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

value growth from 2008-2009 (Nielson). The significant amount of growth has come
from the recent emergence of men’s cosmetic products. Hong Kong is one of the most
significant areas of opportunity for men’s skin care products. The Deloitte Business case
study states that Hong Kong is an important launch pad for marketing cosmetics and
skincare products into the mainland Chinese market (Deloitte). Over 23 million tourists
visit Hong Kong for shopping and tourism each year with a majority of those visitors
from the mainland. Retailers and distributors are eager to increase the variety of men’s
cosmetic products and are looking to cater to needs of the local population (Deloitte). In
2010, the size of the cosmetic market was estimated at $1.169 billion and is expected to
grow 21% in 2012. Male consumers in Hong Kong between 30 and 49 represent the
largest age group, have the highest disposable income, and are the biggest buyers of
men’s skincare products (Deloitte). To help meet the demands of the market, there has
been an increase in the number of men-only skincare salons opening throughout this
region (Deloitte).
Market Demand
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Size of Market and Potential Market Growth
As the job markets are becoming more saturated and competitive, men are
beginning to show more of an interest in how they look. This phenomenon has created a
large market for men’s cosmetic products. The male cosmetic industry in China is seeing
aggressive growth rates in several regions. With about ten percent of Chinese men
already using skin care products made specifically for them the market is projected to
expand by 28.7 percent by 2014 (Terradaily.com). Research indicates that as a man’s
income rises in China they will begin to purchase personal care cosmetics in order for
them to get ahead professionally. The current leading consumers of men’s cosmetics in
China are the white-collar workers who are entrepreneurs with above average salaries.
China will account for half of global growth in the men’s skin care market from 2009-
2014 which opens up huge opportunity for growth for cosmetic companies
(Euromonitor). Even though 500 of the 3500 cosmetic manufactures in China are foreign
owned they control eighty percent of the market share (Factsanddetails.com/China). In
2010 the sale of men’s skin care products increased by thirty percent to $280 million in
China, ahead of the United States (Terradaily.com). Increasing consumer-lending
demand for specialized products will drive the Chinese cosmetics and toiletries market to
grow at a compound annual growth rate of around 12% during 2011-2014, says
RNCOS.com. With such a spike in demand for male cosmetics, spa’s are unable to keep
up with demand which results in opportunity for retail sales for companies like Proctor
and Gamble and L’Oreal.
Research demonstrates that men are embarrassed to buy cosmetics for themselves
and often have a family member or wife purchase the products for them which results in
female and male cosmetics to be sold together in China for ease of sale. In 2010, the
population in China was 1,339,724,852 with 51.27% being males. With about 72% of the