Amore Pacific: Bullish on Functional Skincare and Sustainable Beauty
- Chaileedo Press
- Jan 18, 2023
- 4 min read
China's functional skincare market is growing rapidly, and the category is segmented, moving from basic skincare to sophisticated skincare.
A year's plan starts with spring, and industry changes do not wait. In 2023, what new trends will emerge in the industry? Where are the new growth points in the market? Based on the upcoming 6th China Cosmetics Trend Conference on February 13, the column "Trend Talks" interviewed 50+ founders of famous companies and industry professionals from home and abroad to help open the door to the cosmetics industry with fresh perspectives. CHAILEEDO invited Huang Yongmin, President of Amore Pacific China, to share with us the cosmetic trends in China.
CHAILEEDO: What changes in the Chinese cosmetic market have impressed you deeply past year?
Huang Yongmin: The Chinese market is a very unique market in the global beauty industry, with a very important position in three major aspects: economy, society and culture, and policies and regulations. The Chinese cosmetics market is promising and will be a golden stage of development for the cosmetics industry for a long time to come. In 2022, we witnessed the strong resilience shown by the Chinese beauty market.
As consumer needs become increasingly diverse and segmented, we find younger Chinese consumers paying more attention on skin care, including anti-aging and whitening. Developed social networks have also made cosmetics product information more transparent, which has also given rise to a group of KOLs and skincare hobbyists who research product efficacy. The Chinese efficacious skincare market is growing rapidly, and the category is segmented, moving from basic skincare to sophisticated skincare. Amore Pacific has also launched many efficacy products, such as the lip mask developed and launched by its brand LANEIGE, and the hair loss prevention efficacy shampoo and steam hair mask launched by RYO, which have become the apple of many Chinese consumers' eyes.
CHAILEEDO: Many international beauty groups have changed their strategy from "invest in China" to "to invest in China", What do you think about this change? What investment opportunities do you watch out for the Chinese market?
Huang Yongmin: As the world's fastest growing and second largest cosmetics market, the Chinese market shows tremendous vitality and potential. We believe that shifting from "invest in China" to "to invest in China" and promoting a "win-win" approach will provide a broader development space for companies and help strengthen the overall competitiveness and innovation of the Beauty Group in China, and truly gain market recognition to develop more beloved products for Chinese consumers.
Since we entered the Chinese market in 1992, we have been building a diversified brand strategy and have introduced ten brands that have been recognized by the Chinese market. At the same time, we have completed the first and second phases of the Amore (Shanghai) Beauty Park in Jiading District, Shanghai, which integrates production, R&D and logistics to flexibly respond to the diverse needs of Chinese consumers. Amore Pacific Research Institute in Jiading, Shanghai, will also focus on local product development and local consumer clinical research in the future, further expand communication with Chinese academia, venture capitalists and external institutions, strengthen cooperation, and explore new opportunities for technological innovation to develop products that meet Chinese consumer needs and are suitable for Chinese consumers.
Over the past few years, we have listened to the needs of Chinese consumers in a variety of ways, and have partnered deeply with groups such as Alibaba and Jingdong to launch a number of products customized for Chinese consumers through C2B innovation.
CHAILEEDO: What are the category opportunities for cosmetics to be explored in 2023?
Huang Yongmin: With the changing social environment and the rise of social media, Chinese consumers have increasingly demands for functional skincare. More and more concepts such as morning C and evening A and sensitive skin care are rapidly entering the vision of Chinese consumers, and the consumer mindset for functional skin care is gradually maturing. We believe this track still has very ample space for growth in the future.
The combination of sustainability and beauty has become an industry consensus, and many cosmetic companies are releasing medium and long-term sustainability strategies. Consumer demands for environmentally and socially friendly products is increasing, and sustainability is a greater impact on purchasing decisions. In our newly released "Top 5 Sustainability Commitments for 2030", we have committed to reflect 100% of environmental friendly attributes in new products and to develop brand activities that promote sustainable lifestyles for our customers. For example, Innisfree Blue Capsule Cream, which debuted in CIIE last year, is made of renewable and eco-friendly packaging and plastic-reduced replacement packs; the Little Blue Shield series from LANEIGE is Carbon Trust Water Footprint certified and packaged in FSC certified wrapping paper; and the cap and body of primera Soothing Repair Moisturizer are made of renewable plastic and glass, respectively, and the instructions are printed on the box to reduce unnecessary consumption of resources.
CHAILEEDO: What is the new breakthrough point for brands when traffic is getting more and more expensive?
Huang Yongmin: In the era of increasingly expensive traffic, it is more necessary for brands to return to the product itself, through technical research and market research, to launching beauty brands and products that meet consumer needs, and solve consumers' pain points and with high quality. In addition, it is also important to optimize the quality of service, refine the operation of "private" traffic, so that each consumer can have the best experience. This is exactly what Amore Pacific is all about: putting consumers' needs at the core of everything we do.
On the other hand, in order for brands to continue to grow, they have to reach as many new consumers as possible. Today, the online platform is more than just a sales platform, we are gradually shifting it to a composite brand marketing platform that is a "Product Development Center", a "Consumer Research Center", and an upgrade of the entire marketing chain.
ความคิดเห็น