BW Confidential - Issue #15 - September/October 2013 - (Page 52)

Market watch: Chinese consumers Shopping habits Talking shop We ask four industry players how Chinese consumers are evolving and how brands can better cater to them by Raphaëlle Choël Chinese group Shanghai Jahwa United general manager Wang Zhuo Beauty brand Clarins Group regional marketing manager travel retail Asia Pacific Olivier T allot Packaging company SGD Asia Pacific chairman and ceo Cyril Ruiz-Moise Shanghai-based brand incubator Creative Capital managing partner Louis Houdart 52 What changes have you seen in terms of how Chinese consumers buy beauty? WZ: At the low-to-middle end of the market, consumers are buying more Chinese local brands, while at the high-end they are still buying big name international brands from the US, Europe, Japan and South Korea. Most Chinese consumers are trading up, due to an increase in income and more brand awareness. Better versions of existing products, not necessarily luxury items, are well received in the market. Prices continue to go up. BB creams and liquid cleansers are two categories that have penetrated the market at an astonishing speed, while anti-aging will see a real boom in the years to come. Whitening is and will remain a must for the Chinese. Moisturizers are becoming a commodity and the color and fragrance segments are still lukewarm. OT: Chinese consumers have access to an increasing number of brands and their passion for luxury keeps growing. The key purchasing factor remains brand awareness, which is mostly driven by media investment. Regarding the type of product, there is no dramatic change in Chinese consumer purchasing habits: skincare is the key category, representing 83% of the cosmetic market. Anti-aging is the biggest segment, driving growth and accounting for more than 60% of the skincare market, followed by hydration and whitening. Within antiaging, serum is the preferred product. There is an emergence of local brands in premium cosmetics, but international brands still have the biggest share of the market. In travel retail, Chinese consumers will naturally look for the most visible brands in their domestic market and the most popular products—the ”star products”—like Double Serum or Shaping Facial Lift Serum for Clarins. Most of them have a precise idea of which products they want to purchase when they travel. Those who had not planned which product to buy will simply ask for China’s bestsellers. As a consequence of their traditional values of collectiveness and family, the “group psychology” still has a strong influence on their purchasing behavior. However, September-October 2013 - N°15 - BW Confidential

Table of Contents for the Digital Edition of BW Confidential - Issue #15 - September/October 2013

Cover
Comment
Contents
Update
Brand & retail news recap
Companies on the move
Take note Market facts, figures & trends
Best of BW Highlights from our e-publication
Launches The latest in fragrance, skincare & make-up
Interview Origins, Ojon & Darphin global president and gm Jane Lauder
Insight: Fragrance creation
Category overview
Industry views
Emerging markets
Consumer data
Role of the perfumer
Retail
Store strategy
Store concepts
Digital Beauty apps
Market watch: Chinese consumers
Overview
Shopping habits
Online sales
Radar A profile of six up-and-coming beauty brands
Travel retail: Inflight sales
Sector analysis
Channel innovations
Emerging markets Company profile: Marico
Packaging
Make-up analysis
Make-up innovations
Last word The Young Group’s Karen Young on industry trends and technology

BW Confidential - Issue #15 - September/October 2013