A New Consumer Mindset in China’s Beauty Market

After three years of lockdowns as part of its “zero-covid” policy, China entered a new phase of the pandemic when all restrictive measures were dropped abruptly in December. While there is much discussion surrounding what lies ahead for the economy in general and the beauty market in particular, early results are promising. The country’s most significant holiday, Chinese Lunar New Year, is a bellwether of consumer mindset in this new post-covid era.

Despite the fact that the battle against covid-19 surges continues, the service industry (tourism, catering and film) and some consumer product categories—mainly basic necessities like food and drink and advanced household appliances (electric cars, etc.)—stand to benefit the most from this holiday, with year-on-year growth of 13.5% and 10% respectively, according to the state media’s reports. While the beauty sector as a whole hasn’t outperformed as in previous years, prestige cosmetics and limited editions for the new year are leading the way.

The beauty industry is tapping into the current consumer mindset of seeking relaxation and escapism in times of health and economic uncertainty. One example is the popularity of sensorial skin care. These products feature enhanced skin feel and smell. Similarly, there is growing demand for gentle aesthetic beauty. This is an accessible middle ground between traditional cosmetics and invasive treatments. Gentle aesthetic beauty is perceived to be more efficacious than cosmetics, yet less expense than procedures. Then there’s efficacious skin care, which is positioned as more effective than traditional skin care formulas. All of these trends tap into the demand for health/wellness, user experience and value/cost-effectiveness. But in these post-pandemic days, nothing is more on-trend than clean beauty.

Clean Is the Word

The concept of clean beauty has been steadily gaining in popularity for the past two years. Now, industry observers predict clean beauty will be the next big thing in the beauty market. In 2021, more than 70 clean beauty brands debuted on Tmall Global. Sales in the category surged more than 600% year-on-year. It’s no surprise, then, that there’s been a big surge in discussions centering around “clean beauty” and “clean formulation.” Much of the chatter can be found on social media platforms here, including LBR (Little Red Books) and Douyin (Chinese version of TikTok).

Digital giants were among the first to jump on the bandwagon. One noticeable example is LBR, which is one of the most popular tools for content/recommendation marketing. In Chinese, this type of marketing is termed “Zhongcao,” which translates to “planting seeds.” LBR made its first foray into the beauty sector last February by co-investing in Dewy Lab, a local startup featuring clean makeup. Another high-profile move came from Tmall in August. The online retail giant partnered with several local media companies to publicized its own clean beauty definition. That definition may be summarized as “Four Zero”—zero toxic ingredient, zero environmental harm, zero animal cruelty and zero waste.

Meanwhile beauty brands, both international and domestic ones, strive to keep themselves front and center in this “clean” arena. Local startups are particularly proactive, such as the aforementioned Dewy Lab, as well as ClorisLand, Sober Beauty, onTop and Moja; all promote minimalist skin care. One highly-publicized example is ClorisLand, which is positioned as “Eastern Clean Beauty.” Formulas include active ingredients derived from peony and hibiscus flowers. Last July, ClorisLand developed a clean beauty standard in partnership with some local industry organizations including Guangzhou Cosmetic Association. Claiming to be the first clean beauty group standard in China, it provides definitions and guidance for the development, manufacture, packaging, transporting and usage of clean beauty products.

New Standards

Of course, established beauty companies are not content to lag behind these upstarts. For example, One Leaf repositioned itself as Clean & Functional Beauty from original botanical beauty. Its formulas feature olea europaea. The brand worked with several industry organizations including Shanghai Daily Chemistry Trade Association to create its own natural/clean beauty standards. These standards, dubbed Technical Definition and Calculation Guidance for Natural Ingredients in Cosmetics, were followed by General Evaluation Standards on Clean Personal Care Products and Green Personal Care Products. They are reportedly supported by other well-known domestic players including Shanghai Jahwa, Yunnan Botanee, Shanghai Becky and Lin Qingxuan.

Obviously, there is plenty of activity within the clean beauty space. Yet, there are big hurdles to overcome before the concept becomes more than a niche market. The segment lacks real regulatory supervision and well-recognized and clear definitions. Add to that, a lack of consumer knowledge regarding clean beauty. In other words, China is in the same position as other markets around the world.

Beyond the Buzz

On the surface, the general idea of clean beauty in China seems similar: use gentle and low-irritating ingredients whenever possible; avoid or minimize those perceived less friendly to consumers including traditional preservatives, emulsifiers and alcohols; adopt eco-friendly packaging and/or green claims verified by well-recognized certifiers; and pledge no animal testing.

When it comes to the details, however, these definitions and classifications vary greatly among the different industry groups, notably the “clean” and “free of” ingredient lists, as well as no animal testing/zero cruelty. This means such claims are hard to put into practice right now. Consequently, there’s a chasm between the industry’s efforts and the consumer’s understanding.

So What’s Next?

In this new normal, who wins over the beauty consumer in China? Recent investment may shed some light. Based on 179 beauty-related investments last year, the most popular were fragrance and fragranced products touting emotional care. That’s ahead of men’s care, efficacious skin care and premium beauty.

All in all, China’s beauty sector remains resilient alongside a rapidly evolving consumer mindset. While efficacy is always top-of-mind with consumers, followed by safety and product experience, price is becoming essential even for mass beauty purchases. A recent joke circulating on the internet reflects this frugal mindset: “While you expect our revenge shopping (a popular Chinese term describing consumer behavior of purchasing out of excess excitement upon the reopening), we just decided to drop this hatred.”

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Ally Dai
Freelance Writer
allisondai@126.com
allydai73@gmail.com
 
Ally Dai is a freelance writer/independent consultant based in Shanghai. She has covered the beauty industry for more than 15 years. Previously a senior editor and industry researcher, she now works on content creation with publishing houses, event organizers and PR companies in the personal care and life science industries.