Sees Changes and Insistence in 2023 CICPE
- Chaileedo Press
- Apr 11, 2023
- 6 min read
Once changed, a solution emerges.
As the saying goes, "The only constant in this world is always changing". In this fast-changing generation, if you want to stand firm in today's competitive environment, you should keep thinking and reacting.
The National Bureau of Statistics released the retail sales data of consumer goods from January to February 2023. Among them, the retail sales of the cosmetics category were 65.6 billion yuan ($9.53 billion), up 3.8% year-on-year. As the consumption upgrade is implemented, the growth of cosmetics also reflects the rebound of the confidence of consumers, which makes many industry players have more expectations for the recovery of cosmetics.
On this occasion, the 3rd China International Consumer Products Expo (hereinafter referred to as CICPE) was held in Haikou, Hainan from April 11 to April 15, bringing together more than 3,000 high quality brands including L'Oréal, Estée Lauder, Shiseido, Coty and others. So, what did beauty companies change? And what trends in beauty industry were shown?
International beauty giants focus on high-end brands
L'Oreal, Estee Lauder, Shiseido and Coty are four "old friends" of the CICPE. All of them brought their own high-end brands to the site in CICPE.
L'Oreal is the world's largest beauty group. It also firmly occupies the top of China's market share of beauty companies. In the CICPE, it only displayed its French high-end men's skincare brand Biotherm. At France Pavilion, Biotherm built a 15-square-meter immersive booth with 10 of Biotherm's star products on display, including Biotherm Homme Force Supreme Lotion, Biotherm Homme Force Supreme Blue Serum, Biotherm Homme Aquapower Cleanser, etc.
(Biotherm)
Estee Lauder and its 14 high-end brands participated in CICPE and launched its high-end hair care brand Aveda, which has just entered the Chinese travel retail market. The brand showed consumers the products including efficacy like perm repair, hair growth, nourishing the scalp and so on.
(Aveda)
Shiseido presented its 11 popular brands at CICPE, focusing on the travel retail exclusive product sets and three hot-selling iconic products. Among them, Shiseido Future Solution Lx series made its debut at CIIE and its high-end perfume Serge Lutens brought the La fille de Berlin 10th Anniversary Limited Edition to its offline debut in Mainland China.
(Serge Lutens)
In an exclusive interview with CHAILEEDO, Caroline Andreotti, Coty's Global Chief Commercial Officer, said that Coty has now become a group with three major beauty brands and balanced development of categories. With the theme of "Garden of the Future", Coty Group brought nine of its iconic brands to the show. These brands include Gucci Beauty, Burberry Beauty, and high-end perfume brand Tiffany.
(Left: Caroline Andreotti, Coty's Global Chief Commercial Officer)
In addition, as the key to boosting the Group's business growth in China, Coty is continuing to make efforts in the skincare category. In this year's CICPE, Lancaster, the high-end skincare brand of Coty, came with the new "Royal Face Series". The debut of the ultra-prestige skincare brand Orveda was also an important preview of the brand's official entry into the Chinese market in the second half of this year. It fully demonstrates Coty's ambition to win in China with its professional skincare experience and ability to gain the empathy of Chinese consumers who love skincare products and have rich knowledge.
Furthermore, CHAILEEDO also interviewed a personalized niche perfume brand Maison 21G. Johanna Monange, the founder of Maison 21G, said that Chinese consumers are very cautious when shopping for new niche perfumes. They look at factors such as brand and founder's background. Niche perfume brands need to ensure their brand quality and professionalism are excellent if they want to capture young consumers. As a first-time participant in the CIPE, Maison 21G hopes to focus on Generation Z and meet the needs of this group who have a unique personality and want to express themselves.
(Right: Johanna Monange, founder of Maison 21G)
Sustainability is still a long-lasting topic
This year, sustainability is still an inescapable topic for beauty groups.
Last year, Coty showcased its technology for making sustainable alcohol from captured carbon emissions by partnering with LanzaTech, a leader in next-generation green and sustainable ingredient production. It set a goal to use sustainable alcohol derived from carbon capture in most of its fragrance products by 2023. At the opening ceremony of the pavilion this year, Chen Min, General Manager of Coty China, said the event featured the first fragrances made with sustainable alcohol ingredients. In addition, ingredients developed jointly by Coty and leading global suppliers of sustainable ingredients are expected to be available to Chinese consumers soon.
