2021-07-25-巨量算数-2021_Beauty_Industry_White_Paper_61页_36mb

2021 Beauty Industry White Paper Summary

Core Content

The 2021 Beauty Industry White Paper by Ocean Engine and Kantar WorldPanel outlines the resilience and growth of China's beauty market despite the challenges posed by the pandemic. It highlights the role of e-commerce, digital content, and innovative product strategies in shaping the industry's future. The report also delves into evolving consumer demands, the importance of product portfolio optimization, and the impact of targeted marketing approaches.

Main Points

Market Overview

• Resilience and Growth: China's beauty market rebounded quickly from the pandemic, showing strong recovery by the end of 2020. E-commerce emerged as a key driver of this recovery, expanding its market share from 50% to 59% between 2019 and 2020.
• E-commerce as a Growth Engine: E-commerce is not only a channel for sales but also a strategic tool for brand competitiveness. It is the primary platform for promoting bestsellers and new products.
• Digital Content Expansion: The growth of digital content, especially on platforms like Douyin, has significantly influenced consumer behavior and brand engagement. Short videos and livestreaming have become essential in stimulating interest and interaction.

Evolving Demands

• Skincare and Makeup Trends: Skincare demands have upgraded, with mask, essence, and toner leading the market. Makeup demands have diversified, with a focus on lightweight and long-lasting products.
• Consumer Preferences: Brightening, acne treatment, and hydration remain popular, while anti-aging and repair segments are gaining traction due to increased consumer awareness and demand.
• Innovative Ingredients: Consumers are increasingly interested in innovative and effective ingredients, which brands are leveraging to enhance product quality and market appeal.

Product Strategy

• Bestsellers and New Products: Bestsellers continue to be a stable foundation for brand performance, but they require regular upgrades to maintain relevance. New product launches are vital for growth and innovation.
• Segment Analysis: Mask, makeup, and sunscreen segments show high potential for new product development due to fragmented markets and lower competition. Essence and eye cream segments are more sophisticated and require higher innovation.
• ROI and Competition Density: Brands should evaluate competition density and consumer appetite for new products when deciding on product launches to maximize ROI.

Consumer Insights

• Content Creators: The number of beauty content creators and KOLs has grown significantly, with a peak in Q2 2020. These creators are instrumental in shaping consumer preferences and driving brand engagement.
• Content Quality and Authenticity: Consumers are shifting from price-centric promotions to experience-driven and authentic content, which indicates a need for brands to focus on quality and engagement rather than discounts.

Marketing Solutions

• Livestreaming: Livestreaming has become a powerful tool for brand communication, offering opportunities for reaching new customers and diversifying revenue streams.
• Digital Engagement: Brands are increasingly using digital platforms to engage with consumers, which has led to the rise of owned media accounts and influencer partnerships.

Operational Guidelines

• Adaptation and Innovation: Brands must continuously adapt and innovate to maintain market position and grow. This includes refining product portfolios, leveraging digital content, and optimizing e-commerce strategies.
• Strategic Focus: Targeting high-efficacy and specialized segments is crucial for new product success. Brands should align their strategies with consumer needs and trends to ensure market relevance.

Key Information

• E-commerce Growth: E-commerce grew by 20% in 2020 and accounted for 61% of cosmetics bestseller sales in 2020, up from 53% in 2019.
• Content Trends: Douyin saw a significant increase in beauty content views and searches, especially in Q3 2020 and during online shopping festivals.
• Bestseller Dynamics: The number of bestsellers decreased by 9% in 2020, but their market share increased, indicating a shift towards more specialized and high-performing products.
• New Product Launches: 35,526 new products were launched in 2020, with makeup and mask segments showing the highest consumer interest.
• Influencer Growth: The number of beauty KOLs on Douyin more than quadrupled from 2019 to 2021, highlighting the importance of influencer marketing in the beauty industry.

Conclusion

The Chinese beauty market continues to evolve rapidly, driven by e-commerce, digital content, and innovative product strategies. Brands that adapt to these changes, focus on high-efficacy and specialized products, and engage consumers through authentic and experience-driven content are more likely to achieve sustainable growth and market leadership.