Spes: The Opportunity of Efficacy Health&Personal Care is Coming
- Chaileedo Press
- Oct 2, 2022
- 3 min read
After the basic cleansing needs of Chinese consumers are fully satisfied, the demand for refined health&personal care and hair repair will continue to increase.
The beauty industry has encountered various challenges this year. The total retail sales of consumer goods in China for cosmetics was 245.3 billion yuan(about $34.1 billion) from January to August 2022, down 6.4% year-on-year. However, China's efficacy skincare market has been growing rapidly in recent years, with a compound annual growth rate of 23.4%, and is expected to reach 41.1 billion yuan(about $5.7 billion) in 2022. CHAILEEDO invited Zheng Rujin the founder and CEO of Spes to share with us the cosmetic trends in China.
CHAILEEDO: From your perspective, what are the biggest trends in the cosmetic industry next year?
Zheng Rujing: From the top sector of hair personal care, user demand is driving the iteration of head wash products to efficacy wash.
On the one hand, the sector of hair care will be more segmented like the face, and the classification for different hair and head skin textures will be more refined. The demand for the ingredients of the health & personal care is also increasingly increased, and the awareness of the facial care grade ingredients is strengthening. The consumption growth rate of the hair care with useful ingredients in the field of hair care will continue to be high. The efficacy-centric group concerned about hair care will be wider. On the other hand, with the strengthening of regulatory standardization, it also provides the basis for the hair care market upgrading to the efficacy.
This also forces brands to pay more and more attention to the investment in product development, forming a healthy competition for the industry. Like Spes, we will go deeper into the ingredients for formula innovation when developing products, and focus on self-sufficiency of core formula.
On the other hand, we support the innovation and R&D of Chinese ingredients and explore the localization of core ingredients, so as to build a product barrier from ingredients to formulations.
CHAILEEDO: How should the innovative cosmetic brands go offline?
Zheng Rujing: The offline channel is very "heavy" for new brands, and because it is "heavy", it can form long-term brand compound interest. When developing offline channels, we should focus on the core channels first, so that we can exercise our team's combat ability and have a certain voice in the core channels before we have the opportunity to expand other channels. Spes began to layout offline channels at the beginning of the brand's establishment in order to build a healthy channel structure. It has successively reached cooperation with channels such as Freshippo, Watsons, Mannings, CenturyMart, China Resources, KKV and The Colorist, and now covers more than 10,000 stores in core shopping areas in more than 90% of provinces and cities nationwide.
Many innovative brands rely on the keen insight of new groups of people and new needs. The brands need make the niche category to the extreme. A brand can get rapid growth online, but when it enter offline channels, the product must also consider the strong connection with offline consumer groups and consumption scenarios. It is not enough just to display the goods offline, how to promote sales and repurchase is the key.
Take Spes Washing-free Hair Spray as an example, we will form a closed loop of product development and content marketing, such as in the subway, hot pot restaurants, offices and other scenarios, to show its product power to quickly remove oil from hair, to avoid embarrassment in social, so that consumers form brand associations in specific scenarios, the online advantage into offline momentum, this product in the global head retailer a month later, quickly jumped to the TOP 1 in sales in the no-wash spray category one month after its entry into global head retailers.
CHAILEEDO: Which categories are you optimistic about next year and why?
Zheng Rujing: Categories need to be seen in the context of user demand. After the basic cleansing needs of Chinese consumers are fully satisfied, the demand for refined health&personal care and hair repair will continue to increase, promoting the innovation of various new forms and textures of hair repair categories.
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