Three Major Trends of Cosmetics Industry Development In 2020
China's cosmetics industry has maintained continuous growth for many years. In 2019, the retail sales volume of cosmetics in China exceeded 299.2 billion yuan, with an average annual growth rate of 11.9%.
On the one hand, the growth of domestic economy and the increase of people's overall income increase the overall amount of cosmetics consumption. On the other hand, the rise of the Generation Z makes people more willing to consume cosmetics, which also drives the growth of the cosmetics market.
01 Cosmetics Users are Gradually Shifting to Young People, the Proportion of Men is Increasing
According to the changes of online cosmetics users in the past three years, the proportion of men has increased slightly. From 2016 to 2019, the annual average growth rate of men's cosmetics retail in China has reached 13.5%. In 2019, the market scale of men's cosmetics in China has reached 19 billion yuan, accounting for 4.5% of the market share of Chinese cosmetics. According to the data, the most popular types of beauty products for men are masks, cleansers, cotton pads, toners and eye creams.
In terms of age, the proportion of the post-90s and post-95s has increased, and they have gradually become an important target group for cosmetice sales. Young people in small towns also pay increasing attention to cosmetice through social media. The majority of online consumers are from second-tier cities, and the number of fourth-tier and lower-tier cities is expanding significantly. The trend of cosmetics users is obvious.
02 The Domestic Brands are Rising Rapidly
The development process of China's cosmetics market is tortuous, which has experienced three stages, the prosperity of local brands, the rapid occupation of the market by foreign brands, and the gradual recovery of local brands. At present, the head brands in the cosmetic industry still dominate the market. In the cosmetics sales of Tmall Double 11 in 2019, the TOP5 brands are still the famous overseas brands. However, some domestic brands have achieved good sales performance through different product positioning and hot sale strategies, and the domestic market share has gradually increased.
03 Live Stream Will Be the Main Channel for the Promotion and Transformation of Cosmetic
In recent years, the sales channels of cosmetics industry are undergoing a rapid transformation from offline to online. Online e-commerce is growing at a high speed, accounting for 27.4% in 2018, surpassing KA (supermarket) and department store to become the largest sales channel of cosmetics. Platforms such as short videos and live streaming not only provide KOL with more direct forms of interaction, but also provide consumers with convenient experience of buying while watching.
Cosmetics industry is an extremely high quality track. The overall distribution of the long tail effect exists in the Chinese market, which is driven by the rapid expansion of the cosmetics market by the population growth, the change of consumption concept, the diversification of consumption structure, the change of consumption channels, the industrial chain and national policies.
Prev The Market Size of China’s Maternal and Infant Industry will Exceed 4 Trillion in 2020
Next The Market Size of Maternal and Child Industry in China Reached 3.6 Trillion Yuan in 2019