in social media: Paying efforts to form strong presence in multi-media channels, especially social media to break the limitations of traditional channels and reach more consumers

-     Disruptive speed: Reacting fast to the latest trend through accelerating the speed of launching new products to meet consumer’s constantly evolving needs

 2019 China Beauty Brand Footprint: Top 20 Fast-Growing Brands in Skin Care and Makeup

© 2019 CTR Co.Ltd                                              Source: Kantar Worldpanel Beauty, 2019            Skin Care definition: facial care and eye care, exclude hand & body, lip balm                                                                            Make up definition: face, eye, lip exclude lip balm, nail