The strong growth momentum still held steady in China’s household and personal care market in 2011, despite the overall economy slowing down. Thanks to rising demands from urban cities and rural areas, China’s household and personal care market maintained a double-digit growth rate last year, and the retail sales of beauty and personal care product reached more than $15.8 billion, according to National Bureau of Statistics of China.
For China’s beauty and personal care market in 2011, the double-digit gain was mainly driven by prestige product sales. During this period, prestige beauty market grew 21%, with 23% growth in skin care and 17% growth in makeup. Mass beauty sales also grew, although at a slower rate than premium sales, according to Euromonitor International.
As always, the overall performance of multinational companies outpaced the local ones in terms of both market shares and sales revenues. According to Euromonitor’s top manufacturers in 2011, multinationals continued to lead beauty and personal care, with P&G, L’Oréal, Shiseido, Unilever and Amway holding the top five spots last year (see chart). Meanwhile, local companies made strong contributions to the market growth, with Shanghai Jahwa, Jala, Shanghai Inoherb and Carlsan recording robust double-digit growth.
Here we have a quick review of two local stars that operate their businesses primarily in China domestic market. By taking a holistic strategy to ensure product safety and maintain brand integrity, these local companies have achieved astonishing growth.