Ever-evolving market landscape
Currently, skincare products dominate China’s cosmetics market, comprising over 60 percent of sales, with creams and moisturizers being the most popular products. However, the increasing number of Chinese consumers wearing make-up has sparked a notable surge in demand for color cosmetics. Among all color cosmetic products, base make-up boasts the largest market share and is experiencing the fastest growth pace.If we categorize China’s cosmetics market by price range, both high-end (over 400 yuan) and low-end (less than 200 yuan) cosmetics are dominated by foreign brands, and the middle-end accounts for only a small part of the market. Over the past decade, urbanization, growing disposable income, and social media influence have boosted the demand for higher quality, premium brand products in the beauty and personal care market. According to a Statista consumer survey, approximately 29 percent of Chinese consumers preferred to buy luxury or premium cosmetics products, well ahead of their peers in South Korea and Australia. This has encouraged domestic brands to increase the investment in research and development (R&D), to offer cosmetic products with competitive quality at an attractive price, with the price range between 200 yuan and 400 yuan becoming the new battlefield.