Cosmetics industry: 100 billion market leads consumer goods
release time：September，03，2019
Cosmetics market of 100 billion, active capital layoutThe development of China's modern cosmetics industry began in the 1920s, and it has undergone four stages: small workshop start-up, industrial production, overseas brand acquisition, and domestic brands.
At present, the industry has entered a new stage of development. On the one hand, the industry's various market segments have gradually improved, and the sales scale has reached record highs. On the other hand, industry consolidation has started and capital mergers and acquisitions have been active.
Cosmetics consumption has rebounded significantly, leading other consumer goods
(1) From the perspective of various consumer goods above designated size, the cumulative growth rate of cosmetics retail sales in April 2018 reached 15.90%, the highest growth rate, leading other consumer goods;
(2) In 2017, the annual retail sales of the cosmetics industry above designated size reached 217.1 billion yuan, a year-on-year increase of 16.66%. The growth rate was the highest since 2013, which was higher than the zero growth rate of consumer goods companies (+7.56%).
(3) The proportion of cosmetics consumption in total retail sales of social products continued to increase, accounting for 1.64% (+0.13pcts) in 2017;
(4) According to the overall retail statistic statistics, according to the “2017 Cosmetics Industry Mobile Marketing Insight Report” released by InMobi, the overall transaction volume of China's cosmetics retail sales reached 583 billion yuan in 2016, with a growth rate of 20.4%.
By 2018, this scale will exceed 800 billion yuan.
Customer price. Cosmetics can be divided into popular cosmetics and high-end cosmetics. In 2017, the retail sales accounted for 82% and 18% respectively. Assume that the unit price of the overall cosmetics market is the weighted average of the two, that is, 315 yuan. Considering the price
Factor, we assume a slight increase in the unit price of 2017/2018/2019/2020, which is 315/320/325/330 yuan.
Annual consumption frequency. The two categories that are most concerned about in the cosmetics market are skin care products and make-up products. Skin care products average 5-7 times/year, and cosmetics products average 2-4 times/year. According to the euromonitor data, the market share structure of skin care products and make-up all year round
Approximately 5:1, weighted by two major categories, the annual consumption frequency of the overall cosmetics is about 6 times.
In 2017, the size of China's cosmetics market exceeded 300 billion yuan. According to our calculations, the market size of China's cosmetics industry in 2017 was about 323.2 billion yuan, close to 352.4 billion yuan in 2020, and the CAGR of 3.93% in three years.
The future competition of the Chinese cosmetics market has entered a new stage, that is, the traditional market has increased market share, and emerging categories have increased penetration.
Intergenerational switching: youthful consumption into the market
The intergenerational switching of the consumer population is the most important factor driving the development of the industry. The social backbone of the post-80s and the personality of 90 after the support of 80% of the online cosmetics market.
White-collar workers and college students are the mainstream consumers of cosmetics fashion consumption, and online shopping is the main consumer channel.
White-collar workers and students have a stable income, pursue fresh and fashionable things, pay attention to cost-effectiveness, and consume habits online. Online shopping accounts for 58.5%.
In terms of online channels, e-commerce self-operated or brand flagship stores (such as Vipshop, Jingdong, Tmall, etc.) are the main channels for purchasing beauty products after 95, accounting for nearly 70%.
Compared with other age groups, after 95, the preference for shopping mall counters, clothing retail market and other channels is lower, and the degree of networking is higher.
The men's skincare beauty market is growing rapidly, and young men are becoming new.
From the overall trend, men's care and perfume products have the obvious advantage to occupy the top two of Tmall's beauty consumption preferences, and the category preference index reaches 287 and 176.
The male group's requirements for self-care are more refined, resulting in an advanced demand for facial image and overall temperament, thus promoting sales in the men's cosmetics market.
