Development Trend of Chinese Cosmetics Industry in 2019

Ban Yu'an

Guangdong 3INS Co., Ltd., China

Background

According to the report on China's cosmetics industry analysis and trend between 2019 to 2025 issued by China's industrial report website, with the improvement of people's livelihood, beauty cosmetics are accepted by a wider range of fashionista.Cosmetics is an incremental market and is featured by high growth, rapid re-purchase and weak branding.As national cosmetics products emerge and foreign brands are introduced into China, the whole Chinese cosmetics industry is able to release new products and its cosmetics industrial chain presents a trendy development.

Green cosmetics

Apart from the markets in China's large cities, counties and townships and low-end cosmetics market in small and medium cities, and the development of e-commerce as well have all greatly expanded the scope of application of cosmetics.With the popularization of cosmetics market, which is tilting towards younger generation, and the opening up of male cosmetics market, cosmetics users are more and more widespread.Domestic beauty cosmetics occupy about 10% of the cosmetics, and in general, foreign mature markets account for 30% to 50%.However, difficulties remain in terms of the quality regulation of “products bought online” and “unbranded products” and the safety of product quality cannot be guaranteed.That is why environmental protection and the product safety have been put on agenda by consumers.As the concept of “sustainable development” is gradually accepted by people, consumers care more about the environmental protection capability of cosmetics products when they buy them.Globally, consumers prefer those brands with responsibilities.Wasting less and cutting down the carbon generation is where cosmetics brands can innovate.

First, use harmless raw materials (extracted from purely natural plants without using color, essence and preservative which may cause skin irritation); second, choose recyclable materials such as bamboo, coconut shell and rice bran; alternative materials have become the trend for packaging industry.Apart from appealing to consumers who're seeking environmental protection, such packaging also stands out on plastic and glass shelves; third, conduct production with zero emission and pollution in order to reduce air pollution.It is a huge challenge for brands to meet the changeable needs of consumers and guarantee those products are green and safe.

Consumers are inclined to adopt cosmetics products with multiple functions.Instead of several different cosmetics with various functions, consumers are more willing to use one type of cosmetics product which integrates many functions with simplified steps for make-up.Data show that 67% of Chinese female hope to reduce the steps for make-up; 41% of American women take interests in multi-purpose beauty cosmetics products.Meanwhile, consumers are raising higher requirements of the skin care function of cosmetics products.Due to the worsening problem of environmental protection attributed to rapid development of economy, 41% of French women believe that environment (such as pollution and cold weather) would affect the look of people's skin.Therefore, beauty cosmetics products combining skin care and make-up function are increasingly put under the spotlight of the market.

Crossover

With the rise of the new-generation consumers who hope to reflect the lifestyle and taste, the “crossover” between different industries has been in vogue worldwide.It is a manifestation of the mixture of new attitudes toward life and aesthetic way.

For beauty cosmetics industry, crossover marketing is a new growth area where the brand effect can be enlarged to the maximum.Two brand fan groups thus overlap with each other and reach out for clients.The following are reasons behind the crossover cooperation this year: first, the extension of product function and scope of application.The industrial boundaries are gradually broken.Generally speaking, brands get intertwined with each other.Take for example, the limited beauty cosmetics series, a cooperative effort between THE FACE SHOP, an affiliated brand of LG, and Coca Cola, represents the crossover of daily chemical product and food in the FMCG sector and wins the attention among young consumers since its launch.

Rise of new brands

In the area of investment, a non-listed company with a short period of operation and over $1 billion (approximately 6.9 billion yuan) valuation could be called as a “unicorn” business.In recent years, the popularity of new brands in cosmetics sector bears close relationship with the “emergence” of youngsters' purchasing power.They all tend to be “curious” to new things including new brands.And the choice of cosmetics brands is a reflection of young people's life attitudes.That mentality of curiosity also explains the phenomenon of the ongoing popularity of new brands.

Newly-emerged brands came into being recently.Helped by their unique products and KOL effect & marketing via social media, their sales grow rapidly.By analyzing the channels of sales, we find that: online channel is quite important.Different from those relying on e-commerce platform such as Tmall or Amazon, they mainly sell products by using their official websites.

According to the data on “Double 11” by Tmall, a package of newly-emerged brands, mainly e-commerce brands, such as Perfect Diary, MEIKING and CHIOTURE, outperformed traditional brands in terms of sales, which was an astonishing growth in cosmetics industry.So it is obvious that these brands have occupied the significant position in cosmetics market.

Customized product

You can find some key words to describe the “fashionable cosmetics” in the eyes of the younger generation: fashion, personality, look and fun.Personalization and customization rather than follow others' opinions gradually become the need of young consumers to reflect themselves.Influenced by social media, consumers are more eager to show their characteristics, according to a surveyThe New Faces of Beautyconducted by NellyRodi.It is also a demonstration that consumers' demands for different beauty brands are on the rise, which embodies their way of standing out among the public.

French premium cosmetics brand Lancome released a project of customized foundation named Le Teint Particulier, which is an incubated project by L'Oreal Paris—the parent company of Lancome.Le Teint Particulier judges consumers' skin color by machine recognition and produce the foundation which suits their skin color, an initiative that has satisfied different demands of beauty cosmetics products for female with distinct skin color.Consumers in cosmetics sector are now formulating their own rules and tend to pursue customized products.They are eager to see their values reflected in the products they buy and the brands and companies they back up, and the brand personalization becomes crucial.

Popular trend of beauty cosmetics

Crystal glamour

A look at those big fashion shows will strike a chord in your heart by seeing the bright make-up of models, especially the pearly luster and the colorful part.It is dotted with pearl blades in different sizes to set off the crystal eye make-up.Golden lips and bright face represent the avantgarde personality and uniqueness.

Soft beauty

Velvet-like foggy make-up is able to present the “artificial PS” effect which help you raise UP your elegance.The fluid make-up mainly focuses on the cream-like muscle, velvet-like lips and the nostalgia earth color.The soft foggy make-up strike a balance between vitality and elegance, which is soft but not artificial, modest and noble.

Artistic color

Colorful and creative materials for beauty products embody the glamorous, illusory images, which can be seen a prepared “revolution in beauty industry”.In terms of the styles of beauty products, light color can refract light and lighten skin color; dark color, on the other hand, could highlight the outline and facial details.Therefore, a good combination of colors helps us refresh and brighten our skin color with a sense of gentleness.