The first Asian Cosmetic Innovation Summit was held from December 16 to 17 in Shanghai. During the event both domestic and international cosmetics industry representatives gathered to network, collaborate and explore the opportunities in marketing, packaging, R&D, technology, retail and much more. The top eight trends expected to shape markets and drive consumer demand in 2020 were also outlined.
Organic beauty and clean label on the rise
The growing demand for organic products, which feature natural, healthy and safe ingredients, is expected to catalyze innovation and development of more new products. Data provided by Australia-based organic skincare brand Floropathy shows that the organic market has grown fast globally, with the market reaching $11.5 billion in 2018. According to forecasts, the market will reach $23.6 billion by the end of 2025. In China, the organic market is expected to grow at an annual rate of more than 20%.
Generation Z effect
Generation Z (those born from 1995-2009), are a demographic of young and diversified consumers with distinct tastes, attitudes, values, and styles. Chinese Gen Z attach great importance to authenticity and personality. Eye-catching packages resonate with this group and reflect their desire for creative and engaging products that speak directly to them.
High-tech playing a vital role
Technological innovation is bringing new opportunities throughout the cosmetics value chain. AI offers consumers unprecedented opportunities to tailor cosmetics solutions to their individual requirements, while AR allows consumers to interact with brands and products in ways that were not possible before.
The face of retail and marketing has been irrevocably altered with widespread adoption and engagement with live streaming. During the 11/11 Shopping Festival, live streaming played a significant role in driving online sales. 90% of brands on Tmall leveraged live-streaming and more than 50% of merchants saw an increase in GMV directly attributable to utilization of live-streaming. It is expected that the widespread utilization of 5G in 2020 will further upgrade the consumption experience of Chinese consumers and improve live-streaming.
Henkel launched a smart hair color recommendation program called "Choici", which helps consumers find a suitable hair color. China's domestic biotechnology company Natong introduced its nanotips, which can be used to address skin flaws such as coarse pores, fine lines, acne scars, pits, and prints, etc.
Big data providing consumers insights
The application of big data in the cosmetics industry can help brands better understand consumers and respond more quickly to rapidly evolving changes in consumer preference, and emerging trends.
According to Lavetor, one of China's marketing technology agencies, by leveraging big data and machine learning, cosmetics brands can track the latest trends among consumers, spanning from trending topics to brands, products, and events, which is of great help to optimize product development and marketing.
For instance, the ability of companies to respond to the emergence of the evidence-based efficacy trend in cosmetics is based on the big data analysis of the large volume of online traffic associated with discussion, searches, forum comments, etc. related to cutting edge scientific breakthrough in the field of cosmetics.
Sustainability gaining increasing attention
Environmental protection and sustainable development are also trending in the cosmetics industry, as both consumers and brands have felt the need to proceed in a way that is better for the planet. This concept will manifest itself in the cosmetics industry in the utilization of biodegradable packaging, environmentally friendly product formulation and even cruelty-free trends.
Popularization of customized cosmetics
Greater appreciation for the huge variability in our population is now impacting both consumers and the cosmetic enterprise developing the products which these consumers want. The ability to offer cosmetics that can better address the unique requirements of individual consumers is becoming an increasingly important driver of consumer preference and product development. Many multinationals are now investing heavily in offering product tailoring solutions which allow consumers to select ingredients, ingredient ratios, product sizes, delivery methods that are better suited to meet the individual demands of each consumer.
Crossover and co-branding
Crossover and co-branding are increasingly adopted by both international and domestic cosmetics brands. For example, in early 2019, M·A·C launched a hugely popular lipstick collection co-branded with China's popular mobile game "Honor of Kings". The collections were sold out in just under one hour on both Wechat and Tmall platforms.
Here are the 4 major co-branding strategies according to AFu, a Chinese domestic cosmetic brand mainly selling essential oil and has made a series of attempts in this regard:
Use of famous cartoons and animation IP (e.g. Disney);
Cooperation with luxury brands, stars and web celebrities;
Use of the hottest elements from movie and TV dramas, in combination with the brand's own features;
Cooperation with brands of totally different styles and areas.
Social media content marketing increasingly shaping demand
ChemLinked is the media partner of this year's Asian Cosmetic Innovation Summit and can help with cosmetics market access or strategies/research. Contact us now to further discuss how to answer your needs in China and the AP region.