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The Importance of Brands in Skincare Purchasing - China - November 2015

The Importance of Brands in Skincare Purchasing - China - November 2015

“In the crowded Chinese market where the quality of products is becoming increasingly difficult to differentiate between and more and more brands have become established, connecting with consumers on an emotional level allows brands to cut through the advertising clutter and build a deeper connection with consumers.”

– Wenwen Chen, Senior Beauty Analyst

This report answers the following questions:

What are the most bought skincare categories?
Does consumers’ brand loyalty vary from category?
What are consumers’ favourite skincare brands and their likelihood to be bought again?
What motivates consumers to choose a brand as their favourite brand over another?
Why do people not have a favourite skincare brand?
How do Mintropolitans behave towards their favourite brands?


OVERVIEW
What you need to know
Skincare products included in this report:
EXECUTIVE SUMMARY
The market
Companies and brands
Figure 1: Favourite skincare brand, by brand origin, August 2015
The consumer
Figure 2: Brand repertoire behaviour of popular skincare categories, August 2015
Figure 3: Purchase of popular skincare categories, August 2015
Figure 4: Brand purchase motivation, August 2015
What we think
ISSUES & INSIGHTS
Brands play a significant role in skincare purchase and retention
Visibility is vital
Proof the quality
Emotional engagement to help brands build long-term affection
THE MARKET
What you need to know
Skincare market remains strong despite the slowdown
Anti-pollution segment remains strong
Beauty device will storm the anti-ageing market
Competition is intense
Market size and forecast
Female skincare – Solid growth ahead
Figure 5: China female facial skincare market, value sales, 2010-14
Figure 6: Best- and worst-case forecast of China retail value sales of female facial skincare, 2010-20
Male Skincare-Strong growth via penetration of moisturiser and toner
Figure 7: China male facial skincare market, value sales, 2010-14
Figure 8: Best- and worst-case forecast of China retail value sales of male facial skincare, 2010-20
Market drivers
Government Involvement
Overseas purchases via tourism or professional overseas purchase service
E-commerce continues to grow and is shifting to mobile shopping
Towards a healthier lifestyle
KEY PLAYERS
What you need to know
L’Oréal is still the most influential player in China
Korean brands are the rising stars
Local brands become increasingly competitive
Figure 9: Correspondence analysis – The importance of brands in skincare purchasing, August 2015
Market share
Figure 10: Company market share in female facial skincare, by value, 2012-14
Who’s innovating?
New ways of advertising: Sensory advertising
Technology innovation: Virtual beauty is everywhere
Service innovation: Can it be easier?
In-store activation innovation: Disruptive In-store experience
THE CONSUMER
What you need to know
Brand plays a significant role in skincare
Visibility could drive affection
Emotional engagement will help brands stand out
Who are disengaged with brands?
Purchase of popular skincare categories
Facial cleanser is the most used and bought product while sunblock remains seasonal
Figure 11: Purchase of popular skincare categories, August 2015
Facial masks could be the new serum for low-income consumers
Figure 12: Purchase of popular skincare categories, by income, August 2015
Tier two cities show stronger purchase power on some categories
Figure 13: Purchase of popular skincare categories, by city tier, August 2015
Brand repertoire behaviour of popular skincare categories
Brand plays a significant role in skincare
Figure 14: Brand repertoire behaviour of popular skincare categories, August 2015
Male consumers worth investing in more
Figure 15: Brand repertoire behaviour of popular skincare categories, by gender, August 2015
Own-label opportunity for low-income shoppers
Figure 16: Watsons newly launched Apple Hydrating & Refining Facial Mask, Q2 2015
Brand affection
Visibility drives affection
Figure 17: Purchase of popular skincare categories, August 2015
Figure 18: Purchase of popular skincare categories, August 2015
You’re worth it
Figure 19: Favourite skincare brand, by brand origin, August 2015
Domestic brands are catching up
Figure 20: Favourite skincare brands, August 2015
Male shoppers exhibit stronger connection towards L’Oréal Paris
Figure 21: Brand affection, top four, August 2015
Female shoppers exhibit different interests across different age stages
Olay saw great acclaim in Guangzhou while Chengdu exhibits low brand engagement
Figure 22: Favourite skincare brand, by brand origin – females, by age, August 2015
Figure 23: Brand affection, by city, top four, August 2015
Figure 24: Brand affection, by city, top four, August 2015
Brand retention
Brand affection plays an extraordinary role in retention
Figure 25: Likelihood to buy favourite skincare brand, August 2015
Low income earners show low brand commitment
Figure 26: Likelihood to buy favourite skincare brand, by income, August 2015
Favourite brands
Quality, effectiveness and price
Figure 27: Brand purchase motivation, August 2015
“We don’t sell lipsticks, we sell dreams”
Figure 28: Brand purchase motivation, August 2015
Skincare will make men happy
Figure 29: Brand purchase motivation, by gender and age, August 2015
Helping older people regain confidence
Adverts and customer service are more important to the high income earners
Figure 30: Favourite brand purchase motivation, by age, August 2015
Figure 31: Favourite brand purchase motivation, by income, August 2015
French brands are winning in terms of brand communication
Figure 32: Correspondence analysis – The importance of brands in skincare purchasing, August 2015
Why people do not have a favourite skincare brand
Who are disengaged with brands?
Figure 33: I don’t have a favourite skincare brand, by gender and age, August 2015
Low income earners show a greater level of brand disengagement
Figure 34: I don’t have a favourite skincare brand, by income, August 2015
Developing a message targeting the elder group
Figure 35: Purchase motivation for low brand engagement shoppers – 40-49s, by gender, August 2015
The Mintropolitans
Why Mintropolitans?
Who are they?
Who they are
Figure 36: Demographic profile of Mintropolitans vs Non-Mintropolitans, by gender, age and personal income
Figure 37: Demographic profile of Mintropolitans vs Non-Mintropolitans, by marital status, city tier and education level
Mintropolitans demonstrate a greater level of sophistication than high income earners
Figure 38: Favourite brand purchase motivation, August 2015
Figure 39: The importance of brands in skincare purchasing– CHAID – Tree output, August 2015
Figure 40: The importance of brands in skincare purchasing – CHAID – Table output, August 2015
APPENDIX
Methodology and definitions
Survey methodology
Fan chart forecast
Correspondence analysis
Figure 41: Correspondence Analysis – The importance of brands in skincare purchasing, August 2015
CHAID analysis
Product involvement
Brand association
Abbreviations
RESEARCH METHODOLOGY
China Research Methodology
Confidence levels
Sample sizes by city
Sampling methodology and sampling structure
Our research partner - QQsurvey
QQ’s sampling and Quality control
Further Analysis
Appendix

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