11.02.16
CHINA: Recent figures published by Kantar Worldpanel indicate that the skin care and color cosmetics sector in China grew by 12% and 10% respectively for the 52 weeks to June 2016, far higher than 3.1% growth reported for total FMCG.
Chinese consumers are becoming more sophisticated in their beauty usage, opting to buy more premium products, which are fuelling the value growth of these sectors. This presents brand new opportunities to both international and domestic players.
Kantar Worldpanel has also published its 2016 Cosmetic Brand Footprint ranking, which measures which brands the most consumers buy, most often. Dabao leads the ranking—its products have been chosen by 23.1% of the population, on average two times a year. Pechoin was second and was the fastest riser in terms of consumer touch points, according to Kantar.
Despite strong growth in the cosmetics market, the competitive landscape in China also went through rapid transformation. Among the 4,000 brands tracked by Kantar Worldpanel, only 40% registered an increase in net sales. Among the top 20 growing brands in the market, a rise in penetration contributed 78% to their collective growth, proving that the continual recruitment of shoppers is the key way to grow sales. Aside from Pechoin, Hans, Innisfree, Dr. Morita and Shiseido, also managed to grow their consumer reach faster than the other players.
“Consumers today have unprecedented choices available to them thanks to overseas travel and e-commerce, yet the growth of Chinese brands and Korean/Japanese brands are noticeable,” said Jason Yu, general manager at Kantar Worldpanel. “While consumers are more ready to trade up, those brands who advocate health, efficacy and fun are winning consumers’ choices, on the back of unique product and marketing innovation as well as smart omnichannel deployment.”
Chinese consumers are becoming more sophisticated in their beauty usage, opting to buy more premium products, which are fuelling the value growth of these sectors. This presents brand new opportunities to both international and domestic players.
Kantar Worldpanel has also published its 2016 Cosmetic Brand Footprint ranking, which measures which brands the most consumers buy, most often. Dabao leads the ranking—its products have been chosen by 23.1% of the population, on average two times a year. Pechoin was second and was the fastest riser in terms of consumer touch points, according to Kantar.
Despite strong growth in the cosmetics market, the competitive landscape in China also went through rapid transformation. Among the 4,000 brands tracked by Kantar Worldpanel, only 40% registered an increase in net sales. Among the top 20 growing brands in the market, a rise in penetration contributed 78% to their collective growth, proving that the continual recruitment of shoppers is the key way to grow sales. Aside from Pechoin, Hans, Innisfree, Dr. Morita and Shiseido, also managed to grow their consumer reach faster than the other players.
“Consumers today have unprecedented choices available to them thanks to overseas travel and e-commerce, yet the growth of Chinese brands and Korean/Japanese brands are noticeable,” said Jason Yu, general manager at Kantar Worldpanel. “While consumers are more ready to trade up, those brands who advocate health, efficacy and fun are winning consumers’ choices, on the back of unique product and marketing innovation as well as smart omnichannel deployment.”