The overall scale of China’s beauty and skin care industry is about 500 billion, including basic skin care and personal care. This report selects representative sub tracks for in-depth analysis: bottom makeup & color makeup, basic facial skin care, functional skin care, medical dressing and beauty collection store.
Driven by the diversification and deepening of channels, consumption upgrading and other factors, China’s beauty track has maintained a steady development trend. Among them, compared with facial makeup, bottom makeup is the basic sector of the track. In terms of the overall track business model, explosive logic is the main way to play at present and for some time in the future, but players will play an increasingly important role in building their own capabilities. In addition to the head international brand, the head domestic brand has successfully built a number of key capabilities.
Driven by the expansion of consumer groups, the entry of new players and the transformation of existing players to medium and high-end, the growth of China’s facial skin care track is relatively stable. Under the current business model, strong R & D capability combined with strong marketing and the implementation of large single product strategy is still an important measure for top players to maintain their core assets. In the future, with the tightening of national supervision, self-developed core formula will occupy an increasingly important position in the fierce competition, and the exclusive core component will help establish a moat of large single products.
The influx of new players, online marketing and mass channel sales in the functional skin care track are the driving forces for the continuous growth of the industry, and will still benefit from the continuous expansion of demand groups and the improvement of repurchase rate in the future, especially the head players who have created strong brand power. Affected by the rising trend of customer acquisition cost, expanding efficacy categories, improving product barriers, expanding mass skin care categories and improving single customer LTV is the core strategy of the enterprise in the short term. At the same time, offline market mining will also be an opportunity point.
The medical dressing track continues to benefit from the improvement of product penetration & repurchase rate, and the introduction of new policies has further raised the entry threshold, so we should focus on: 1 Players who have core component barriers, qualification advantages, production scale advantages and can quickly seize the market, and those with good product and channel adjustment are better; 2. Some small and medium-sized players who focus on mass channels. In the short term, it is the common strategy of players to expand the brand voice and expand the skin care business line for C-end marketing.
The entry of new beauty collection store players drives a new round of rapid growth of the collection store track. Although traditional head players have certain scale and capital barriers, the selection of new players is more flexible and diverse, and the store design is avant-garde, forming a strong competition against traditional players. In the future, players will build diversified categories and brands in the form of investment brands, optimize supply chain management ability, omni-channel marketing ability and members’ fine operation ability will become important competitive strategies.
