The Chinese Men's Cosmetic Market: Guangzhou, Hong Kong and ...

cosmetics (and the local language term that translates to “metrosexuals”), studies show
that 50% of purchases at L’Oreal’s China stores come from women buying for their
husbands and boyfriends (Balfour).
Overview of the Cosmetic Market
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Hong Kong & Macau
The manufacturing sector for cosmetics and toiletries in Hong Kong is fairly
small. Most local manufacturers produce toiletries and perfumes that compete at a low
price level. In the mid to high end market, international brands overtake local ones.
Lately, international companies such as Sulwhasoo, Kiehl’s and L’Occitane are making
men’s skin care products in addition to their female product lines. (HKTDC)
As of December 2010, there were 80 establishments in Hong Kong producing
cosmetics. Most of the companies in the industry are traders who sell to the Chinese
mainland, United States, Macau, Japan, Southeast Asia and the European markets.
(HKTDC) The Chinese Mainland accounts for 19.7% of Hong Kong’s cosmetic product
exports, followed closely by Macau, with 19.5%. The United States stands at number
three, with 13% of exports from Hong Kong. (HKTDC)
Some mid to high-end foreign brands procure sales counters in department stores
and often set up outlets within shopping centers. Salons often sell professional grade
products and specialty cosmetics chains sell international brands at heavily discounted
prices. International brands have strengthened their sales by selling their products through
various internet sites. (HKTDC)
Research shows that Hong Kong consumers are using popular brands and
products made from natural ingredients. (New Zealand Trade and Enterprise) Large
product categories in this segment include facial moisturizers, anti-aging products, makeup
foundation, lipsticks and eye makeup. (New Zealand Trade and Enterprise)
In Hong Kong, the skincare market grew 9% from 2002 to 2007. In 2007, 85% of
the market share was comprised of skincare products. Another 12% market share was
evenly divided between body products and sun care. (New Zealand Trade and Enterprise)
Increasing amounts of tourists from mainland China have boosted cosmetic
industry sales. “According to the Hong Kong Tourism Board, about 80% of the mainland
Chinese tourists who visited Hong Kong ‘went shopping’ and cosmetic and skincare
products were among their top 3 shopping purchases”. (New Zealand Trade and
Enterprise)
As the average age in China increases, there continues to be a strong demand for
anti-aging “cosmeceutical” products that feature a concoction of vitamins, herbs, and
sometimes pharmaceuticals such as vitamin C lotions, tea tree oil-infused cleansers and
collagen masks.
In Hong Kong, men currently make up less than 10% of the total expenditure on
skincare products. However, many well established brands such as L’Oreal and Shiseido