Recently, Mr. Yang, who lives in Hangzhou, picked up sunscreen on the online shopping platform. Mr. Yang told reporters that for himself who loves outdoor sports, using sunscreen products is an important means to prevent skin diseases, and many friends around him have this habit.
Under the background of economic development and the change of consumption concept of post-90s and post-00s, the traditional barriers that restrict the development of men’s grooming market are gradually being broken.
men’s grooming market has sprung up
According to the Research Report on “other economy” in 2021 – insight into men’s new consumption released by China Mobile think tank, the proportion of male users who have purchased skin care products in a year is more than 50%, with an average purchase frequency of more than twice a quarter as high as 70%, and the purchase amount of more than 900 yuan in a year is more than 50%. Many data confirm the outbreak of this new consumption demand.
“A third-party figure shows that the Chinese men’s cosmetic market will reach about 10 billion yuan in 2021. This figure is not small for an emerging industry, but it is still in the basic stage and has a very large penetration space.” Bao Ling, head of the men’s care business line of tmall beauty industry, told the Securities Daily: “in 2021, tmall FMCG upgraded men to a first-class industry, which saw the rapid rise of men’s consumption.”
According to the data released by the prospective industry research institute, the market scale of Chinese men’s skin care products is expected to maintain rapid growth. The average annual compound growth rate from 2021 to 2026 is expected to be 15.88%. The market scale of Chinese men’s skin care products industry is expected to exceed 20 billion yuan in 2026.
Chao Chenglin, a researcher at the understanding Research Institute and a business strategy expert, told the Securities Daily: “the development of this industry is an inevitable trend brought about by the development of the times and the upgrading of consumption. With the increasing improvement of living and cultural standards, it is also a natural phenomenon that men begin to pay attention to their own image and related protection, which also promotes the demand of the industry to move towards a period of development.”
Wang Peng, an associate professor of Renmin University of China, said to the reporter of Securities Daily: “There are three main reasons for the popularity of the industry. First, with the development and changes of the times, consumption upgrading continues to occur, and the number of groups with a certain income level and related needs gradually increases in cities; second, the growth environment of the Post-Zero and Post-Zero generation is different from that before, and they pursue personality and self-expression and a kind of community attribute; third, in the digital era, the growth of men through digital media The concept of skin care has formed a trend, which will also affect the needs of the public and the development of related products. “
subdivision track is expected to become a growth point
The reporter interviewed a number of post-95 boys who have skin care consumption habits, and initially learned that cleansing, multi effect products and shampoo products are more popular with male consumers. The basic reason is that cleansing and shampoo products are just needed, and multi effect products can save cumbersome steps.
According to the report released by inminster in June 2021: in the past six months, the number of men using skin care products more than three times has increased to more than 40%, the steps of skin care have increased, and more sub efficacy categories need to be used.
“On tmall, the number of users with an annual consumption of more than 1000 yuan is increasing year by year, and the industry growth is driven from the number of consumers to the width of purchase, that is, consumers buy more categories, higher consumption frequency and amount, and the customer unit price increases.” Baoling told reporters, “from the perspective of consumption trend, taking cleansing as an example, the trend of men’s consumption upgrading is very obvious. Consumers prefer to buy big brands and high-end products. From the perspective of new customers, the number is increasing every year. From the perspective of new customers’ purchase preference, the proportion of cleansing with 50-100 yuan is the highest.”
At the same time, in the segment of sunscreen, according to tmall, from March 1 to March 14, 2022, men’s sunscreen increased by 144% year-on-year. “Men’s sunscreen has high growth rate and low penetration rate, so there are great market opportunities.” Bao Ling said.
Wang Peng told reporters: “on the whole, there is room for its development to rise, but it will take a long time to catch up with market share, awareness and profitability. In the future, the development direction of the industry should go to specific categories, specific groups and small groups, and do deep and thorough, such as combining with fitness and healthy life, and exploring the combination with digital technology.”
