Research and forecast of global and Chinese beauty and personal care industry segment product market consumption scale

Compared with foreign mature markets, the penetration rate of sunscreen products in China is low, and the per capita consumption of sunscreen products is only 11.8 yuan, less than one seventh of the per capita consumption of sunscreen products in South Korea. With the deepening of Chinese consumers' awareness of sun protection, China's sun protection market still has a lot of room for growth.

3) Overseas leading enterprises dominate, and the proportion of local enterprises is relatively low: in 2021, China's beauty and personal care industry CR10 and CR20 are 43.70% and 55.10%, respectively. Among the top 10 enterprises, there are 2 local enterprises; Among the top 20 companies, there are 9 local enterprises.

Although the market share of local brands is low, the combined market share of the top five local enterprises has increased from 6.2% in 2012 to 7.4% in 2021, a cumulative increase of 19.35%1. Local brands have significant advantages in product cost performance, sinking channel expansion, and young group consumption trend capture. In the future, with the local brand research and development investment, new product development, brand image upgrading, the market share of local brands is expected to continue to increase.

4) E-commerce channels have developed into the single sales channel with the highest proportion: e-commerce channels have the advantages of wide coverage, fast transmission speed, strong flow effect, accurate delivery of consumer groups, and their own social attributes, and have high compatibility with local beauty and personal care brands, cost-effective, heavy marketing and publicity. Therefore, in recent years, China's local brands have made efforts to online channels, continue to increase the investment of various resources in e-commerce channels, and continue to optimize online marketing and sales. Statistics from CICC International Consulting show that the proportion of e-commerce channel sales in the beauty and personal care industry has grown rapidly from 9.90% in 2012 to 38.60% in 2021, and has developed into the single sales channel with the highest proportion. The proportion of traditional convenience store and supermarket channel sales decreased from 37.50% in 2012 to 19.00% in 2021.

3. Industry competition pattern

(1) The overall competition pattern of the industry: with the continuous improvement of the urbanization rate, the continuous growth of per capita income, the steady upgrading of consumption structure and the gradual change of consumption concept, China's beauty and personal care industry has continued to expand its scale after years of development. According to the data of the State Food and Drug Administration, by the end of 2021, as a fully competitive industry, the number of licensed manufacturers of cosmetics in China has exceeded 5,000, the number of registered cosmetics products has reached more than 1.6 million, and there are many market participants, fierce competition in the industry, and a certain binary structure attributes. The high-end market with high consumption as the main audience in the first and second tier cities has a higher income of the target group, and pays more attention to product efficacy, specific ingredients and brand awareness. Multinational leading enterprises with years of established brand image and huge research and development capital investment, with a certain first-mover advantage, occupy a leading position in the high-end market. Statistics from CICC International Consulting show that in 2021, the high-end beauty and personal care market is mainly concentrated in large multinational leading enterprises, with the market share of the top ten enterprises 65.80%, in contrast, the competitiveness of local companies in the high-end market is slightly weak, accounting for only two of the top ten enterprises.

The mass market is the focus of local companies' efforts in recent years. Local enterprises with high cost performance, flexible marketing methods, characteristic design in line with local needs, and constantly improving product quality have risen rapidly, and have won the favor of mass consumers in third - and fourth-tier cities. The total market share of the top five local enterprises has increased from 8.40% in 2012 to 13.60% in 2021, and the market share has increased year by year. According to the statistics of CICC Qixin International Consulting, the market share of the top ten enterprises in the beauty and personal care mass market in 2021 is 43.60%, and the industry competition is more intense than that in the high-end market.

(2) Competition pattern in segmented areas:

① Skin care market competition pattern: As the largest subdivision of China's beauty and personal care industry, the skin care market competition is particularly fierce. Statistics show that the top five companies in the domestic skincare market share are L 'Oreal, Estee Lauder, Procter & Gamble, Shiseido and Pecorin. Leading foreign enterprises with their own technical advantages and long-term accumulation occupy the main share of the market, but a number of local enterprises represented by Baique Ling, Jialan, Shanghai Jahwa, Shanghai Shangmei, Huanya Technology combined their respective technical advantages and product characteristics to explore the main track suitable for their own development, and gradually become the forefront of the industry. The share of Huanya technology in the domestic skin care market is 0.90%, and the local enterprise ranks eighth.