Prestige Brands to Lead China’s Beauty Market Growth in 2023

by WWD

This article was firstly released by WWD.

SHANGHAI — After a year of lockdown disruptions, China’s beauty market is poised to resume rapid growth in 2023. Euromonitor International projects China’s beauty and personal care market will grow 5 percent to $98 billion in 2023.

Excluding travel retail and duty-free shopping, Bernstein predicts that beauty spending per capita will approach that of South Korea and Japan, driven by growth in the premium and mass market segments, which are expected to see 13 percent and 8 percent annual growth separately for the next five years.

Euromonitor estimates that the premium market will surpass the mass market in 2026.

Established prestigious brands weathered the lockdown storm and registered stellar growth in the first 11 months of 2022, according to data compiled by Bernstein. The top five prestige skin care brands in terms of sales growth on Tmall, Taobao and Douyin combined were ChanelGuerlainSisley, La Mer and Helena Rubinstein.

Shopping festivals, now encompassing offline and online retail, will be the main driver of sales. According to Elena Gatti, managing director at Azoya Europe, Women’s Day next month, 5/20 Valentine’s Day in May, 6/18 shopping festival in June and finally Singles’ Day in November, will be important touch points to reach consumers.

“Many brands starts building momentum for Singles’ Day in July or August. If they accumulate enough clout and influence by October and November, they will see actual sales conversion,” Gatti said. 

Read the full article at WWD.