China's Hair Care Market is Going High-End, New Segment to be launched at China Beauty Expo to Harness Opportunities
Oct 28, 2019, 03:22 ET
SHANGHAI, Oct. 28, 2019 /PRNewswire/ -- The latest beauty industry data show that China's hair care market, hosted by Informa, has amounted to RMB 5 billion, which calls for new trading platforms to bolster international trade, especially for high-end products. As global giants such as P&G continue to introduce new products into China's premium hair product market, leading trade fairs such as China Beauty Expo are also unveiling platforms to promote opportunities in the emerging segment.
Last month, P&G's brand Rejoice officially launched its premium fragrance hair care -- Rejoice French "small bottle", which is customized for China's CS channel. Currently the series covers five stock keeping units (SKUs), each priced at RMB 99, nine times compared to the price of the 190ml green Rejoice bottle priced at RMB 9.9. This move is also regarded as R&G's ambitious entry into the China's high-end fragrance hair care market.
Global Growth in the Hair Care Market
The growth in the hair care market is a global phenomenon. According to statistics by NPD, hair care was the smallest yet the fastest-growing segment in 2018, with a year-on-year growth of 25%, while the premium hair care products surged by a promising 26%.
According to Mintel (a London-based research firm), retail sales of China's hair care market reached RMB 42.5 billion in 2017. It is estimated that the figure will reach RMB 53.6 billion by 2021.
Statistics show that the number of high-end hair care consumers is increasing every year. The sales of high-end products are increasing in all areas. In key cities such as Shanghai, nearly one fourth of consumers are already using high-end products. Approximately 40% of female consumers are willing to try premium hair care products.
To capitalize on the trend, China Beauty Expo will launch the brand-new High-End Hair Care pavilion specializing in shampoos/conditioners, scalp care, hair styling, and hair colorants.
"The enormous market potentials, the rapid growth rate, and the continuous introductions of high-end hair care brands are all testimonies to the booming premium hair care segment as well as its upcoming explosive growth," commented by China Beauty Expo's Vice General Manager Ying Sang. "With the new High-End hair Care pavilion, we are able to feature a dedicated platform for hair care sellers to market their products to both the vast Chinese market and our growing international buyers."
Increasing Need for Personalized Hair Care Solutions
"With increased purchasing power and growing needs for personalization and differentiation, hair care products are no longer merely daily necessities for hair cleaning. Consumers are paying more attention to raw materials, formulas, design, visuals, and user experiences as well as lifestyles and values advocated by brands," said Ying Sang, the Vice General Manager of China Beauty Expo.
"A multitude of keywords have emerged: high-end, fragrance, high-tech, amino acids, and silicone-free formulas. There has been a shift of gravity from the mass market to high-end segments, and from mass production to personalization and customization. It's clear that differentiated niche segments are what brands are working towards."
Young Consumers Will Drive High-End Hair Product Growth
According to a 2018 report on the cosmetics industry, of all hair care categories, the attention to basic hair care products rose rapidly, accounting for more than 70% of the total. Of all the needs for hair care benefits, hair loss prevention and hair growth ranked the top two, with attention level at more than 80%. There are also strong needs for premium hair care and exclusive niche brands have become the most preferred choices for young consumers.
Currently, high-end local hair care brands are hot sellers. Products priced between RMB 50 to 100 are the most favored by consumers. In the context of consumption upgrading, young consumers like to follow famous bloggers, and are more inclined towards concepts such as silicone-free formulas, fragrance, amino acids, and natural plants. Young people who seek individuality are even willing to spend more than RMB 100 for high-end shampoos.
"We have high hopes in the young Chinese consumers to further expand the hair care market. Many of exhibitors have already pledged to expand their presence at our exhibition in this segment," Ying Sang added.
China Beauty Expo's "High-end Hair Care" pavilion will showcase international brands such as L'Oréal Paris, LUX, Dove, CLEAR, Mane 'n Tail, VinnyRaye, Horse Oil, Jubilee Gardens and AGE 20's, as well as local favorites such as Lovefun, seeyoung, Houdy, SAVOLHERB, Haservey, Manting, Répand, Kustie and DIFASO.
China Beauty Expo is the country's authoritative trading platform. The annual event will once again take place from May 19-21, 2020 at the Shanghai New International Exhibition Center. Hosting 3,500+ exhibiting companies, 10,000+ brands covering the entire beauty supply chain from finished beauty products to the latest in packaging solutions. CBE is a one-stop sourcing experience for distributors, retailers, and beauty professionals seeking to learn and try the largest range of beauty products and manufacturing solutions in Asia.
For more information about China Beauty Expo, please visit https://www.chinabeautyexpo.com/en/homepage.html?source=PRweb&tag=20om03
SOURCE INFORMA
