Who will Seize China's Ten-billions Men's Skincare Market?
- Chaileedo Press
- Sep 21, 2022
- 5 min read
It is reported that the market size of China's industry of skincare for men is expected to reach 20.7 billion yuan(about $3 billion) in 2026. International brands Unilever and Shiseido have entered the men’s skincare market in China this year.
The importance of male consumers in the cosmetics market is becoming more and more prominent. The Research Report on “He” Economy[1] 2021 shows that the proportion of male users who buy beauty and skincare products in a year is more than 50%. The average frequency of purchase is more than 2 times per quarter reaching 70%. Their amount of purchase in a year is more than 50% of 900 yuan(about $128.3). More and more men are joining the team of "face value" consumption, driving the rapid development of the men's cosmetics market
Many male consumers also said that they began using facial cleansers, toner and cream products in high school. After work, they began using sunscreen, lip balm, BB cream and so on. The male friends around will also use more basic skincare products like toner and cream. Many will use beauty products.
The rise of “He” Economy
Recently, CHAILEEDO noticed that the Chinese sharing platform Xiaohongshu released the "Men's Beauty Care Industry Future Consumption Inspiration Chart" (hereinafter referred to as "Inspiration Chart"), showing the recent new trends in men's skincare on the Xiaohongshu platform.
Xiaohongshu's male market has huge consumption potential. Data from the Xiaohongshu platform shows that as of November 2021, the monthly active users of Xiaohongshu have reached 200 million and the proportion of male users has risen to 30%. The huge number of active male consumers urgently needs to be reached by brands. The search index for men's skincare keywords is climbing and the search index rose 167% from April to May 2022. The overall volume of notes for the three categories related to the men's skincare industry is on the rise with an overall growth of 60%+.
With the rising demand for men's beauty care content on the platform, more men's beauty care creators are being attracted to join. 2022 saw a year-on-year increase of 82% for men's skincare creators. The percentage of creators with more than 600,000 followers is 47%, and the percentage of creators with 100,000 to 600,000 followers is 47%, of which 17.5% of male followers are among the followers of bloggers who focus on men's beauty care.
It is worth noting that male users now pay more attention to the actual efficacy of products, i.e. useful products. The search term "men's facial cleanser to control oil and eliminate acne" has increased by 732% in Xiaohongshu in the past six months. The term "what to do with large pores for men" is also a common search question for men. The term has increased 82% in the Xiaohongshu station in the past six months.
The rising awareness of Chinese men's skincare has led to the rapid rise of the men's beauty care industry. Brands are still able to reach a large number of active male consumers on the Xiaohongshu platform alone.
International brands are optimistic about the men’s skincare market in China
According to a report by the Foresight Industry Research Institute, with the increase in Chinese men's skincare awareness, the demand for men's skincare products has been rising. Chinese men's skincare market reached 12.5 billion yuan(about $1.8 billion) in 2020 and the market size of the Chinese men's skincare industry is expected to reach 20.7 billion yuan(about $3 billion) in 2026, with an average CAGR of 15.88% from 2021 to 2026.
The gradual release of market potential has also attracted many brands to enter the market and capture market share. International brands such as L'Oreal, Estee Lauder, Mentholatum, and Kiehl's all have their own exclusive brand lines for men. In the current Chinese market, the men's line is led by L'Oréal Group's Biotherm, as well as Estée Lauder Group's LAB SERIES and local Chinese brands such as df. For example, in the official flagship store of Biotherm on Tmall, the top-selling product is the Biotherm Homme Aqua Power Kit with 200,000+ sales volume and priced at 290 yuan(about $41.4).
This year, international brands have also developed sub-brands that specialize in men. It is worth noting that recently there have also been brands launched specifically for Asian or Chinese men. For example, at the end of May, Unilever China launched EB39, a skincare brand specifically for high-end men. It is officially positioned as "Unilever China's first light luxury men's skincare brand, the first AI algorithm-driven formula development brand, and the first meta-universe artist skincare brand". A few days after the official launch of EB39, Shiseido Group announced the upcoming launch of Sidekick, a Gen-Z men's skincare brand. Sidekick claims to focus on providing products formulated with natural ingredients for Z-generation male consumers in Asia. Sidekick also made its Japanese overseas debut in China at the International Consumer Products Expo in July this year.
Innovative men's skincare brands are also receiving capital attention. For example, the men's personal care brand Lan Seral completed a Series A round of funding of tens of millions of yuan earlier this year, led by Plum Ventures and followed by 9CCapital and JHF Capital. It has also received 6 rounds of financing, amounting to over 450 million yuan(about $64.2 million). The newcomer DearBoyFriend has also received three rounds of financing with a total amount of tens of millions of RMB.
When the personalized consumption needs of Gen-Z are released, "He consumption" has become a boom. Brands are paying more attention to investing in men's skincare and other aspects.
Men's high-end market still needs to be explored
CHAILEEDO noted that both Unilever's EB39 and Shiseido's debut Sidekick are coincidentally targeting the high-end men's skincare market. EB39 said that the brand is the first luxury men's skincare brand launched by Unilever in China, priced between 268 yuan and 630 yuan(about $38.2-$90). Shiseido also emphasized that Sidekick will be the "new luxury" in skincare brands, dedicated to creating a new image of luxury for Gen Z.
Juliangyinqin Research shows that men's skincare consumers are mainly concentrated in Tier 1 and Tier 2 cities. These geographies cover 60% of male consumers in China. mature elites in Tier 1 cities are a stonger consciousness of skincare. As male consumers pay more attention to product quality, young male beauty and personal care trends are becoming more and more high-end. The Xiaohongshu survey shows that male users have a higher willingness to pay and stronger spending power, making them a high-value, high-potential customer group. This means that high-end male skincare players are more likely to be successful in the male beauty care market.
However, in the current Chinese market, there are no men's skincare brands that can fill the high-end needs of male consumers. Although both L'Oréal and Estée Lauder has their own men's brand lines, the pricing is lower compared to women's high-end skincare. For example, single products of L'Oreal's Biotherm enjoy a price range of 190 yuan to 990 yuan(about $27.1-$141.2) in its Tmall flagship store. While another high-end brand H from the same group has a price range of 390 yuan to 3,680 yuan(about $55.6-524.8) on the same platform.
In addition to high-end, male skincare also has many refined needs. According to a survey conducted by the Hong Kong Trade Development Council, the demand of male consumers for skincare is varied. In addition to mainstream needs such as adjusting the skin's oil balance and eliminating blackheads and acne, they also want to get skin whitening, prevent air pollution, and make the skin smoother and more elastic. There are more niche needs through skincare. The current male skincare brands on the market are still positioned on pores, oil control, acne and the smell of cologne.
Huang Weiqiang, the founder of Chinese men's skincare brand MAKESENSE, said, "China is not short of consumers at the moment. What is missing is the supply of professional brands and products based on male skin research." When the "He economy" starts to rise, Chinese men's demand for skincare, even high-end skincare, will become the next growth point of the beauty industry.
PS:
[1 ]“He” Economy: “He” economy is the male consumption, as opposed to the female consumption, which is the "she economy". The reason for this is White Valentine's Day, Father's Day, etc.
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