Kao: High Efficacy Cosmetic Brands to Emerge in Affordable Market

In addition, the market of personalized, diversified and high-quality products will further expand.

The beauty industry has encountered various challenges this year. The total retail sales of consumer goods in China for cosmetics was 245.3 billion yuan(about $34.1 billion) from January to August 2022, down 6.4% year-on-year. However, China’s efficacy skincare market has been growing rapidly in recent years, with a compound annual growth rate of 23.4%, and is expected to reach 41.1 billion yuan(about $5.7 billion) in 2022. CHAILEEDO invited Junichi Tanaka, General Manager of Kao Business to share with us the cosmetic trends in China.

CHAILEEDO: From your perspective, what are the biggest trends in the cosmetic industry next year?

Junichi Tanaka: In the future, Chinese consumers’ awareness and knowledge on cosmetics will continue to soar, and the demand for personalized, diversified and high-quality products will further expand.

In order to respond to diversified customer needs, high efficacy brands will emerge in the affordable market, providing consumers with a richer choice. At the same time, the high-end market will also maintain a steady growth trend.

CHAILEEDO: Which categories are you optimistic about next year and why?

Junichi Tanaka: At present, the demand for “safe and secure” products that can be used by sensitive skin is expanding. On the other hand, although consumers currently have a high demand for “anti-aging” products, the demand for products that can achieve both “peace of mind and safety” and “high anti-aging effect” will increase even more in the future.

In this regard, Kao will continue to focus on research and development and do its utmost to contribute to improving the quality of life for sensitive skin.

CHAILEEDO: What is the next big thing for live channels?

Junichi Tanaka: Compared to the current practice of relying on top KOLs, the independent operation of brands will become important in the future. Specifically, in the future, live broadcast will not be limited to product promotion, but to improve the quality of activities that can accurately convey the characteristics and advantages of products to customers.

When the quantity of information is converted to quality, it will further enhance customer loyalty, strengthen brand and product value, and create growth opportunities.



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