Reality check: Chinese beauty market snapshot dispels popular consumer myths

16 Mar 2023 --- Several dominant myths are pervading the Chinese beauty sector at present. A new report by China strategy specialist Hot Pot China and The Future Laboratory consultancy delves deep into the attitudes and behaviors of consumers in this market, which is labeled “heavily mythologized and misunderstood.”

For Western beauty brands, the authors note China represents a “significant volume and value opportunity, but only for those who understand the consumers better than their competitors – to simply translocate domestic assumptions into China has historically failed for beauty brands.”

“By introducing, and then dispelling, myths that span both the skincare and color cosmetics sectors, we hope that brands and partners will take more nuanced steps to realize some of this value in a growing market,” state the authors of the report titled “Reality Check: 10 Chinese Beauty Consumer Myths in 2023.”

“These misconceptions and stereotypes have created myths about the attitudes, motivations and channels to market and position with Chinese consumers. They lead to a costly misunderstanding of the Chinese beauty buyer, and can be prohibitive for marketing and commercial decision-makers based outside of China.”

“Holy trinity” of beauty ideals is still in place
To get a broad understanding across the Chinese beauty market, the companies surveyed 18 to 30-year-old consumers, mostly female, who are living in “Tier 1 to Tier 3” Chinese cities, and had purchased skincare and cosmetics products in the past month.

“In order to keep the report within a realistic premium context, we restricted personal income to above CN¥5,000 (US$725) per month,” detail the researchers. “Half of our respondents were in the younger age group, while the other half were in the older group.”

The Chinese ideals of possessing pale, luminescent skin, large eyes and a high-bridged nose are still apparent, but not overly imposed.

The mainstream Chinese ideals of beauty – including the “holy trinity” for women possessing pale, luminescent skin, large eyes and a high-bridged nose – can be partly explained by both a deep-rooted belief that tanned skin is linked to a labor-intensive, non-cosmopolitan lifestyle.

The “holy trinity” standard is dialed up by pop culture and technology like beauty filters on smartphones. “This is often wrongly misconstrued by newcomers to marketing in China as a desire to look Western,” the study authors underscore.

“In truth, these attitudes around whiteness have roots that go back centuries and stem from class status in imperial times.”

These ancient beauty standards are “still very much in place” and “proving extremely resistant to change,” they add. But they find that modern consumers’ general feelings of pressure about these ideals are not as high as might be expected.

Among 25 to 30-year-old women, 60% of respondents accepted “orthodox social standards of beauty,” but, in turn, did not feel pressure.

Still, many beauty brands lean into the “holy trinity” ideals; for example, Chinese-American actress Liu Yifei’s campaign for Shiseido’s White Lucent Luminizing Serum is tipped as a top-performing product in China.

While the trends of “democratic and inclusive” beauty popularized in the West have not fully taken over Chinese traditional aspirations of what defines “beauty,” it is highlighted that China may be an “uncomfortable” territory for many Western brands that have spent resources on tackling harmful stereotypes.

“It is important to acknowledge that this work should not be undone or hidden for the Chinese audience, but instead, integrated and subtle in your brand communications,” advise the authors of the study.

Putting myself first
Another myth is that appearing attractive for love interests is “all-consuming” for the average Chinese consumer.

“There is a misconception in the West that – owing to a comparatively low age of first marriage in China (on average 26 in China versus 32 in the UK, for example) – there is a strong attitudinal tilt toward cosmetics product usage as a means of finding a marriage partner,” state the researchers.

“While this is, of course, a fairly reductive view, it is an important topic that requires some research. Our data found that usage of cosmetics was more likely to be for reasons linked to personal or self-confidence such as looking prettier, younger or more energetic than to attract a partner.”

Findings from focus groups revealed that young, university-aged women are eager to express individuality and liberation from high school through makeup.

Among the many reasons for cosmetics use, “looking healthier and energetic” ranked third in Hot Pot China’s survey. This shift toward aesthetic health – described by The Future Laboratory as “adapting lifestyles and behaviors to bolster appearance” – is also evident globally, as consumers demand beauty formulas and tools that have direct health benefits.

“Consider how the healthification of beauty might play out in your domain, from lymphatic skincare to multifunctional facial health devices,” advises the report.

