Guide
On April 25, Kantar Worldpanel (part of CTR in China) was invited by CBE (China Beauty Expo) to release the "2024 China Beauty Trend Report". The report focuses on the recovery of the beauty market and proposes a new outlook for the beauty market in 2024. The following are the core contents:
· Under the positive signal of demand return, China's FMCG market has maintained a moderate growth trend of 1.2% in the past year, and consumers have shown a characteristic trend of "small quantities and multiple times" in FMCG categories.
· Among them, the beauty market performed steadily, with diversified demand and buyer reshoring more than offset the impact of the shrinking shopping basket, but at the same time, the market remained under downward pressure on prices.
· However, the good news is that all beauty categories showed strong growth momentum in the fourth quarter of 2023. Among them, the balanced coexistence of rational consumption and shopping normalization in the skin care market, as well as the successful breakthrough of domestic brands from middle-aged and elderly groups to young groups, all demonstrate the rapid evolution of demand in the beauty market.
· We summarize the trends affecting China's beauty market in 2024 as "SMART", which are the following five key words:
S: Spend wisely
Smart Consumption
· Under the combined effect of streamlining skin care, consumption downgrading and demand refinement, consumers strive to find a balance between "pragmatism" and "self-reward", trying to accurately select products from different price points, and achieve the lowest cost and highest return to meet their most urgent skin care needs within a limited budget, so the trend of polarization of skin care product consumption has emerged.
M: Personalise creative makeup
Modi-sumer
· In order to meet their own needs, consumers have taken advantage of the existing product features to explore a series of "cross-border" beauty use tips (such as oil into cream, blush contouring, etc.).
· Some brands have taken advantage of the trend and launched products with both "multi-purpose" and "highly portable" characteristics, such as multi-purpose balms and moisturizing sticks, allowing consumers to achieve both "sophistication" and "streamlining".
A: Advanced care
Advanced Care
· The rise of advanced care has been fueled by consumers' increasingly sophisticated needs, their insistence on beauty in their busy lives, and their awareness and interest in wellness.
· The penetration rate of out-of-home medical beauty programs among women aged 15-39 has reached 14%, and at the same time, it has driven the popularity of a series of pre- and post-project special care products.
· In addition, the concept of internal and external skin care is no longer just a slogan, and the brand has gradually developed from simple combination marketing with health care products to the launch of direct oral products.
R: Brand output emotional value
Re-emerging Brand Storytelling
· Simple and brutal discounts are no longer enough to sway consumers, and beauty brands are realizing that in order to build emotional resonance with consumers, they need to work on the brand story.
· In addition to leveraging the influence of traditional film and television productions and social media, brands are opening their minds to explore new communication channels, such as short videos and live broadcasts, which have gradually developed into the "main stage" of brand storytelling, thanks to the characteristics of wide audiences, large traffic and creativity.
T: Technology helps product innovation
Tech-fueled Product Drive
· In the highly competitive beauty market, brands need to constantly update their product technology to continue to attract consumers. Driven by science and technology, disposable serums and freeze-dried powders have opened up a new idea of "small but beautiful" for the beauty industry.
· On the one hand, disposable disposable packaging can maintain high activity and high efficacy, and the small particle size of the lyophilized powder is also easier to absorb, which provides consumers with a more efficient use experience.
· On the other hand, the development of these niche categories has also satisfied consumers' continued thirst for new things. Some domestic brands have grasped this thirst well, and they are constantly introducing new products, upgrading old products, and conveying "new ideas" to consumers clearly and loudly.
· In addition, with the help of technology, the involution of ingredient upgrading and differentiation is still in full swing.
· If brands want to get a piece of the fast-paced beauty industry, they must always pay attention to consumers' demand motivations through data insights, stay sensitive to market opportunities, and grasp the initiative to cope with changes, which is the inexhaustible source of competitiveness and vitality for brands in the future.
Create extraordinary
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