Girlsn Beauty

February 14, 2018 Cosmetics

Immense growth of the lipsticks economy in China

According to various researchers, lipsticks sales are the major reason behind the growth of China’s cosmetic sales. In China, this trend has shown remarkable growth, evolving consumer behaviour and cultural shifts. This article shows how lipstick became the highest sales in cosmetics in China and its implications for the beauty industry.

According to recent research by Mintel, lipstick sales are the driving force behind the growth of coloured cosmetics sales in China.
China’s 2017 report reported that lip colour’s share of China’s makeup sales increased from 15 percent to 22 percent from 2016 to last year. It seems to continue to grow further as 64 percent of Chinese women think that lipstick is the most important colour cosmetic product ever. 

Jessica Jin, Mintel’s associate beauty director, said that lipsticks are now nearly universal in China. 95 per cent of urban Chinese female consumers have been using lipstick or lip gloss in the last six months.

She also said that there is harmony across China and that doing makeup is a very useful way to boost confidence and at the same time, it is also a way of showing respect to others.

Almost 63% of Chinese women have said that they almost wear makeup. In 2016, up from 38% of surveyed women said the same.

Economic growth through lipsticks

During difficult times, we often find ourselves buying smaller products which are reasonable and affordable in price. And, lipsticks are one of those cosmetics which do not cost much compared to others. As a result, no matter the economic crisis, people do buy lipsticks. And, in China, the lipstick economy reached the top during the COVID-19 pandemic especially, as people were constantly looking for ways to maintain a sense of normalcy and treat themselves despite the situation with the attitude we will overcome this too.

Also, lipsticks are not only seen as a cosmetic product in China. It’s a way of expressing individuality and confidence for women in China and with the rise of the middle class, women are buying more lipstick products for their daily beauty routines. Because of these lipsticks brands and shades are becoming more popular in China.

“It is easy to look natural and good but big trends in makeup are healthy-looking skin, it is the outstanding goal of being beautiful”, she said.

41% of Chinese women do makeup ‘natural’, 17% follow ‘fresh’, 12% do light makeup and 12% of them don’t do makeup. It indicates the desire for good and healthy skin. This is especially true among women between the ages of 20 to 25 who have an extreme desire for a fresh-face look.

The report has also shown that Chinese consumers are also showing more attraction towards beauty brands in China. It is been selected by more than 30% of people who wear makeup.

The director of the centre, Chi Jianyi said, “ The coloring agent we produce is environmentally friendly”.

The colourant was invented by Zhang Hongjie. He was a member of the Chinese Academy of Science. Zhang told China Daily recently this year that due to its perfect colouring and nontoxic properties, it can replace most existing colouring in the market.

Jin said, “We have seen Chinese brands rapidly increase their reputation which is not only in the cosmetic colour category but also in the category of beauty and personal care”.

What Chinese brands are selling is not patriotism but rather their goal is surely gaining the quality of products and getting brand equity and technology.

Even though each of them has still less than 10% of the total market, Chinese brands Carslan and Marie Dalgar and South Korean brand, Amore Pacific, are companies which are getting a share of the market with all of them situated at huge price levels.

Mintel has estimated that the colour cosmetic market of China will grow at a compound annual growth rate (CAGR) of 10.2% in the next five years to reach RMB 49,662 million by 2022.