The market size of live selling revenues for consumer brands grew from CN¥120 billion (US$17.4 billion) in 2018 to RMB2.2 trillion (US$318.9 billion) in 2021.Label literacy is high
One area in which there has been some misconception is in relation to the depth of Chinese consumers’ knowledge around specific ingredients and compositions of these ingredients.

A prevailing attitude found among Chinese consumers is that it is important to be extremely well-informed about beauty products. Buyers want an expansive amount of information on product content such as nicotinamide, hyaluronic acid, Bosein and glycerine, and this is actively sought out in about a quarter of cases.

“Interestingly, this holds true across male and female buyers,” note the study authors. “Our research also indicated that, with regard to female beauty buyers in China, a majority of buyers (over 80%) make their purchase decisions based on specific ingredient content.”

Meanwhile, the notion that purpose claims are equally important for buyers in China as in the West is flagged as “a myth.” Values of sustainability, diversity and inclusion were not found to be dominant influences when compared to other product-specific and personal benefits – even while these remain “supporting factors.”

Diversity, inclusion, avoidance of animal testing and environmental messaging are all ranked lower on the motivational scale than ingredient ratios and harmful chemical content. Still, the authors do not discount the importance of a strong purpose-driven brand mission.

Skin tone is not everything
Desire for a whiter, cooler skin tone is proving resistant to change among the younger generations in China. Despite this, when it comes to buying criteria, other elements have been ranked higher. 

In terms of general well-being motivations, skin nourishment and hydration rank the highest for younger Chinese women. For men, oil control and water balance (30%) are the most important.

With regard to specific skin issues that could be interpreted as “non-preventative,” pore refinement scores highly (25%) across all the surveyed demographics. Acne removal takes on a higher importance among a younger group of women and diminishes in importance as the condition typically tends to be alleviated.

Roughly 50% of women between the ages of 25 and 30 – a significant figure given the population volume – start using skincare products to deal with the first signs of aging.

Men’s cosmetics niche
One prevalent notion is that male cosmetics is the next opportunity for brands looking at China.

“Westerners who have been to China in the past few years might have noticed billboards featuring male models promoting cosmetics,” detail the study authors. “Owing to the relative stigma associated with male make-up and cosmetics in the West, it would be fair to conclude that in China the opportunity for men’s cosmetics has exploded.”

While usage of cosmetics among men is increasing, it is estimated that only about 12% of men in China use color cosmetics frequently.However, they note that while usage is definitely increasing, it is estimated that only about 12% of men in China use color cosmetics frequently. “This should definitely not be overstated, as over 75% of men, therefore, are unlikely to use these products.”

As the majority of men in China are not primed for cosmetics purchases, this market is better understood as supplementary alongside a core female focus, unless the brands’ product portfolio is specifically male only.

Within the usage group, however, the product opportunity is “surprising,” as it is identified in lipsticks and foundation rather than mascara. “We found that these were product preferences in our focus groups too,” note the report authors.

Among male cosmetics users, over 30% were primed to upgrade their foundation, while 40% were primed to upgrade their lipstick. This is compared to only 5% of men who reported spending more on their mascaras. 

“This shows that, although the opportunity for men’s cosmetics in China is emerging, it would be wise for brands looking to use this trend to be product- and sub-category-specific when looking for entry points,” say the researchers.

Leveraging live selling
On a macro level, the market size of live selling revenues for consumer brands grew from CN¥120 billion (US$17.4 billion) in 2018 to CN¥2.2 trillion (US$318.9 billion) in 2021. 

But despite observed growth and retained importance of the channel, it appears the impact of influencer-driven purchases is lower than the macro trends suggest.

“A brand’s physical store, its Tmall, JD presence and its owned website all outstrip live commerce as shopping channels within which to have a marketing presence,” the authors highlight.

“While many cosmetics brands such as Lancôme are reporting extremely high returns on Douyin with the help of KOL-driven live selling, our data suggests that it is brand fame and ingredient benefits that are driving this as opposed to the KOL recommendations themselves.” 

For 18 to 24-year-old women buying cosmetics, live commerce accounts for just over 20% of their main shopping channels, while this level drops to under 20% for 25 to 30-year-old women. 

“This is in stark contrast to Tmall, JD and physical stores, which all sit well above the 30% mark – it stands at 60% in Tmall’s case,” highlight the researchers. 

“The same percentage distributions are seen in the skincare sector too, showing that live selling via KOLs, while growing fast in China, should still be seen as a supporting rather than a leading channel for beauty brands.”

By Benjamin Ferrer