What Leads, What Lags in China's Prestige Beauty Market

Posted on April 25, 2012 @ 09:20 am

Chinese consumers are apparently as drawn to anti-aging skin care as those in the West. According to recent research by The NPD Group, Inc., total prestige beauty (skincare, makeup, and fragrance products sold mainly in department stores and Sephora stores in the top 10 cities in the mainland) in China, increased +21%, versus 2010. The skincare and makeup categories each showed healthy growth of 23% and 17%, respectively.

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

By attribute, anti-aging continued to lead, accounting for half of the skincare category sales and posting a robust growth of nearly 27% in 2011, compared to 2010. Hydrating (+19%) and whitening (+15%) skincare 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 helped drive the growth in makeup, up 26.5% in 2011. Lipstick sales grew 31% and lip gloss posted a 22% increase. On the other hand, sales of eye products were soft (up +6%) due to mascara’s sharp decline of -3% in dollars and the slower paced sales of eye shadow and eye liner.