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Personal care market to keep growing

(China Daily)

14:04, October 03, 2012

Premium beauty and personal care products accounted for the majority of the industry's sales growth in 2011, according to a report by Euromonitor International. Premium skin care, makeup and fragrances witnessed strong growth last year, with consumers trading up from mass brands, the report said. [Liang Zhijie / For China Daily]

An anticipated baby boom this year is expected to drive the growth of baby and child-specific products, while older age groups will continue to drive sales of anti-aging skin products, the report said.

Men's grooming is likely to see ongoing growth due to increasing demand from younger Chinese men, it added.

One of the notable trends is that fast-growing e-commerce has resulted in declining sales through traditional retail channels in 2011, the report found.

Department stores and superstores are considered two major channels for beauty and personal care products in China, with department stores mainly providing middle-to-high-end goods and superstores focused on low-to-middle-end goods.

Online retail has grown rapidly, thanks to increasing Internet access and use of e-commerce websites such as Alibaba Group's business-to-consumer platform Tmall.com. E-commerce appeals to many Chinese consumers due to its accessibility, attractive prices and convenient delivery services.

In 2011, online sales of beauty and personal care products increased by 84 percent, the report said.

Online retailers' target consumers of beauty and personal care products are middle- and high-income female consumers.

E-commerce advertising has also increased and can be regularly seen on TV channels, such as CCTV, as well as outdoors in public transportation stations, the report said.

By the end of 2011, a large number of leading international and domestic companies in the beauty and personal care market - including Procter & Gamble (Guangzhou) Ltd, L'Oreal China, Unilever China Ltd and Shanghai Jahwa United Co Ltd - have set up stores on Tmall.com because of its popularity.

Shiseido China Co Ltd began to use Tmall.com in February 2012, according to the report.

Several leading companies in the beauty and personal care market have been working to build up official online platforms targeted at Chinese consumers.

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