MARKET OUTLOOK
The China hair care market is expected to display an upward trend and is estimated to grow at a CAGR of 0.94% in terms of revenue over the forecast duration of 2019 to 2025.
With increasing public awareness for personal grooming and their rising disposable incomes, more consumers in 2018 traded up to premium hair care products in China, in turn, driving up average unit price. To meet these changing consumer demands, more high-end brand manufacturers sought to strengthen their distribution, for example, by setting up flagship stores on leading online platforms. The largest B2C online platform in China, Tmall.com, saw the opening of the official flagship store of the traditional salon brand Kérastase.
Amidst the domestic economic downturn and an uncertain global economy, many manufacturers adopted a low-price strategy to drive sales and secure their share. Standard shampoos were affected the most as manufacturers had to offer heavy discounts due to category saturation. The shampoos posted the strongest growth during the forecast period albeit from a relatively small base, driven by consumers’ increasing consciousness of the importance of medicated products when treating hair problems such as dandruff and hair loss.
COMPETITIVE OUTLOOK
The major competitors in the China hair care market are La Fang International Group, L’Oréal China, Beiersdorf Hair Care, Henkel (China) Co., Ltd., Unilever China Ltd. and Procter & Gamble.