Seventy-five percent of young adults in China use makeup products, compared to 32% of older consumers, according to new report; less than 40% of nation's consumers across all age groups use nail products

LONDON , January 29, 2014 (press release) – just published a new market research report:

The Chinese Make-up Market: What Consumers Use and Why?

Product Synopsis

This report provides the results for the Make-up market in China from Canadean's unique, highly detailed study of consumers' Consumer Packaged Goods (CPG) consumption habits, and forms part of an overall series covering all CPG product markets. Its coverage includes, but is not limited to, consumption behaviors, the extent to which consumer trends influence their consumption, the value of the market these trends influence, and brand and private label choices as well as retailer choices in organized sector. Much of this information can also be analyzed by specific consumer groups, providing hard and fast data on consumers and markets at the product category level.
Introduction and Landscape

Why was the report written?

Marketers in the Make-up market face a major challenge. Understanding market size and segmentation is valuable, but the key to effective targeting is knowing just how valuable specific consumer groups are, and being able to quantify the impact of consumer trends. This data report solves these problems by providing survey-based data on consumer trends and consumer groups, and market data that shows the exact size of consumer groups, how much of the Make-up market they account for, and which consumer trends drive their behavior.

What is the current market landscape and what is changing?

As consumer confidence increases proportionally to economic recovery, consumer trends will be directly affected. Since the global financial crisis of 2008–2009 the organized retail market has been characterized by an increase in the amount of discounted and own-brand products. Eye, Face, Lip, and Nail Make-up are not considered essential items and therefore consumption patterns have been comparatively affected. As economic and market recovery continues over 2012, consumption patterns will record a positive trend in both the medium and heavy frequency bands and the amount of non-users should decrease.

What are the key drivers behind recent market changes?

Consumers' uptake of products and the influence of consumer trends are fundamental causes of change in markets – making knowing what these trends are and the extent of their influence crucial. The survey-based data provided in this report examines over 20 consumer trends that affect the market and examines the share of consumption across 26 consumer groups. This data provides a detailed insight into exactly who the consumer is and just how much impact the latest consumer trends are having.

What makes this report unique and essential to read?

The data provided is unique in the market as it tracks consumer behavior through to its actual value impact on a product market. This provides readers with a unique data analysis of the market, allowing marketing tactics and strategy to be updated in line with the very latest consumer behaviors.

Key Features and Benefits

Consumer data, based upon proprietary surveys and then consumer group tracking and modeling for the following specific categories: Eye Make-up, Face Make-up, Lip Make-up, and Nail Make-up.

Detailed consumer segmentation covering over 26 consumer groups, 20 consumer trends, and consumption frequency for each product category.

Consumer penetration for brands and private labels, based upon the original survey and then subsequent consumer tracking and modeling.

Unique retailer choice data at the product category level in organized sector, based upon the original survey and then subsequent consumer tracking and modeling.
Key Market Issues

Consumption frequency analysis reveals that only 32% of the Older Consumers age group use Face Make-up products compared to 75% of Older Young Adults. This is indicative of the higher consumption of Make-up products by younger consumers.

Consumption frequency analysis reveals fewer than 40% of Chinese consumers across all age groups use Nail Make-up products. Consumption is highest among Older Young Adults and Pre-Mid-Lifers, who may consider Nail Make-up as an important product for their professional lives or may consume it for social occasions.

Consumption frequency analysis reveals that fewer than 50% of Tweens & Teens and Early Young Adults use Lip Make-up products. This indicates that Lip Make-up isn't popular with students, who make up a significant percentage of these age groups, or they have been priced out of the market due to their relatively low disposable income.
Key Highlights

Private label brands have an insignificant market share in the Chinese Make-up market, representing a penetration level of less than 10%across all categories. This indicates that Make-up manufacturers in China are generally global companies who have well-established brands in both domestic and international markets.

Face make-up is the largest category by value in the market, followed by Lip Make-up and Eye Make-up.

Changing age structures and Changing lifestyles are the most important trends in the Make-up market in China. Suppliers need to account for China's large young population and the effects the country's One Child policy has had in different demographic groups, particularly on the ratio of males to females in younger age groups. Growing urbanization will also affect consumers' behavior.

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