(Chen Min, General Manager of Coty China)
L'Oréal's men's skincare brand Biotherm held a ceremony to launch the Product Environmental Impact Information and Rating Labeling System in China. It is understood that in March this year, Biotherm officially launched the system with four major e-commerce platforms: Tmall, JD, Douyin (Chinese version of TikTok) and WeChat.
The system informs consumers of the environmental impact of the products they buy throughout their product life cycle in five ways: environmental impact rating, manufacturing, the environmental impact of packaging and social impact of the product, intuitively and comparably. Biotherm shines in this system, with 87% of its products rated A or B, "which can help consumers make more sustainable choices." Yi Li, brand director of Biotherm, said at the launch.
(Yi Li, brand director of Biotherm)
The use of interchangeable packs for products is also a sustainable part of the equation. Shiseido has a long history of developing replacement packs, having launched its first replacement pack as early as 1926. Now it offers more than 800 replacement packs worldwide. In this year's CICPE, Shiseido exhibited 16-star replacement products offline. This year, Shiseido plans to provide more than 150 replacement products in the Chinese market to promote green growth and help the circular economy.
It is worth mentioning that Shiseido China has entered into a strategic partnership with the Ministry of Ecology and Environment of China and Alibaba Group respectively and is dedicated to promoting the trend of replacement set consumption. It advocated green consumption and helped the sustainable development of the beauty industry. In 2022, Shiseido China, the Ministry of Ecology and Environment of China and Alibaba Group jointly released the beauty industry's first White Paper on Beauty Replacement Consumer Research.
(Shiseido)
Focus on Hainan and embrace changes
The Hainan Free Trade Port has implemented a tax-free policy for imported goods which allows consumers to enjoy tax-free treatment when purchasing imported goods in Hainan. This policy will not affect consumers’ travel and shopping in Hainan, but will also allow them to enjoy more benefits of free trade port policies, which will promote consumers’ travel intentions.
“L’Oreal has many partners in Hainan and has brought 20 international brands to the Hainan market to meet the needs of tourists there.” According to Fabrice Megarbane, L'Oreal North Asia President and China CEO, tourists behave differently when traveling and have more time to “expose themselves”, “expose service” and “expose products”.
(Fabrice Megarbane, meeting with the media)
Estee Lauder has also been acting frequently in Hainan recently. The new office of Estee Lauder Tourism Retail has been established in Haikou, and the world's largest Est é e Lauder brand flagship store and Sea Blue Mystery brand flagship store have also been unveiled in Hainan, demonstrating the group's continued expansion of its business in Hainan.
2023 is the 30th year for Estee Lauder to enter China. At the opening ceremony of the exhibition hall, Fan Jiayu, President and CEO of Estee Lauder China, stated that China is the second largest market for the group, and the Chinese market has important strategic significance for the group. In the future, Estee Lauder will closely follow the needs of consumers and provide consistent high-quality product services and experiences across all channels, including online, offline, and duty-free channels.
(Fan Jiayu, President and CEO of Estee Lauder China)
Are Not only overseas giants aware of the huge opportunities in Hainan but also the leading Chinese hyaluronic acid company BLOOMAGE BIOTECH attaches great importance to Hainan.
According to the booth staff, this year's regenerative medicine segment of BLOOMAGE BIOTECH brought AOF MSC Expansion Culture Medium (MIFI), which is produced in Hainan.
During the CICPE, BLOOMAGE BIOTECH officially opened in Haikou's Science and Technology Industrial Park today. It is reported that the industrial park mainly carries three business segments: medical devices, regenerative medicine and international business. It will establish an international business center of BLOOMAGE BIOTECH medical beauty segment, register and produce innovative products of multiple categories of medical devices and medical beauty segment, and sell them to domestic and overseas markets.
(BLOOMAGE BIOTECH)
The masks have disappeared and the number of people has increased, which is a common impression among visitors. But compared to surface changes, the trend of beauty in the market is more noteworthy. Every year's exhibition is a vision for the future, and how to adapt to the changing trends of generations is a topic that every exhibitor cannot avoid.
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