Chinese beauty retail market predicted to reach $50bn
Despite less frequent purchases, the high demand for skincare products will see the Chinese beauty retail market continue strong growth to reach 338 billion yuan (US$50 billion) in value by 2020, says a new report.
Research by Mintel shows that 65 per cent of consumers spent more on facial skincare last year than in 2014, despite consumers buying beauty products less often.
Purchase rates for all beauty and personal-care categories surveyed by Mintel slowed during the three months to October last year. The categories most affected are hair beauty products, beauty supplements and fragrances, falling 32 per cent, 28 per cent and 26 per cent respectively.
Total retail sales of cosmetics in China grew 12.3 per cent to reach 204.9 billion yuan last year.
“The beauty retailing market seems resistant to decline, and this is mainly because the dynamic development of the facial skincare market,” says Mintel senior beauty and personal care analyst Chen Wenwen.
“To leverage their passion and spending power, it is essential for both retailers and manufacturers to engage consumers via mobile platforms.”
As many as 44 per cent of consumers used a mobile device to pay for beauty/personal care products online in the three months to October – double the number since 2014.