The Rising stars of personal care Brands



1. Personal care market consumption upgrading, the rise of domestic brands differentiation

1.1. The fair has achieved full industry chain coverage, and there is room for further growth in the personal care market

The first US Expo after the epidemic, the new trend, the performance of domestic brands. With the three main themes of "Internet, Science and innovation, sustainability", we have realized the whole industrial chain coverage covering daily chemical line, supply chain, professional line, new channel and rehabilitation industry. This year's exhibition not only set up traditional personal care categories such as skin care, makeup, hair and body care, and washing products, but also opened up new themes such as medical health, light luxury, etc., diversified to lead the integration and innovation of beauty industry resources, and seize new opportunities for market development.

1.2 Domestic brands want to rise, need to follow the five trends of the individual care market from the United States Expo product composition and exhibitor channel structure analysis of the five new trends of the individual care industry:

1) Under the influence of the epidemic, repair and anti-sensitivity have become the mainstream needs, and Fuerjia locates the effect of repairing the skin's own barrier, conforming to the mainstream beauty trend.

2) The younger generation of consumers have formed an experience-oriented consumption trend, and Iska has driven China's wash and care market to enter the upgrading era as a selling point.

3) The concept of "clean skin care, natural skin care" is popular

4) Beauty equipment, breast slimming anti-aging and other body care, freckle acne whitening and other facial care products are hot, the medical beauty market can not be underestimated.

5) Exhibitors have transformed from traditional offline sales to multi-channel operation models such as e-commerce, wechat business and beauty salon lines.

1.2.1. Trend 1: Under the influence of the epidemic, repair and anti-allergy have become the mainstream needs of skin care

In the post-mask era, repair and anti-sensitivity have become mainstream skin care trends. In the context of the epidemic, 50% of consumers pay more attention to skin care, and gradually establish a healthy skin care concept during the home period, and more than 60% of consumers have skin allergies, breakouts, and enlarged pores in the post-mask era. 57% of male consumers experienced skin problems after wearing a mask, and 69% of female consumers experienced skin problems after wearing a mask. The factors that different genders are most concerned about in choosing "mask face" skin care products include product safety, efficacy and product ingredients, and they have higher trust in professional dermatologists and expert opinions.

Personal Care Industry Research: What are the rising stars of Personal care brands?

1.2.2. Trend 2: Experiential consumption becomes a trend, and Gen Z is willing to pay a high premium for appearance level

The young generation of consumers have formed an experience-oriented consumption trend, and the high-end market has risen rapidly. Since 2016, the domestic high-end personal care market has seen growth, and the popularity of consumption upgrading and appearance level economy has prompted consumers to pay a high premium for the United States. International brands are concentrated in the popular, high-end, high-end and luxury categories, classic domestic and new domestic brands, the vast majority of distribution in the brand pyramid of the high-end, popular, extreme cost performance gradient. New domestic brands have performed brilliantly, and some brands have begun to expand their frontiers in the middle and high-end markets.

Personal Care Industry Research: What are the rising stars of Personal care brands?

Internet native Z era, online consumption power is high. Generation z refers to people born between 1995 and 2009, who have been surrounded by high technology such as the Internet since childhood. Their per capita disposable income exceeds 3,000 per month and they are willing to pay for their appearance level and fashion. According to iResearch, the purchase rate of beauty and skin care products is as high as 94%. For personal care products, Gen z values product efficacy and ingredient safety most, followed by product reputation, and is willing to pay a high premium for this.

Personal Care Industry Research: What are the rising stars of Personal care brands?

Iska (838858) launched the main functional head care products and body care products, leading the domestic exquisite bath culture. Head care products cover the "salon hair quality management expert" series, herbal peptide anti-depilating hair health series, fragrance care series, etc., to prevent depilating care and as a selling point. Body care products include coffee wake up body care series, niacinamide whitening care series, etc., and also launched a new magic series, gradually opening up a "new track" in the field of beauty and skin care. And launch private customized projects to provide consumers with exclusive services, closely grasp the needs of Generation z.

Personal Care Industry Research: What are the rising stars of Personal care brands?

1.2.3. Trend 3: When Clean Beauty is in progress, the concept of "clean skin care" is in vogue.

Medical research to create functional skin care products is the future direction of domestic brands. Clean Beauty focuses on additive free and natural organic products. It rejects harmful substances and supports zero harm. Its concept of "clean skin care" has become a popular trend. Since 2012, the scale of China's dermatology grade products has been on the rise, the scale of China's dermatology grade products in 2019 was 13.55 billion yuan, and the growth rate of China's dermatology grade skin care products in 2016-2019 was 25.7%, far exceeding the overall growth rate of skin care products of 12.9%.

