With just four months until the 23rd Edition of China Beauty Expo which will run from May 22 to 24, industry insiders are once again looking to the expo as an important “weathervane” for China’s beauty industry.
This year, China Beauty Expo is uncovering several important signals about the China market.
Consumer Purchases Continue to Move Upmarket
According to recent data from China’s national statistical bureau retail sales of consumer goods reached RMB 36.63 billion (US$5.81 trillion) in 2017, up 10.2% from the prior year. Of this amount, retail sales of cosmetics reached RMB 251.4 billion, an increase of over 13.5% over the previous year. This marked the industry’s first return to growth after four consecutive years of decline. An overall shift to more upmarket consumption has also accompanied the overall growth in the cosmetics market.
Leading Brands and High-end Products. China Beauty Expo 2018 continues to build on its 2017 base of exhibitors. This year’s high-end brands include L’OREAL, SHISEIDO, SHANGHAI JAHWA, JALA, SHANGHAI CHICMAX, PECHOIN, OUSIA, UNIASIA, OSMUN, PROYA, INOHERB, MARUBI, and WETHERM.
Imported Products. China Beauty 2017 attracted cosmetics companies from 34 companies and regions around the world. By early 2018, more than 4,000 imported brands had already committed to participate in China Beauty 2018. These brands cover categories that include cosmetics, skincare, household cleaning, oral care, make-up tools, facial masks, health care, maternity and baby care, and paper products. Among these, make-up tools, facial masks, oral care, and beauty care products are the fastest growing categories, increasing 100%, 67%, 60% and 50% respectively.
Brands Are Targeting Younger Consumers
Consumers born after 1985 to those born after 2000 have become primary targets for cosmetics brands. Demand within younger consumer segments has also driven demand for cosmetics brands at China Beauty Expo 2018. This year’s event will include international and domestic brands, including CARSLAN, KAFELLON, LANSUR, HIFACE, HANAMINO, SUHU, MISTINE, RED EARTH, Japanese Make-up Products led by Polystar, JETRO and other regional trade associations. Plus, the leading beauty groups such as L’OREAL(MAYBELLINE), SHISEIDO, COTY(MAX FACTOR), AND @COSME will also showcase their cosmetic products.
Many of these brands are using popular TV programs and Internet personalities to promote their brands and shape their merchandising. More brands are also inviting male stars to endorse their products. We also see large skin care brands such as Glamourflage and Pechoin beginning to target the cosmetics market.
China Beauty Expo 2018 is responding to these trends by creating unique experiences that reflect the shopping habits of younger consumers. This includes its specially built N5 Fashion District, and Cape of Good Hope. China Beauty Expo will also organize the 2018 International Cosmetics Festival, Perfume Carnival, Meiyi Fashion Stage and other events to create an interactive and intimate trade platform.
Consumer Demands are Rapidly Moving Upstream
Increased research by brands and tighter brand-supply chain partnerships are bringing upstream suppliers closer to end-user needs. China Beauty Expo has also responded to these market changes by creating more targeted industry categorization and product segmentation. The exhibition segments products into 11 major categories and 38 sub-categories. This includes the identification of more specific product segments such as makeup primer, foundation, concealer, lip cosmetics, eye cosmetics, and eyebrow cosmetics,
Look to Emerging Categories to Surprise Consumers in Offline Retail
To compete with e-commerce channels and aggressive service strategies in traditional retail channels, many specialty retailers are looking to exclusive categories and unique products as path for future growth. For example, niche categories such as make-up tools appeal to physical retailers as they look for ways to attract consumers. The demand for these distinct niche products is partially reflected in the 100% growth rate in imported make-up tool exhibitors at China Beauty Expo 2018.
Deeper International Cooperation
In addition to introducing new international brands and products, China Beauty Expo also creates a unique and important platform for international cooperation. In 2017, China Beauty Expo’s Country of Honor, France, brought their Cosmetic Valley, major cosmetics groups, MUSEE INTERNATIONAL DE LA PARFUMERIE DE GRASSE and other organizations to connect with industry peers in China.
Japan will be China Beauty Expo 2018’s Country of Honor. According to Sang Ying, Secretary-general of China Beauty Expo, Japanese companies will exhibit in the exhibition’s Hall N5. This year’s China Cosmetics Retail Summit, China Cosmetics Supply Chain Summit, and other events will enable Japanese industry experts to connect with their Chinese counterparts and share their latest breakthroughs in products and technology.
In addition, China Beauty Expo 2018 will also bring together Asian industry professionals in an effort to share innovations and resources as it promotes cooperation with IFSCC, Asian Cosmetics Association, and Shanghai Daily Chemistry Trade Association, etc. The expo will feature activities such as Business Meetings Asia (an international matchmaking platform), Beyond Beauty Trends (a conference sharing Asian beauty trends), and an Imported Cosmetics Registration Forum.
Don’t miss China Beauty Expo 2018 at the Shanghai New International Expo Centre from May 22 to 24, 2018.