Customers buy cosmetics in Haikou Riyue Square Duty Free Shop. Xinhua News Agency reporter Guo Chengshe
"China’s beauty market sales will exceed 1 trillion yuan in 2025." According to an article in Women’s World Daily, China has become the key to the growth of global beauty companies, driven by the increase of family income, the continuous influx of newcomers and the growing local brands.
At the "June 18th China International Beauty Summit Forum" held by Women’s World Daily, Gian positano, head of the Italian Cosmetics Federation, said that the beauty market in China is expected to reach 92.1 billion US dollars in 2022. The growth momentum will mainly come from the rapid growth of the male beauty products market and the rise of domestic beauty brands.
According to the report, China is not only a key consumer market and manufacturing center, but also a driving force for innovation. From setting up research and development centers to investment funds, many international beauty giants continue to expand their investment in China; At the same time, many local brands of beauty cosmetics in China began to internationalize in order to explore the international market. China beauty brands are still entering foreign markets through cross-border e-commerce.
In recent years, the beauty market in China is full of vitality, showing new development characteristics. First, the growth rate is fast and the coverage is wide. At present, the market scale of China’s beauty industry is gradually moving towards trillion level; Second, facial basic skin care is the core track, accounting for the largest market share, and the growth rate of sub-tracks such as makeup and makeup is also faster; Third, the male beauty market is developing rapidly, and major brands are competing to enter the market. In addition to "her economy", "other economy" has also quietly emerged; Fourth, domestic beauty brands have risen rapidly. Domestic brands have made remarkable progress in raw materials, formula and technology, and a large number of cutting-edge domestic brands such as Perfect Diary and Huaxizi have emerged.
China’s beauty market is booming, which is of great significance to promoting domestic and even global economic recovery. In terms of supply chain and industrial chain, the development of beauty industry is closely related to agriculture, biochemistry, glass industry, plastic industry, transportation industry and advertising industry, and many related industrial chains have been developed and integrated. This has a positive role in promoting the global industrial chain.
The unprecedented development of China’s beauty industry is the result of multiple factors.
First, with the continuous development of China’s economy, the main contradiction in today’s society has been transformed into the contradiction between the people’s growing need for a better life and the unbalanced development. Beauty products just meet the social needs and respect needs of consumers.
Secondly, more and more foreign excellent beauty brands have entered China, bringing advanced production technology, novel marketing methods and unique product concepts to the beauty market in China, promoting the industrial chain to be mature and perfect, and cultivating consumers in the beauty market in China to some extent.
Third, the consumer groups of beauty products in China are gradually expanding. With the rapid economic development, China people’s household income level and consumption power are constantly improving, and the demand for beauty products will also expand. In addition, some beauty brands have gone to other cities to explore the market after deep cultivation in first-and second-tier cities, and gained more sustained positive growth momentum.
Fourthly, the change of consumption concept provides a broad market for the development of beauty products in China. Generation Z consumers are the core consumer groups in the future beauty market.
Fifth, new social and marketing platforms such as live broadcast have expanded rapidly. The rise of social media, such as Little Red Book Assessment, online celebrity Live Delivery and KOL, has strongly promoted the development of China’s beauty market.
With the development of economy, the progress of science and technology and the change of consumer groups, there will be some new trends in China’s beauty market. First of all, driven by "Yan value economy", the influence of "Z generation" on the beauty market should not be underestimated. Secondly, digital transformation is the general trend. Digital transformation of layout is conducive to grasping the core channels of beauty products, such as credit payment method, digital marketing concept, digital network sales channels and so on. Finally, Guochao brand has great development potential. "Generation Z" consumers have a high degree of cultural self-confidence, preferring China elements and national brands, and new publicity strategies and marketing methods such as "co-branding" are loved by consumers.
If China’s beauty market wants to achieve steady and healthy development, it needs to firmly grasp the development direction. From the core competitiveness of beauty products, we should pay attention to the independent research and innovation of product formulas, establish a "moat" of domestic brands, and gain a place in the global beauty industry chain; From the special properties of beauty products, we should enhance the experience and efficacy of beauty products and enhance customer stickiness. As an "experience product", consumers will pay special attention to the core ingredients and actual use effect; From the perspective of development trend, we should focus on digital transformation, put product design and research and development, industrial chain operation and customer loyalty system on a digital platform, and then make a comprehensive layout of digitalization; From the perspective of sustainability, green materials should be used to promote sustainable development. Beauty products are "fast-moving consumer goods", and packaging materials will produce a lot of carbon emissions when they are processed. The country strongly advocates "carbon integration". If beauty brands can pay attention to sustainable development and combine with the major policies advocated by the country, it will not only benefit the brand itself, but also help the environmental development.
(Interview with Zhou Ying)