Chinese Cosmetics Market: Male Grooming Market’s Enormous Untapped Potential

Male grooming products in China have made significant market progress in recent years. Sales have increased at an annual rate of nearly 25%, to more than 8 billion RMB in 2012 up from 1.5 billion RMB in 2007.

The China cosmetics market share occupied by male grooming products also increased rapidly in recent years accounting for 4.5%, 5%, and 6.0% respectively from 2010 to 2012 in the Chinese cosmetic industry. Mingxia, market analyst of S&P Consulting notes that there is still no official data about the market share of male grooming products in 2013; if current trend continues, the market share may reach 6.5% with sales of nearly 10 billion RMB.

Speaking to Chemlinked, Chang Yizhi, a cosmetic industry expert, says that there are two main reasons underpinning the recent growth in this sector of the Chinese cosmetics market. One is that males are increasingly more concerned about their appearance and the other one is that the male grooming market is fast developing into another lucrative market segment. Another two phenomena may also be relevant to the rapid development. These are that good appearance is closely linked to relationship with female and career success; and the "Korean pretty boy trend" prevails in China.

Foreign Brands Dominate the Male Grooming Market

The Chinese cosmetic market relies heavily on foreign brands which make up 80% of the market, particularly in male grooming products according to S&P Consulting.

Kao Corporation was the first foreign company to dip its toes in the waters of the Chinese male grooming market. It is entered with its flagship male facial cleanser range under the trademark Biore, which overall performed poorly. The huge market potential wasn’t realized until L`Oreal male products became a huge success. According to S&P Consulting, the sales of L`Oreal man products reached around 2.1 billion in 2013, representing 15% annual growth.

Foreign brands, such as Estee Lauder, Biotherm, NIVEA, Mentholatum, Ponds and so on, have all been attracted by the huge market potential. At this stage L`Oreal Men Expert, NIVEA and Mentholatum with a market reaching 50 million RMB are the leading brands.

Enormous Potential Exists in the Male Grooming Market

Although male grooming market has taken off in China, there is still enormous potential for further development.

In comparison with the near-endless variety of female products, male grooming products are limited to a select few categories that focus on cleansing and oil-control. However, Chinese males are no longer satisfied with facial washing products but tend to use more diverse skin care products that offer multifunctionality. Meanwhile, independent brands focusing on males are scarce and the majority of products marketed are developed on the basis of female skin care products.

“Only 30% of male consumers purchase grooming products by themselves. Most of males use the products bought by their family members or friends.” According to Mingxia, “At present, less than 30% of male grooming market has been tapped. There is great potential market in China.”

Furthermore, the middle and high-end male grooming market is also underdeveloped, but the potential market demand is huge. According to a recent market research report by Consumption Daily, males are less concerned by product price when shopping. They trust higher quality brands more and are more loyal to a brand once the efficacy of the brand is verified.