INSIGHTS
Chinese Online Cosmetic Market Data (Sep-Nov 2022)
BY Rita BaoJan 03, 2023
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market-banner-14-1.gifOverall Data

Ali Platforms

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In September 2022, due to the return of the top livestreamer Austin Li, coupled with Tmall 99 Good Deal shopping promotion, the sales of skincare and makeup products on Ali platforms achieved 14.38 and 5.18 billion yuan. Although down 2.9% and 19.2% respectively on a year-on-year (YoY) basis, the decline was narrower than that in August 2022.

In October 2022, the consumption of skincare and makeup products was bumped by the incoming Double 11 Shopping Festival. As a result, the sales of the two categories dropped to 13.73 and 4.6 billion yuan, with a YoY decrease of 12.1% and 27%.

In November 2022, driven by the Double 11 Shopping Festival, the sales of skincare and makeup products increased significantly month-on-month (MoM), reaching 47.67 billion and 10.1 billion yuan respectively. However, the sales decreased by 6% and 23.3% over the same period last year.

From January to November 2022, the total GMV of skincare and makeup products was 261.8 billion yuan, with a YoY decrease of 13%. This performance is a sharp downturn compared to the growth of 24.1% and 8.7% in 2020 and 2021.

In addition, due to the COVID-19 impact and weak consumer confidence, consumers become more rational in consumption and are likely to purchase highly cost-effective products through promotions. According to MKTINDEX, in 2022, the sales of beauty products in promotion months (June and November) accounted for 38.4% of the total sales of beauty products in the past 11 months, an increase of 4.7% and 1.6% compared to the figure in 2020 and 2021.

Douyin

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Douyin e-commerce continues to siphon off users and revenue from comprehensive e-commerce platforms. In December 2021, the total GMV of beauty products on Douyin equaled to 15% of the total beauty GMV on Ali and JD. This figure rose to 26% in September 2022. In addition, Douyin performed remarkably in promotions. In October and November 2022, the GMVs of skincare and makeup products exceeded 17.5 and 5 billion yuan, with nearly 100% YoY growth.

Brand Performance

Ali Platforms

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In Q3 2022, International beauty brands still dominated the online market on Ali platforms, with Estée Lauder, Lancôme and L'Oréal occupying the top 3 places. Chinese beauty brands occupied 5 places in the Top 20 list, among which Proya ranked fifth and Winona tenth. In terms of growth, Olay performed noticeably well, with a YoY increase of 18%. Winona and Clarins maintained low single-digit growth, Estée Lauder remained steady, while the rest declined by varying degrees.

In October and November 2022, the Double 11 Shopping Festival drove the growth of most brands. Chinese brands Proya, Winona, and Quadha achieved growth of more than 50%. Among international brands, Olay was the most prominent player because of the hot sales of its ace products—the fourth-generation Olay White Radiance and Olay Cellscience Repairing Essence Cream.

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In general, the market concentration of top brands has increased. CR5, CR10, and CR20 in October and November 2022 were 18.3%, 28.2%, and 39.5% respectively, an increase of 6.6%, 8.4%, and 9.6% over the same period last year.

Douyin

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In September and October 2022, Chinese beauty brands have a stronger momentum than international brands on Douyin. In the skincare sector, Chinese brands played a dominating role with Proya ranking first, hotly pursued by international brands. In September 2022, international brands occupied 6 places in the Top 20 list, with L'Oréal, Estée Lauder, and SK-II ranking second, fourth and fifth respectively. In October 2022, international brands occupied 7 places, with Estée Lauder and L'Oréal ranking second and fourth. In the Double 11 Shopping Festival of 2022, international brands leveraged Douyin to seek new growth and outperformed Chinese brands. The Korean skincare brand WHOO ranked the first place in the skincare segment, followed by Estée Lauder and L'Oréal.

The makeup sector is dominated by Chinese brands. Florasis remained its first place throughout the previous 11 months in 2022. The emerging makeup brand TIMAGE under the Proya group also stood out remarkably in the Top 20 list.


Rita Bao
ChemLinked Market Research Analyst
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