5 Trends Dominating China’s Skincare and Cosmetics Industry in 2021 and Beyond
Photo by Pexels.
Opportunities for British skincare and cosmetics brands in China are significant. Savvy businesses won’t take the thriving sector at face value though – trends such as products aimed at men and those made with natural ingredients offer exciting scope for cross-border success.
It’s the ultimate glow-up. China has moisturised and made-up its way to become the second-largest cosmetics market in the world.
Placed just after the U.S. in terms of revenue and consumption value, it’s also one of the fastest-growing regions among major skincare markets.
And while its consumers have uniquely Chinese preferences and requirements, there is a strong appetite for British brands. The China-British Business Council recently announced that cosmetics was a key market opportunity for British business looking at cross-border trade.
“In sectors where quality or safety are important, such as cosmetics… foreign brands retain a significant lead in market share.”
It’s a position market and consumer data specialist Statista agrees with.
“China’s appetite for cosmetic products has a distinct global flavour – more than a third of the beauty market in China are imported goods.”
Those from the U.K. account for a significant proportion of this. And that significant proportion is… significant.
Just how big is China’s skincare and cosmetics market?
Photo by Content Pixie at Unsplash.
The retail trade revenue of cosmetics in China is forecasted to surpass 400 billion yuan by 2023. More than 70% of those sales are expected to come from e-commerce channels, largely via Alibaba’s Tmall and JD.com.
COVID-19 and its associated impacts haven’t dampened the sector’s growth, either. More than 55% of Chinese consumers have increased their spending on cross-border cosmetics and skincare since the start of the pandemic, according to research by Westwin.
The NPD Group reports similar findings.
“China’s prestige beauty e-commerce sales reached $710 million in August 2020. That represents a 61% increase over the same time period last year.”
There are exciting opportunities for British skincare and cosmetics brands to enter the Chinese market, but it’s a rapidly changing landscape. In 2021 and beyond, these are the key trends that will drive consumer spending.
1. Male-specific skincare and cosmetics
Photo by Alysa Bajenaru at Unsplash.
Already the biggest in the world, the Chinese men’s facial skincare market is forecast to hit $1.9 billion this year, and $2.8 billion by 2025, research firm Mintel estimates.
Forget merely post-shave products and guy-liner, though. These consumers want everything from skincare masks to sun protection. Mintel data shows that in 2020, Chinese men use 2.3 types of facial skincare products on average, up from 1.7 types in 2017.
Daily use of face marks due to the Pandemic have led to breakouts and skin problems. This is resulting in growth in products formulated to address such concerns. For example, those that minimise mask chafing and prevent and treat maskne.
Marketing-wise, while men’s use of cosmetics in China is generally culturally acceptable, it should be discrete.
“When it comes to men’s beauty, Asia is by far leading the way.” Shane Carnell-Xu, co-founder of a UK-based Shakeup Cosmetics.
According to the Jing Daily, in an active post, titled What do you think of men wearing makeup, on the Chinese Q&A site Zhihu with over 500,000 comments, many stated that the highest standard for men’s makeup is to be “invisible.” Shakeup Cosmetics directly addressed those commenters’ needs by stating on the post that when wearing their best-selling BB cream that “no one can tell that you are wearing makeup.”
2. Natural ingredients
Photo by Brooke Lark at Unsplash.
In a country plagued by counterfeits and product safety concerns, Chinese consumers are only too aware of the importance of safe cosmetics and skincare.
It’s fitting then that consumer demand for products made with natural or herbal ingredients is on the rise. So too are buzzwords like ‘green,’ ‘clean’ and ‘natural’.
In 2018, the sales value of this niche was 5.3 times more than that of 5 years ago. The consumer base was 4.2 times that of previous years.
The pollution of day-to-day life in urban China is also fuelling this demand. Schwarzkopf recently introduced a new anti-pollution range of products aimed at the Chinese market. This demonstrates a clear opening in the market for brands that can offer some form of escape from China’s environmental degradation.
Not only is there increased interest in natural products, but consumers are willing to pay a premium for them. A recent survey found that 69% of Chinese consumers were willing to purchase a completely natural product at a premium price. It’s good news for brands whose organic ethos means a shorter shelf-life and higher price point.
In fact, these types of niche brands have the potential to gain serious traction in China. According to the brand manager of the highly successful luxury beauty retailer, SpaceNK:
“One strongly growing trend in beauty in China is niche. Customers look to explore new brands and products, especially those that are less known and even less available.”
3. Skincare sets
Sales of sets and kits might bear the hallmarks of Christmas shopping in the U.K, but in China, there is a huge year-round appetite for this type of product.
Research has found that roughly 75% of consumers have a growing tendency to choose skincare sets from specific brands rather than mixing and matching multiple brands.
Why? 40% of those cite a discounted price on products, as well as free gifts. On a similar level of importance was the belief that using products from the same series will deliver the best results.
“Star products, usually high-value items, are the key trigger for consumers to start using the sets under specific brands. Structuring product sets around star products is, therefore, a smart way for brands to effectively drive sales and create loyal customers.” Unmasking the secrets of Chinese beauty, by OC&C Strategy Consultants.
4. Easy or double-duty products
Photo by Laura Chouette at Unsplash.
Forget Korea’s infamous 10-step beauty regimes. In China, the growing middle class are increasingly looking to take shortcuts in their skincare and cosmetic routines. The result? A boom in ‘lazy’ products.
This ‘lazy’ trend is not a marketing buzzword, but rather, is self-described. On e-commerce sites like Taobao and Tmall, products are often described as “well suited for lazy people” or “lazy-people-friendly”. If they’re not, but users think they should be, they’ll add helpful comments about it being 懒人 – lǎn rén – for lazy people.
And according to search data, the keyword lǎn rén is rising every month, reflecting a growing interest in easy-to-use products.
A consumer trends report by Taobao Marketplace found that lazy beauty and makeup products like stamp eyebrows and one swipe gradient eyeshadows have increased by 150% in a year.
When it comes to lazy beauty and makeup at least, younger people are lazier than the older generations. E-commerce specialist MeasureChina shared these insights:
“Products for lǎn rén are especially popular among women who are still studying or have just started their careers. Product reviewers often use phrases like “this is right for students like me”, “easy to use on busy mornings”, and “reduces time spent on makeup”.
It’s not just application that needs to be easy, but removal, as well. The most successful lazy products can be removed quickly and easily with a standard cleanser.
5. Collaborations
One way for British brands to thwart the C-beauty trend is to collaborate with local KOLs or even non-beauty brands.
Even Rihanna’s hugely successful Fenty Beauty has used this strategy. In 2020, the brand announced a collaboration with the popular Chinese tea shop HEYTEA to promote its “Cheeks Out” Cream Blush.
Collaborating early in a product’s R&D phase can have a significant pay-off. Due to the unparalleled influence KOLs wield in China, looping them in early gives you undeniable insight into the Chinese customer mindset. It also ensures your product offering appeals to the local market (and doesn’t make any cultural missteps). Limited Edition ranges, especially when they’re part of a KOL collab, have proven to be seriously irresistible to Chinese shoppers.
The future of China’s skincare and cosmetics market is bright (thanks to a brightening serum and illuminator, naturally). Will you be part of it?