“From the perspective of demand, category purchases will be richer and demands will be more yuan. From the perspective of efficacy, men also begin to focus not only on basic efficacy, which also drives the product iteration of subdivided categories.” Bao Ling mentioned.
capital swarmed in
Wu Daiqi, CEO of Shenzhen siqisheng company, said in an interview with Securities Daily: “L’Oreal, Nivea, Mentholatum, Dabao and other big brands entered the men’s care market many years ago. The main reason is that big brands obtain growth points by segmenting people, and the industry has further developed by focusing on cleansing, sunscreen and moisturizing products. In addition to the education and publicity based on big brands, more is the rise of this economic form, so more brands enter and accelerate its development.”
“In terms of brand concentration, men’s care is currently occupied by large groups, such as L’Oreal, which accounts for about 40%, mainly because more enterprises may not pay attention to this market.” Baoling told reporters, “but we are glad to see that new players have injected new vitality into the market since 2019. Over the past two years, there has been a very good growth rate, contributing to the growth of the whole industry. This also shows that new brands have a great opportunity to enter this part of the track. At the same time, some old domestic brands, including Bloomage Biotechnology Corporation Limited(688363) , Winona, have also developed men’s grooming products.”
In fact, in addition to L’Oreal, Keyan’s, Shiseido and other international brands that have long occupied a dominant position, in the past two years, domestic cutting-edge brands such as Liran, blue series, dearboyfriend and jacb have also emerged, aiming at this cake. The hot market has attracted a lot of capital to accelerate its entry.
Tianyancha app shows that within two years of its establishment, it has naturally completed six rounds of financing. The most recent round of B + financing was led by Tiger Global Fund, and bilibilibilibili was used as a war investment. Wuyuan capital, redpoint China ventures and Haina Asia venture capital fund continued to follow the investment, and the shareholding ratio was not disclosed.
Tianyancha app shows that jacb, a brand of Shanghai JIAYE Mingshi Trading Co., Ltd., focuses on providing fashionable and effective cosmetic and skin care products for “generation Z” young male consumers. After its establishment, it completed the ten million yuan Angel round financing by Bai and Chuangshi partner capital CCV.
Another men’s grooming brand, dearboyfriend, is subordinate to Beijing Tayan Technology Co., Ltd. in round a financing, black ant capital, Jinding capital and Huachuang capital are introduced, and Jinshajiang venture capital, the shareholder of angel round, continues to follow.
Deng Zhidong, general manager of Hainan Boao Medical Technology Co., Ltd., told the Securities Daily: “capital consortia are ready to enter the market, enabling the industry to accelerate its development, and the layout of China’s old cosmetics brands has been accelerated one after another. Large areas of major platforms are ‘planting grass’, and the market demand continues to be stimulated and awakened. This new consumption prospect is expected to form a 100 billion market in the future.”
rapid development period requires urgent strengthening of supervision
Although domestic cutting-edge men’s skin care brands have sprung up, there are still few brands that can come out of the circle. Wu Daiqi mentioned that due to the inability to copy the formula of existing products, enterprises need to invest in R & D in this field; In addition, we need to find the real pain point of consumers.
“At present, the scale of this market is still small and there is a lack of core hard core technology. The Chinese market is dominated by large overseas brands and there are few local well-known brands. It is necessary to cultivate local cutting-edge brands and improve the market competitiveness and sea going ability of local brands.” Deng Zhidong told reporters that the current explosive growth of men’s nursing market is mainly driven by marketing rather than products. The industry as a whole is still in its infancy. There are still problems such as non-standard market, imperfect rules and many gaps in supervision.
Wang Peng also said: “from the perspective of the industry life cycle, this market should still be in the growth period, with low penetration rate and great space. However, the cost of education is high, the current penetration rate is not high, and the potential demand for men to use beauty products needs to be stimulated.”
In the stage of rapid development, there is also chaos in men’s cosmetic industry. “First of all, the product standards are still uneven, and there are great differences among brands. Most importantly, due to the short development history of the industry, the maturity and adaptability of its products are also very poor. At the same time, the richness and level of products are not enough to meet the needs of customers at different levels and different requirements.” For the problems existing in the industry, Chao Chenglin told the reporter of Securities Daily, “the price disorder also needs to be solved. Due to the consumption habits of male consumers, the virtual high of products is long-standing, and even the price of some products is far from the product, and there are still product quality problems.”
Wang Peng said that from the perspective of industry supervision, a series of regulatory provisions, rules and norms system related to male cosmetic products still need to be further improved.
