What is the marketing situation of China s beauty and daily chemical industry?

Mondo Finance Updated on 2024-01-29

Industry TrendsFrom January to August 2023, the online advertising of the beauty and daily chemical home cleaning industries** was under pressure, with an investment index of 38600 million, a year-on-year increase of -98%, of which the beauty and skin care categories and personal bathroom categories were not as good as the same period last year, but the household cleaning category bucked the trend**121%, and the investment index reached 6500 million. **Roll advertising is still the most preferred advertising form for brands in the industry** and advertising, and the brand's advertising budget is mostly concentrated in key periods such as festivals and e-commerce promotions, so as to promote product sales as the ultimate advertising effectThe OTT side has become a popular terminal, accounting for 405%。In terms of the launch strategy of the three major sub-industries of beauty and daily chemical home cleaning, beauty and skin care & personal bathroom & household cleaning, beauty and skin care brands have deployed content marketing on Xiaohongshu, and mainly invested in full-screen advertising to strengthen the effect of celebrity endorsements and highlight e-commerce preferential informationThe personal bathroom and household cleaning industries prefer **patch advertising, and increase the volume by implanting ** popular dramas and popular variety shows on the ** platform. Brands in the industry focus on consumption scenarios, actively participate in e-commerce activities, deepen cooperation with online and offline supermarkets, and drive further conversion of sales. Typical brands in the industry - taking the foreign beauty and skin care brand SK-II and the old domestic bee flower of personal bathroom as examples, the foreign brand SK-1L will increase advertising at important nodes such as women's festivals and e-commerce promotions in 2023, and deeply cultivate traditional e-commerce + Douyin self-broadcasting and bringing goods. The specific strategies are: Lock in the needs of the "medium and high consumption light mature women" customer group, highlight the efficacy of housekeeping ingredients, and use single product + limited gift box to promote products;Celebrity endorsement, cross-border co-branding, title placement and other ways to play, traditional + new, omni-channel marketing and diversion to the purchase platform;·*Jingdong and Douyin brand official live broadcast room high-frequency self-broadcast + live broadcast of the anchor with goods to realize the integration of quality and efficiency of its network marketing. The advertising budget of the old domestic brand Bee Flower is relatively insufficient, but it actively uses hot events and topics for marketing, relying on the "domestic product boom" to obtain sales peaks. With the help of current hot events, actively interact with consumers on platforms such as short **, enhance emotional resonance, and create brand personality;Hot event topics are fermented and diverted to its Douyin live broadcast room, and other domestic brands are linked to carry out "domestic product team building", with the help of consumers' domestic feelings to complete the brand breakthrough, the creation of "wild consumption" boom and the excess of sales targets.

According toAnalysis of the Business Model and Development Prospect Report of China's New Beauty Retail Industry from 2023 to 2028:

From January to August 2023, the online advertising of the beauty and daily chemical home cleaning industries is still decreasing, only 74% of the same period in 20211%, and the input index is 38600 million, a year-on-year increase of -98%, which is lower than the overall average of all industries;Among them, the launch of beauty and skin care and personal bathroom brands decreased respectively. 8% is the main influencing factor.

From the perspective of the launch schedule, the advertising budgets of the brands in the three major sub-industries of beauty and daily chemical home cleaning are mostly concentrated in the key periods of e-commerce promotions such as 38 festivals, 618 and double 11, among which the online penetration rate of brands in the beauty and skin care sub-industry is relatively high, and the investment index fluctuates significantly with the time of key activities such as e-commerce ** shopping festivals.

The concentration of advertiser investment index in the beauty and daily chemical home cleaning industry is relatively high, and the top 4 advertiser investment index accounts for 75 percent of the industry as a whole2%, but in 2023, only Unilever will increase its brand advertising, and Procter & Gamble, L'Oreal Group and Estee Lauder will decline year-on-year. 8%。The share of the investment index of the three major sub-sectors fluctuated steadily, among which beauty and skin care accounted for the highest proportion, accounting for about 46% of the overall online advertising investment in the beauty and daily chemical and household cleaning industries9%, the proportion of personal bathrooms continued to decline slightly.

