Personal care industry development status analysis Personal care industry is on the rise

2.3. Experience consumption has become a trend, and the middle and high-end market is the key power area of the future appearance level economy

The younger generation of consumers are more inclined to experience consumption, making the middle and high-end markets rise rapidly. Euromonitor data show that since 2016, the domestic high-end personal care market has witnessed explosive growth, and the popularity of consumption upgrading and appearance level economy has prompted consumers to pay a high premium for beauty. International brands are concentrated in the popular, high-end, high-end and luxury categories, classic and new domestic brands, the vast majority of distribution in the brand pyramid of the high-end, popular, extreme cost performance gradient. New sharp domestic brand performance is bright, some brands have begun to expand in the high-end market.

3. Market segment status: Hair and body care products are in high demand

Under the "appearance level economy", personal care consumers not only pursue exquisite makeup, but also chase delicate details from head to toe. With the increase of disposable income in China and the continuous upgrading of national consumption, the market education of social media and the input of Japanese and Korean pop culture, consumer demand for hair and body care products is also increasing. China's hair and body care market retail sales rose from 66.2 billion yuan to 77 billion yuan between 2015 and 2019, and will reach 82.2 billion yuan in 2021, according to the China Business Industry Research Institute.

High demand for mid - to high-end hair and body care products. 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%.

The body care category is growing rapidly, with mid-priced domestic brands performing best. At present, among the online body care products, the sales of products originating in China account for more than 50%, of which the products of new sharp line and public line account for more than 60%. From the distribution of the price segment, the mass (below 20 yuan and 20-40 yuan) and the mid-range (40-60, 60-100 and 100-200 yuan) contributed about 90% of the sales, and the growth rate of the mid-range price segment was ahead of the high-end and mass price segment. At present, the consumers of body care products are more female than male, and the age is concentrated in the post-85, post-90 and post-95, second-tier and third-tier cities contribute to nearly 60% of the sales, and the sales growth rate of online cities (first-tier, second-tier and third-tier) is excellent.

4. The epidemic has driven the growth of disinfection and sterilization products, and there are still opportunities in the personal cleaning care market

The epidemic has cultivated consumers' awareness of self-cleaning, and there is still room for hand sanitizer market. The outbreak of the novel coronavirus has raised consumer awareness of hygiene and promoted the purchase of disinfection and cleaning products, especially hand sanitizer. According to Frost & Sullivan statistical research data, from 2015 to 2019, the total retail volume of China's hand sanitizer market continued to grow, increasing to 2.721 billion yuan, with an average annual compound growth rate of 11%, and is expected to reach 4.6 billion yuan in 2021.

From the perspective of product categories, hand sanitizer has better antibacterial effect than traditional hand sanitizer, and the market is expected to further expand in the future. From the perspective of sales channels, online channels are the main growth channels for hand sanitizer sales. Online sales channels accounted for 13.8% of the total retail sales of China's hand sanitizer industry in 2015, rising to 25.0% in 2019, with a compound annual growth rate of 29.7%; It is expected to reach 38.4% in 2024, with a compound annual growth rate of 35.8% in online retail sales. In the market distribution at all levels, the market growth of all tier cities is rapid, and the potential of low-tier cities is the greatest. Between 2015 and 2019, the retail sales of hand sanitizer products in Tier 1, Tier 2 and Tier 2 cities grew at a compound annual rate of 7.1%, 9.1% and 15.4%, respectively, and the trend is expected to continue to grow until 2024.