China Insights

Dabao most chosen cosmetics brand for Chinese consumers

Jason Yu

Greater China General Manager

Brands 08.10.2016 / 07:40

Woman with lotion bottle 2 col

Among the top 10 most chosen skin care and colour make-up brands, four are Chinese brands.

Dabao (大宝) is the most chosen cosmetic brand by Chinese consumers in the 52 weeks by June, 2016, according to Kantar Worldpanel’s 2016 Cosmetic Brand Footprint ranking released at the end of September, 2016. In the course of the period, Dabao products have been chosen by 23.1% of the population, on average 2 times a year, meaning Dabao products were put into shoppers’ baskets 76.7 million times.

Pechoin (百雀羚) occupies second place and was the fastest riser in terms of consumer touch points, adding more than 3.6 million families, or an increase of 22% over a year ago,  to its brand over the 52 weeks.

Kantar Worldpanel’s Brand Footprint Ranking reveals the strength of brands and uses an insightful metric called Consumer Reach Points which measures how many households around the world are buying a brand (its penetration) and how often (the number of times shoppers acquire the brand).

Kantar Worldpanel China continuously measures household purchases over 100 product categories including cosmetics, food and beverages and the toiletry/household sector through its 40,000 sample families. Its national urban panel covers 20 provinces and four municipality cities (Beijing, Tianjin, Shanghai and Chongqing).

The findings from this new report indicated that the skin care and colour make-up sector in China grew by 12% and 10% respectively in the 52 weeks to June 2016, far higher than 3.1% growth reported for total FMCG. The cosmetic sector remains an important growth engine of the FMCG market in China. Chinese consumers are becoming more sophisticated in their beauty usage opting to buy more premium products which is fuelling the value growth of these sectors. This presents brand new opportunities to both international and domestic players.

Top 10 China Cosmetic brands in 2016 revealed by the Brand Footprint Report

Rank 2016 Brand Name Manufacturer Consumer reach points (m) Penetration (%) Frequency (times)
1 Dabao Johnson & Johnson 76.67 23.1 2.0
2 Pechoin Shanghai Pechoin Company 71.58 16.7 1.9
3 Olay P&G 48.13 12.6 1.9
4 L'Oreal Paris L'Oréal Group 42.19 11.8 1.7
5 Inoherb Shanghai Inoherb Cosmetics Company 34.70 9.6 1.8
6 Nivea Beiersdorf AG 30.53 10.7 1.6
7 Watsons A.S.Watson Group 23.83 7.1 1.7
8 Mentholatum Mentholatum Company  23.10 9.0 1.5
9 Kans Shanghai Chicmax Cosmetics Company 22.74 5.9 1.5
10 Mary Kay  Mary Kay Company  21.36 3.3 2.2

Despite strong growth in the cosmetic market, the competitive landscape in China also went through rapid transformation. Amongst all the 4,000 brands tracked by Kantar Worldpanel, only 40% of them saw an increase in net sales. Amongst the top 20 growing brands in the market, a rise in penetration contributed 78% to their collective growth proving that the continual recruitment of shoppers is the key way to grow sales. Aside from Pechoin, Hans (韩束), Innisfree, Dr. Morita and Shiseido also managed to grow their consumer reach faster than the other players.

Chinese consumers today have unprecedented choices available to them thanks to overseas travel and e-commerce, yet the growth of Chinese brands and South Korean/Japanese brands are noticeable. While consumers are more ready to trade up, those brands who advocate health, efficacy and fun are winning consumers’ choices, on the back of unique product and marketing innovation as well as smart Omni-Channel deployment.

In the report, Kantar Worldpanel also highlights the following key facts:

- Cosmetic sector maintained double digit growth. This was mostly driven by premiumisation, which made 82% contribution to the market growth.

- Chinese consumers are smarter and their decision making is more sophisticated; At each purchase occasion, consumers can choose brands at different price levels.

- Essence will be the next star segment – products at different price points with different functions are appealing to young consumers

- There is still significant potential to drive trial of colour cosmetics, and cushion is becoming the point of market entry.

- Consumers are embracing natural and safe product concepts. Successful brands differentiate themselves by advocating new concepts, benefits and usage occasions as well as pure and natural ingredients.

Source: Kantar Worldpanel

Editor's notes

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