Personal Care Industry Research: What are the rising stars of Personal care brands?

Ingredients and efficacy, cost performance and brand protection are the three most concerned factors of beauty and skin care consumers, especially sensitive muscle consumers, more than 60% of the requirements of natural ingredients. Home Facial Pro, a domestic representative brand, ranked among the top 10 beauty sales on Tmall in 2018, and its annual sales scale exceeded 1 billion. 诺斯贝, as a domestic Clean Beauty enterprise with relatively mature technology, has established relevant technology and processing very early.

Personal Care Industry Research: What are the rising stars of Personal care brands?

1.2.4. Trend 4: Beauty instruments, medical face and body care products are hot, and the medical care market should not be underestimated.

The demand for personal care products such as beauty equipment, body care such as breast slimming and anti-aging, facial care such as freckle and acne whitening has increased, and the future growth still has potential. Mintel data show that 60% of Chinese female consumers aged 20-49 said they had used at least one home beauty device, due to both light medical beauty, light intrusion, portability and simple operation advantages, the acceptance of home beauty devices has gradually increased, and the scale of consumption is in the stage of accelerating growth.

Personal Care Industry Research: What are the rising stars of Personal care brands?

Medical beauty skin care products refer to the biomedical grade raw materials combined with the concept of beauty professional maintenance of professional health care products, with hypoallergenic, safe, efficient characteristics, is to make the user's skin in the physiological changes of cosmetics. With the increase of income level and the change of medical cosmetology concept, consumers have a huge demand for medical cosmetology services. Compared with risky medical surgery, low-risk personal care products have great prospects for development.

Personal Care Industry Research: What are the rising stars of Personal care brands?

1.2.5. Trend 5: Expanding from traditional offline sales to multi-channel operation models such as e-commerce, wechat business and beauty salon lines.

Online heavy transformation, offline heavy experience integrated marketing will be the future direction. The epidemic catalyzes the pace of digital marketing transformation, and the future advertising marketing will continue to increase online investment, especially the channels outside e-commerce platforms. Offline channels will not be replaced by online channels in the future, but as the entrance to consumer experience and the carrier of brand publicity, gradually forming a closed loop of online and offline. The epidemic in early 2020 has ushered in comprehensive growth of the e-commerce live broadcast market, and the super head anchor has broken through the circle to idolization, leading to high transaction consumption, superimposing the star direct broadcast effect, and bringing goods with better effect.

Personal Care Industry Research: What are the rising stars of Personal care brands?

Brand marketing tends to be more content, more intuitive form of video websites, short video/live broadcast as the carrier to create a differentiated approach. The popular video content of beauty makeup and skin care mainly includes the following categories: creative video, open box evaluation, good species grass, product evaluation, content implantation, etc., focusing on the user demand characteristics of the platform KOL/ red fans circle, precise positioning marketing programs, creating brand voice volume, and creating featured products.

Personal Care Industry Research: What are the rising stars of Personal care brands?

Since 2017, the number of MCN institutions in China's MCN industry has increased, and more and more people have entered the content industry. The head MCN institutions include worrieless Media, front tooth video, such as Han Holding and Gu Jiahe. Iimedia Consulting data show that in 2016, 2017, 2018 and 2019, the financing amount of China's MCN industry was 16.5 billion yuan, 13.6 billion yuan, 7.9 billion yuan and 3.5 billion yuan respectively, and the main reason for the decline is that MCN institutions have realized benefits and enhanced liquidity. The amount of financing and financing opportunities are gradually reduced. In early 2021, Taobao launched the virtual anchor Day group, reflecting the trend of accelerating virtualization of business image.

Personal Care Industry Research: What are the rising stars of Personal care brands?

From the primary market can be seen, short video MCN seems to have become the object of various capital chase. In January 2021, White Rabbit Video, A short video MCN institution with head beauty master Luo Wangyu, received nearly 100 million yuan A+ round of financing. At the end of December 2020, Baidu invested in short video mcn agency Mu Cloud Culture, and the two sides have reached an exclusive signing of the first four head creators. And Ali Pictures has long begun to lay out the pan-entertainment content marketing MCN company Tao show light, with the "short video + live" two major plates as the core, Tencent has already invested in ivy culture, big goose culture and other institutions.

Personal Care Industry Research: What are the rising stars of Personal care brands?

