Cosmetics retail in China – additional information
In recent years, the cosmetics market in China has been developing rapidly. According to the statistic shown, cumulative cosmetics retail sales from January to August 2015 had amounted to approximately 128.2 billion yuan. As the demand for cosmetic products expands further in second-and third-tier cities of China, cosmetics retail is expected to maintain its growth momentum in the near future. In addition, the changing attitude among men towards skin-care fosters the booming of men's cosmetics market in China. Between 2011 and 2014, the sales value of men’s grooming products in China had almost doubled.
Foreign cosmetics brands play a dominant role in China’s cosmetics market. Seven out of ten leading beauty and personal care product brands in China were foreign-funded, accounting for nearly half of the overall market. L’Oréal, the world’s largest cosmetics company, still holds the largest share in China’s color cosmetic product market, despite of the obvious decline in market share since 2011. Apart from an adjusted brand strategy, shifting preferences among Chinese consumers towards premium brands and increasing competition may be seen as the main reasons for the steady decline of L’Oréal’s share in this subsector.
Among the main distribution channels for cosmetic retail in China, online retail has been expanding significantly over recent years, while traditional retail channels such as hypermarkets and department stores were losing ground. In 2014, online shopping had accounted for 15.5 percent of China’s overall cosmetics retail sales, up from only 5.3 percent in 2011.