Impressive Growth of Health and Beauty Retailing in China: Ken Research
Posted on 22 August 2016 by KenResearch Consumer Products and Retail,
The report titled “HEALTH AND BEAUTY RETAILING IN CHINA-MARKET SUMMARY & FORECASTS” highlights market dynamics of beauty products in China. It discusses present and future outlook of the market in line with player’s performance.
The retail market in China for health and beauty products reached CNY398 billion in 2015 and is expected to reach CNY620 billion by 2020.Expanding young and middle class population is boosting the sales in health and beauty sector. With the upturn in Chinese economic condition, cosmetic industry in China has witnessed a rapid growth. China has huge consumer base in cosmetics markets, ranks second after ‘the U.S’.
Factors boosting retail sales of health and beauty products
The industry is very lucrative from the business point of view and it’s an undoubtedly an optimistic point of investment in China. Forecast about the industry is promising profits in the near future. Chinese consumers are very particular about the products they buy. They not only compare the prices of the products but also look for the health and safety aspects of the product.Major driver for increasing demand for cosmetics products is the growth in disposable income of the households and expansion in young and middle class population. Young generation is inclining towards aping of western culture and their aspiration for better lifestyle is forcing them to spend more on health and beauty products.
Distribution of beauty products plays an important role in the growth of the industry and high retail sales. Supermarkets and hypermarkets are the biggest contributors in offline retail sales. In today’s world, purchasing habits of the consumers are changing as they are moving towards online purchase which is more convenient and comfortable to them. All the major brands are doing ecommerce business and are meeting their target sales. Online shopping and online spending on health and beauty products accounts for 6.1% of the total retail sales in the segment in 2015.
Sales of eye make-up products recorded significant growth in recent years. Retails sales of Anti-aging products are increasing as it helps consumers stay youthful. Also, the sales for Cosmeceuticals such as spot lightening cream, acne treatment lotion and acne ointment is increasing. These cosmeceuticals contains natural ingredients such as aloe Vera and vitamins.There is also an increase in the sale of male cosmetics product. Now retail sales in males cosmetics market is growing at a faster rate than female cosmetics market.
We can conclude from the above column bar diagram that retail sales of health and beauty products in china is increasing rapidly since 2009 and this is expected to increase in the near future. There are various leading to high retail sales such as high disposable income, young and middle class population.
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Ankur Gupta, Head Marketing & Communications