Skin care is a critical component of the Chinese beauty industry, accounting for 70% of all money spent each year. And with the country’s growing economy and consumers’ disposable income on the rise, there has been steady movement in the higher-priced end of the marketplace.
According to The NPD Group, Inc., sales of premium facial skin care products are growing in China. Sales of prestige premium products—those priced at approximately $113 and above—grew from 28% in the first half of 2007 to 31% in the second half of the year.
There has also been growth in the super-premium skin care sector. Sales of products with price tags of $214 and above rose from 10% of all facial skin care sales in the first half of 2007 to 15% in second half of the year.
“Women in China are willing to spend top dollar to look younger. The biggest sellers are anti-aging products that are priced much higher than the average facial skin care products,” said Edward Wang, manager of China Beauty, The NPD Group. “Women believe if it costs a lot, and is a well-known brand, then it must be good.”
Mr. Wang predicted continued growth in the skin care sector. “We are seeing more advertisements in China both in magazines and on television for premium-priced anti-aging products. These ads play an important role in educating women about skin care usage in China.”
More info: www.npd.com