China’s Beauty Device Sector Continues to Grow

China’s beauty device market underwent rapid expansion in recent years. In 2018, China's beauty device market reached a valuation of 5.029 billion yuan, up 31.3% year on year ^[1]. The market size is estimated to have reached 6.5 billion yuan in 2019 ^[2].

Growth in China's burgeoning beauty device market is being driven by increasing demand from young people for imported beauty devices. Tmall Global data shows that in the past year, the beauty device category grew by nearly 100%. More than 250,000 pieces were sold on 2019 11/11 Singles’ Day Shopping Festival, up 44% year on year. Women account for 90% of consumption in the beauty device segment, 53% of whom were born in the 1990s ^[3]. Hair removal, skincare, and other beauty devices which were previously only available in beauty salons are now becoming staple items and a vital part of home beauty routines of average consumers. 

Reasons behind the growing popularity of beauty devices in China

Improvement of consumption capability

Beauty devices in China tend to command a premium price tag with prices ranging from 1000 yuan to 10000 yuan for high quality imported products. Even beauty device brands with an average price of about 4000 yuan can still maintain monthly sales of 3000 pieces or so ^[4].

Young people in lower-tier cities are strong consumers of beauty devices and purchase more than those in first - and second-tier cities. Data from Tmall Global shows that 84% of the beauty devices on the platform were bought by people from lower-tier cities.

More cost-effective options

China’s beauty salons provide advanced anti-aging treatments like Ultherapy (a nonsurgical treatment that relies on ultrasound therapy to go deeper than other non-invasive treatments for collagen stimulation) and Thermage ( a non-invasive radiofrequency therapy that can smooth, tighten and contour skin for an overall younger-looking appearance). These treatments are usually expensive for most consumers. The average cost of Thermage is 10000-40000 yuan. The most expensive beauty devices are around 10,000 yuan. For many consumers, investment in a beauty device is now seen as a cost-saving measure. Consumers see portable household beauty devices as a viable, convenient, and cost-effective alternative to costly salon based treatments. According to Mintel's 2017 report Attitudes of Chinese consumers towards Beauty Devices, 59% of Chinese female consumers aged 20 to 49 said they had used at least one home beauty device.

Driven by influencers, celebrities, and KOLs

The scientific rationale underpinning the use of beauty devices is pretty technical and generally beyond the understanding of the public. Consumer decisions are heavily influenced by marketing. In China, beauty device sales have been driven by influencer style marketing. In recent years, web celebrities, KOLs (Key Opinion Leaders), and KOCs (Key Opinion Consumers) have become increasingly pivotal in affecting consumers’ shopping decisions. The advent of live-streaming has strengthened the impact of this style of marketing. In Taobao, the top-selling beauty devices were titled “recommended by Li Jiaqi.” Li Jiaqi is China’s top cosmetic and makeup KOL and one of the country's most prominent "live-streamers", with almost 60 million followers on Weibo, Douyin, and Taobao.

(Photo source: internet)

Market segmentation

According to Qianzhan Industry Research Institute, the beauty device market in China market can be broadly divided into two key categories:

1. facial cleansing devices

2. lifting and firming devices 

(Photo source: ChemLinked)

In recent years, hair removal devices have also become a hot category. Data shows that on the first day of this year's Tmall Women's Day Shopping Campaign, imported hair removal devices were the fastest-selling segment of the beauty device sector, experiencing growth of 1140% year on year ^[5]. 

Consumers prefer imported brands

In China, 80% of the beauty device market share is occupied by European, Japanese, and South Korean brands ^[6]. Sales of LED devices, radiofrequency, and other highly technical categories are dominated by overseas brands. YAMAN was the No.1 imported brand during the 2019 Tmall 11/11 Singles Day Shopping Festival ^[7]. In the facial cleanser segment, where the technical barriers to entry are relatively low, prices are lower, allowing domestic brands to compete with their international rivals. On the Tmall platform, domestic branded facial cleanser devices such as MYONE, ROBLL, and CINGHAO have the highest monthly sales volume (over 50,000 units). 

Mainstream overseas beauty devices in the market and their origins

Tmall is the most important platform for selling beauty devices

Tmall has been exploring and incubating brands in the beauty device category since 2015. In that year, Clarisonic and Yaman were launched in Tmall and Tmall Global. Japan MTG Co., LTD. (ReFa’s parent company) reached exclusive strategic cooperation with Tmall Global in 2016. In 2017, the transaction volume of imported beauty devices in Tmall Global grew by nearly 700%. During the 2017 Tmall 618 Mid-Year Shopping Festival, imported beauty devices became the most popular imported product category among Chinese consumers. Beauty device brands, including ReFa and Hitachi, have launched hundreds of products, with an average unit price of 2000 yuan. These relatively high price tags haven't dissuaded Chinese consumers from buying. In just the first 24 minutes of the 2017 618 festival, more than 5,000 high-end beauty devices were sold on Tmall Global ^[8].

Also, in 2017, the Asian Cosmetology Alliance was established in Tokyo of Japan led by Tmall Global. Five major Japanese brands, including ReFa, Hitachi, Exideal, ARTISTIC&CO, and YAMAN, jointly announced that Tmall Global was the only official authorized retailer in the Chinese market. In 2019, Tmall Global reached cooperation with South Korea's four major beauty device brands Ulike, Omelon, Cellreturn, and DPC, aiming at introducing more innovative beauty devices for Chinese consumers. According to Tmall Global, it plans to incubate more than 10 South Korean beauty device brands and achieve annual sales of more than 100 million yuan in the next two years.

Top 5 brands by monthly sale volume in Tmall Global (as of April 1)