Beauty products that stress their health credentials will be winners among Chinese consumers as they emerge from the current lockdown.
According to a new study from Euromonitor, this shift in attitude will be a direct response to the COVID-19 crisis, Cosmetics Design Asia reported.
China’s economy has been badly mauled by the virus outbreak and colour cosmetics and fragrances are no exception, with sales down as people work from home and avoid going out to socialise.
Last year, the beauty and personal care sector was worth in the order of $66.25bn, with a compound annual growth rate of 9% over the last five years. But, while skincare and toiletry sales have been hit, Euromonitor forecasts the downturn will be short-lived and the sector quick to recover once the crisis abates.
“Although negatively impacted during the epidemic period, basic skin care products and toiletries may only witness a small degree of turbulence throughout the year, as these products see more rigid demand, hence sales could rebound quickly after the quarantine period,” said Connie Zhou, head of Euromonitor research in Shanghai.
Other lines in the sector have experienced massive growth, of course, with demand for anti-bacterial soap and hand sanitisers soaring as consumers seek to protect themselves from the virus by practising hand hygiene.
Local skin care brands, like Inoherb and Chando, have responded by producing sanitising products, Zhou noted.
Longer term, the Euromonitor report says that the general shift by consumers towards health and hygiene will continue.
Zhou calls this the “healthy beauty” trend and believes it will be shown in numerous ways within the beauty and personal care sector. Brands may focus on healthy ingredients, for example, as well as products that suggest a healthy lifestyle with beauty as part of that lifestyle.
Beyond this change of emphasis, Zhou believes that the growth of online sales in the sector is here to stay. Many consumers have switched to shopping online to overcome lockdown restrictions.
Online sales already play a crucial role in beauty and personal care product sales in China, now accounting for 30% of sales by value for skin care, and 38% for colour cosmetics last year, reports CosmeticsDesign-Asia.com. Euromonitor predicts COVID-19 will have the effect of increasing digital innovation, especially in the luxury sector.
Sourced from Cosmetics Design Asia