2. Industry overview: The proportion of China's personal care products consumption in the global market has increased

2.1. Market overview: The market size has exceeded 450 billion yuan, and the medium - and long-term development potential remains high

Although the personal care industry has been affected to a certain extent during the epidemic, the market has high long-term development potential. The size of China's personal care market grew to 458.7 billion yuan in 2019, far exceeding the 305.8 billion yuan in 2015, with a CAGR of 10.7%, and is expected to grow to 701.4 billion yuan in 2024, with a CAGR of 8.9%. Under the severe impact of the new coronavirus epidemic, data from the National Bureau of Statistics show that the cosmetics category will still achieve 9.5% growth in 2020.

Personal Care Industry Research: What are the rising stars of Personal care brands?

The proportion of China's personal care products consumption in the global market scale is on the rise. Since 2011, China's share in the global market has surpassed Japan to become the world's second largest cosmetics market. According to IIMedia Research, China's share of personal care consumption in the global market increased from 9% in 2013 to 11.8% in 2019, and is forecast to reach 12.9% in 2021. Domestic emerging brands such as the perfect diary of Yi Xian e-commerce, small Odin, the first to seize the domestic sinking market.

Personal Care Industry Research: What are the rising stars of Personal care brands?

2.2. Market segment status: There is room for further growth of Gecare segment circuits

Compared with the developed countries, China's per capita personal care consumption there is a significant gap, large floating space. Taking the makeup market as an example, China's per capita consumption of makeup products in 2019 was about 39 yuan, while Japan, South Korea and the United States were 421 yuan, 321 yuan and 390 yuan, respectively. Chinese makeup consumers are young and low-line. Euromonitor data show that compared with European and American markets, the penetration rate of China's makeup market, especially in cities below the second and third tier, still has room for improvement.

Personal Care Industry Research: What are the rising stars of Personal care brands?

2.2.1. "Skin care" and "makeup" products have broad prospects and large room for growth

Skin care products account for most of the consumption in the personal care market, and the makeup market has great potential. The epidemic has driven the emergence of hot spots such as "mask face" and "mask makeup", as well as more and more attention to skin care ingredients, and black technology that can also beauty at home. The concept of skin care raised at home during the post-epidemic period has heated up the market, the rise of "mask makeup" has driven the sales of eye makeup products, and the problem of "mouth cover face" has made anti-acne and anti-allergy skin care and repair facial essence widely popular. From 2016 to 2019, the proportion of skin care consumption in personal care consumption increased from 50.6% to 52.4%, the growth rate increased from 6.6% to 13.3% and is expected to reach 14.7% in 2023. The proportion of makeup consumption in personal care consumption increased from 8.3% in 2016 to 12% in 2019, the growth rate increased from 11.4% to 25.3% and is expected to reach 27.4% in 2023. At present, the vast majority of domestic skin care brands are distributed in the middle and high-end, popular gradient, and some brands have begun to enter the high-end market of "anti-aging".

Personal Care Industry Research: What are the rising stars of Personal care brands?

Male appearance level economic awakening, the future market or can be expected. According to IIMedia Consulting data, the retail scale of male beauty in China reached 15.89 billion yuan in 2019. At present, men's awareness of the improvement of their own appearance level is increasing, and the demand for personal care consumers is obvious. Ingredients and efficacy, cost-effective and brand protection are the three most concerned factors, which promote the development trend of diversified and refined skin care products and makeup products.

Personal Care Industry Research: What are the rising stars of Personal care brands?

With the advantage of entering online channels earlier, domestic makeup leading enterprises enjoy the dividends of personal protection penetration in the process of upgrading low-line cities.  Founded in 2016, Yi Xian e-commerce with the perfect diary to cater to the mass makeup market, focusing on young women's small Odin to lead the domestic makeup trend.

Personal Care Industry Research: What are the rising stars of Personal care brands?

2.2.2. The scale of hair and body care industry continues to expand, with high demand for middle and high-end products

The rise of the "appearance level economy" has led consumers to chase the finer details from head to toe. The retail sales of China's hair and body care market rose from 66.2 billion yuan in 2015 to 77 billion yuan in 2019 and will reach 82.2 billion yuan in 2021.

Personal Care Industry Research: What are the rising stars of Personal care brands?

Consumer demand for mid - to high-end hair and body care products is strong. The consumer demand for hair care products is mainly concentrated in the two directions of anti-hair hair growth and fragrance care, while body care consumers are more concerned about the efficacy of neck wrinkling and hand and foot moisturizing and exfoliating products. The popularity of e-commerce has spawned the "house economy" and led to the accelerated development of new consumption patterns. According to IMedia Consulting data, among the categories of goods online purchased by Chinese netizens, the purchase proportion of washing and care products has reached 40.8%. Domestic emerging brands, such as Adolf, use satellite TV variety titles to promote product functional effects, and expand brand influence with the help of traffic dividends.