From the perspective of online advertising strategy, advertisers in the beauty and daily chemical home cleaning industries are still more inclined to place on the mobile terminal, and the investment index has declined but still accounts for nearly half of the total, in addition, the OTT terminal has become a popular terminal from January to August this year, accounting for 405%。*In-roll advertising is the most important form of advertising, accounting for 622%, followed by full-screen ads;The proportion of in-feed ads will increase to 6 in 20235%。

Beauty and daily chemical home cleaning industry 626% of online advertising investment is concentrated in ***portal**, IT**, etc., which is also an important advertising **. In terms of the number of advertisers, Tencent and Xiaohongshu are the top 2 platforms for advertisers in the industry, and Sina Weibo and iQiyi rank third to fifth.

Affected by macro factors such as the economy and consumption environment, advertisers in the industry are cautious. Only three of the first eight months of 2023 saw positive year-on-year growth in the investment index, and as of the end of August, the investment scale of beauty and personal care brands in 2023 was -10 year-on-year7%。

In 2023, the top 15 brands will significantly reduce their advertising as a whole, and the sum of the advertising index from January to August will be 1296 million, a decrease of 13 compared with 20220%, of which the investment index of the top 2 brands Estee Lauder and Lancôme in 2022 will decrease significantly, with a year-on-year increase of -494%、-31.0%;However, the investment index of shoulder and waist brands such as Helena, SK-II, and Olay has increased compared with the same period in 2022. In the advertising investment index ranking, four brands, Vaseline, Mike, L'Occitane and Clarins, jumped into the TOP15 list, among which Vaseline's ranking has increased significantly from 53rd last year to 9th this year, with a significant increase in advertising investment.

Among all seven sub-product categories, the online advertising of three types of products has increased year-on-year, of which the perfume investment index from January to August 2023 is 910 million, an increase of 588%;In the sub-category, the TOP1 category, which accounts for more than 70% of the beauty and skin care industry, has a decrease of 139%。

Beauty and skincare brand advertisers have increased their targeting on OTT, but mobile still accounts for 68% of the total5% share;Full-screen ads and in-roll ads are still the main forms of advertising, but compared with 2022, the proportion of online ads has increased by 56%, the investment index increased by 82 year-on-year6%, the increase is more significant.

It is still the first choice for beauty and skin care advertisers, with an investment index accounting for 597%, portal**, Weibo**, etc. are also the key types of advertisers. In terms of the number of advertisers, Xiaohongshu and Tencent are the top 2 ** platforms where advertisers concentrate on advertising, among which the grass sharing attribute of the Xiaohongshu platform has attracted more advertisers in the beauty and skin care industry.

Use the celebrity spokesperson's own fan volume and influence to increase the attention and discussion of brands and products;Associating a good image of the spokesperson with the brand or product enhances consumer trust and promotes purchase. In the advertisements in cooperation with e-commerce platforms, the focus is on preferential information such as 0 yuan trial, low price, discount, large coupons, and buy gifts to attract consumers to place orders and purchases.

In 2022, affected by complex factors, the online advertising of the personal bathroom industry will decline significantly throughout the year, with a year-on-year increase of -263%, in Q1 2023, the industry's advertising confidence is still insufficient, and the advertiser investment index continues to decline sharply year-on-year, with a slight improvement in decline from May and a significant monthly increase;However, looking at the first eight months of 2023 as a whole, the investment index is still negative year-on-year, and it will take time for advertisers' confidence in the industry to fully recover.

From January to August 2023, the sum of the top 15 brand placement indices is 1126 million, accounting for 87 of the overall personal bathroom industry4%, and the input index decreased by 13 compared with 20227%, but the investment index of the top 3 brands, Lux, Qingyang and Dove grew against the trend, among which the new Lux rose by 162 year-on-year3%;However, among the brands ranked 3-7, only Sophie increased advertising, and the online advertising index of the remaining six industries all fell by double digits year-on-year.

Among all four sub-product categories, the investment index of bath products from January to August 2023 is 290 million, a positive year-on-year growth;The other three categories of shampoo, hair care products, toothbrush, toothpaste, and sanitary napkins all decreased compared with the same period in 2022, respectively -182%、-18.2%、-39.1%。

In 2023, the online advertising of personal bathroom brand advertisers on the OTT side will increase significantly, and the share of the OTT side will increase by 126% to 553%;*In-roll advertising is still the most important form of advertising, accounting for nearly 90% of the placement. AI assistant creation season

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