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Monday, August 1, 2022Market

State of the prestige beauty market in China

L'état du marché de la beauté prestige en Chine

According to The NPD Group, skin care (67% of total e-commerce sales of prestige beauty products in China) remains the fastest growing cosmetic category in the country. This is due to the importance given to skin condition by the Chinese. Hair products have also performed well, with a 65% increase in 2021.

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Which prestige categories are doing best in China? According to The NPD Group, perfume store closures in 2022 (due to the health situation) combined with lower-than-expected sales during the June 6, 2022 shopping festival, resulted in lower value sales for skincare, makeup and fragrance. Hair was the only category that saw sales growth.

Regardless of category, local brands tend to position themselves in a lower price range, a very different strategy than international brands. International brands typically rely on brand reputation and traditional positioning, while local brands leverage social media exposure to increase awareness.

“This is a lesson for big, well-known prestige brands. They should take a cue from their lesser known counterparts and target the youth market. Building brand recognition among young consumers today will pay off in the long run,” commented Samuel Yan, Head of E-commerce China for The NPD Group.

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