How to efficiently improve product and brand power will be the key factor in determining whether they can win in the future competition, and is also the root of whether the brand can break through.
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 the person in charge of YSG to share with us the cosmetic trends in China.
CHAILEEDO: From the perspective of YSG, what are the biggest trends in the cosmetic industry next year?
YSG: In recent years, Chinese cosmetic brands have rapidly emerged by virtue of their mature Chinese supply chains, the combination of online and offline omni-channel advantages, and the “Chinese-style trend”, and have the initial ability to compete with international brands on the same stage.
However, compared with international brands, Chinese brands are still in the initial stage of technology development and conversion, which restricts the sustainable development of Chinese brands. Therefore, in the foreseeable future, heavy investment in research and development, product strength and scientific research content improvement, will become the biggest trend of Chinese beauty brands.
CHAILEEDO: Traffic is getting more and more expensive, what is the new breakthrough point for brands?
YSG: With the development of the new e-commerce industry, in addition to the existing promotion platforms, new traffic platforms, including the TikTok system, are gradually becoming a new position in the promotion of the cosmetics industry, and traffic is showing a significant decentralization trend, thus prompting beauty brands to increase the omni-channel and all-round layout of the online market, and online operations will become more refined.
In the post-flow dividend era, for beauty brands, how to efficiently improve product and brand power will be the key factor in determining whether they can win in the future competition, and is also the root of whether the brand can break through.
CHAILEEDO: Where is the opportunity to flip for color cosmetics next year?
YSG: This is closely related to the general economic environment, consumer confidence, epidemic prevention and control policies, etc. It is not very good to judge for the time being.