Industry Insights
China makeup/cosmetics market size was estimated to account for a market value of USD 3.90 billion in 2017 and is expected to grow at a significant rate over the forecast period. China makeup industry is fragmented with numerous players in the market. L’Oreal China remains the market leader as it caters to diverse consumer needs. L’Oreal offers both mass and premium products in China. The offline channel is the dominant segment and is expected to remain same over the forecast period owing to the presence of large and small retailers.
China makeup market size, split by product type, 2017 (% share)
The millenial are the fashion influencers in China and account for about 415 million of the Chinese population. Millenials are looking for products that suit them and their lifestyle. Thus, manufacturers are introducing products to meet the needs of busy millenials. For instance, Lakme has launched its 9 to 5 lipstick which stays longer and is specially designed for the working females. The products targeted at millenials are expected to increase in the long run and drive the growth of the China cosmetics market over the forecast period.
Moreover, the fashion brand cosmetics in China have gained significant popularity over the past few years. The need for designer cosmetics is an increasing trend among the young generation owing to the increasing influence of Chinese social media. There is an increasing investment from the luxury brands as Chinese women are inclined towards sophistication and premium products. For instance, as luxury cosmetics is what most of them can afford, Dior’s lipstick has become one of the must have item for many Chinese woman.
The need for self expresion fullfilment is another reason Chinese are increasingly shifting towards luxury makeup products. Moreover, the well established brands in accessories are investing in this segment in China as their reputation help them ease the entry to mainland. The well established players are further investing in the digitalized experience for the Chinese consumer owing to high penetration of technology and easy access to smart devices. For instance,to cater to the tech savvy consumer many brands such as L2, beauty brands Lancôme, Estée Lauder, SK-II and L’Oréal have invested in digital, including Augmented Reality.
Segmentation by makeup type
• Face
• Lip
• Eye
• Nail
Face makeup is the largest revenue generator segment attributed to the increasing need of younger generation to make a style statement and to obtain desirable perfect look. This segment consists of numerous offerings and variants of existing products that have driven the face makeup market over the past few years. For instance, L’Oreal’s well renowned brand Maybelline offers variants such as Fit me, and Maybelline super stay for 24 hours stay foundation. The hectic lifestyle of consumers has forced them to seek for product offerings, that satisfy their specific needs and time efficiency. Thus, manufacturers are launching products of different forms to suit the ease of use. For instance, Maybelline brand have introduced its foundation in stick form for on the go consumers. Manufacturers are focusing on products which will provide flawless skin with skin care benefits. For instance, Maybelline has introduced its dream fresh BB cream which blurs imperfection, hydrates, brightens, smooths and acts as a sun protection cream too.
The eye makeup has witnessed significant change over the past decade owing to the increase in research for various beauty enhancing products. Traditionally eye makeup was limited to certain products but with the latest technology advancement, fashion trends and innovation, this market segment has witnessed wide expansion in terms of its product portfolio. Thus, innovative eye products such as tattoo eyeliner from Katon Von D, colorful eyeliner from Lakme are gaining increasing popularity. Furthermore, nail makeup is trending in China owing to numerous social media posts, blogs and DIY nail art tutorials available online. The increasing fashion-conscious consumers are expected to drive the Chinese makeup industry in future.
Segmentation by distribution channel
• Online
• Offline
The online retail sector is expected to register a significant growth over the forecast period. This scenario is attributed to the availability of premium products and normal products offered by various brands associated with convenient purchase hassle free doorstep delivery. Furthermore, the access to high speed internet is expected to drive the growth of online presence of consumers over the forecast period. However, the retail sector has a strong foothold in China with presence of various convince players. The foreign players are interested to invest in China’s retail sector and expected to drive the retail sales in future.
Competitive Landscape
The China makeup market is competitive and is marked by the presence of well eastablished players including LOreal, P&G , Shiseido Co.,Ltd, Estée Lauder and others. Given the prevailing competition, the players tend to look for innovate their product portfolio in line with the requirements of the consumers. To that end, the market is expecetd to witness the launch of new products over the forecast period. Some of the leading player in makeup product is LOreal with its major mass brands namely Yves Saint Laurent Beauté, maybelline, Olay.
