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NPD Reports on Prestige Beauty Industry in China

January 30, 2013

CHINA: According to beauty market research conducted by The NPD Group, Inc., in 2011, total prestige beauty in China, increased 21% versus 2010. The skin care and makeup categories each posted healthy growth of 23% and 17%, respectively. NPD defines prestige beauty as skin care, makeup, and fragrance products sold mainly in department stores and Sephora stores in the top 10 cities in the mainland of China.

In prestige skin care, all the segments (face essence, face moisturizer, face basic care, eye, sun treatment, body, and all other: hair, lip, nail, etc.) rose steadily, with face essence (+25%) and moisturizer (+21%) taking the lead by capturing nearly half of skin care sales.

By attribute, anti-aging continued to act as the segment driver, accounting for half of skin care category sales and posting a robust growth of nearly 27% in 2011, compared to 2010. Hydrating (+19%) and whitening (+15%) skin care also played a big role in category growth.

In prestige makeup, the face segment captured 59% of the category’s dollar share and increased 18% in dollar sales from 2010. Products that make the face look lighter and smoother like foundation and makeup base continued to play a key role in China. Foundation and makeup base led the face category, up 24% and 30%, respectively.

In addition to face products, lip care helped drive the growth in makeup, up 26.5% in 2011. Lipstick sales grew 31% and lipgloss posted a 22% increase. On the other hand, sales of eye products rose more slowly (+6%) due to mascara’s sharp decline of 3% in dollars and the slower paced sales of eyeshadow and eyeliner.

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