F REIGN TRADE - 中国国际贸易促进委员会

Attention Rankings of Natural Cosmetics Brands in Q3, 2010
Sinoway Herb
HERBORIST
Avène
THE FACE SHOP
FANCL
VICHY
LA ROCHE-POSAY
THE BODY SHOP
KI EH L'S
L'OCCITANE
9.21%
8.26%
7.84%
7.04%
6.37%
5.50%
5.04%
11.58%
14.58%
13.48%
(Source: Baidu Data Research Center, Nov. 2010)
Looking at skin care products, the report showed that in
Q3 2010, L’OREAL PARIS ranked first with the attention of
6.37%, while the following No. 2-10 were all within 4%-2%.
The runner-up was Sinoway Herb with the attention of 6.37%,
third was CLINIQUE with 4.05%. The others in the top 10 in
order of attention were, HERBORIST, OLAY, Estee Lauder,
Avène, Neutrogena, MENTHOLATUM and SHISEIDO.
For color cosmetics, MAYBELLINE NEW YORK,
ZA and Shu Uemura were the top 3 with the attentions of
11.51%, 9.03% and 4.98% respectively. The others in the top
10 were Dior, REVLON, SKIN79, Lancome, DHC and
opera. All the brands were foreign.
As for perfume, the report shows that CHANEL and
Dior were the top 2 brands given the most attention, with
13.56% and 13.50% respectively, well ahead of others in the
top 10. The other brands in the top 10 were as follows: Elisabeth
Arden, Calvin Klein, Lancome, BURBERRY, ANNA
SUI, VERSACE, adidas and BVLGARI. CHANEL and
Dior were the best known by domestic consumers for their
classic fragrance, so its no wonder they took the top 2 spots.
adidas was given more attention than before due to men’s increasing
attention on fragrances.
Nowadays, men are paying more attention to cosmetics.
This was shown in the Q3 2010 report, where men’s favorite
brands were L’OREAL, NIVEA and METHOLATUM.
The others in the top 10 were GF, BIOTHERM, OLAY, Biore,
GARNIER, CLINIQUE and UNO in terms of attention.
Foreign brands’ strengths
Foreign brands are trying to take a larger share of the
Chinese market. It seems consumers’ favorite brands are
mostly foreign brands, so how have these brands realized
such success? After analysis here are the following reasons:
First, foreign brands tend to adjust their market strategy according
to the social formation of the target market. Now China
is an M-shaped society which means the rich and the poor occupy
the two ends of the spectrum with a not that large middle class.
For instance, L’OREAL has carefully studied Chinese
society. Its high-end, low-and-middle products focus on different
consumers. It is said that two-thirds of its sales volume is
derived from third-tier cities, and 61% of its skin care products’
sales are from third or even fourth-tier cities. Another example
is Maybelline, which reduced the price of its products
to compete with domestic brands. This is the transformation
strategy that foreign brands rely on to attract more consumers.
Second, foreign brands invest much more into research
and development of new products, which are continuously
upgrading and improving. Take Crest as an example, when
it entered China in 1996, it had a rough time as it did not
fully understand the target market well. After a while, Crest
learned to take consumer demands as the starting point for
its R&D effort. Through adequate market research, Crest’s
R&D team launched new products with natural ingredients,
like herbal toothpaste, making its share in the Chinese market
surge and allowing it to overcome Colgate, thereby taking
the lead in the toothpaste industry.
Third, foreign brands’ subdivision has a specific aim with
consumers as the clear target. For instance, L’OREAL has
over 10 brands and more than 400 different kinds of products
that it needs to provide customer service for. However, domestic
brands have only several dozen products at most.
Last but not least, foreign brands have a big say in international
and domestic fashion. Things like advertisements, brand
image, and brand story all contribute to their success in the market,
while domestic brands still have a long way to go in this field.
With foreign brands grabbing a greater share of the Chinese
market, domestic brands are worrying about their future.
As the saying goes, “Necessity is the mother of invention”, domestic
brands are trying vigorously to implement innovation.
The first national brand established in 1862, Kong Feng
Chun, is focusing more attention on R&D. The products it
has developed in just a few years are equivalent to the advances
it had made over the last century.
“Though foreign brands have taken a large share of the
Chinese market, the future of domestic brands should be
much better due to their hard work and diligence. We all
have confidence,” said Ma Ya, the President of the Chamber
of Beauty Culture & Cosmetics at the All-China Federation
of Industry & Commerce.
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