Whitepaper on the Chinese Makeup Market

  • Although hit by the pandemic, the Chinese makeup market shows high medium- to long-term potential. As the pandemic gradually subsided, a strong rebound in consumer demand for makeup products began, not just as a result of “retaliatory consumption”, but also driven by increasingly sophisticated consumers, the rise of local brands, new media marketing and the capital market, among other factors.
  • Compared with mature European and American markets, the makeup sector in China, especially in tier 2-3 cities and lower-tier cities, has huge room for further growth. Although consumers in tier 1 cities are becoming more sophisticated, those in tier 2-3 or lower-tier cities are still beginners. As makeup consumption extends from lipstick to multiple other products, the market will swiftly become more diversified and develop at a faster pace.
  • Powered by consumers, supply chain and e-commerce/social media marketing platforms, emerging local brands stand out. Leading Chinese brands have grown exponentially in recent years, with dominant shares in the rapidly consolidating local brand segment.
  • Women under 30, including a high proportion from lower-tier cities, are the dominant consumers for emerging Chinese brands. They are mostly students and young professionals at the beginning of their careers, open to new ideas, with low incomes.
  • Overseas niche brands that emphasize textures or functions are growing fast, with accelerated entry into the market. Frequent mention of overseas niche brands on social media and online platforms has drawn consumers’ attention.
  • Women under 30 are also the dominant consumers of overseas niche brands, with different consumer profiles in each price range. Expensive brands mostly attract younger, tier 1 city consumers. Cheaper brands cater to older consumers from lower-tier cities. Overall, consumers of overseas niche brands are quite young, active and outgoing, with a low average income and a wide range of interests, and able to think independently when deciding which brand to buy.
  • A new generation of multi-brand retailers that sell makeup and lifestyle products is rising as they refine their single-store model. Multi-brand retailers are quickly gaining traction with good value for money, rapid product upgrading and immersive shopping scenarios, but their long-term success will take time to reveal.

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