Emerging Consumer Trends and Market Dynamics
China's beauty industry is undergoing rapid transformation, fueled by an increasing number of middle-class consumers. In light of advancing technology and evolving consumer expectations, brands are developing products that cater to personalized and research-supported "wellness" trends. The sales growth of major brands such as L'Oréal and Shiseido indicates a rising consumer interest in skin health. Additionally, products for post-light medical aesthetic care are gaining significant popularity.
This transformation is supported by a strategy aimed at reaching consumers in cities from Tier 3 to Tier 5. New-generation consumers, especially those with middle to low income levels, are driving high sales volumes, particularly during special shopping days like "Singles' Day." Brands like Herborist are also fostering loyalty through exclusive membership programs and spa experiences tailored to this new consumer base.
Lastly, the rise of 'dazi' culture and AI assistants is leaving a significant impact on social relationships and consumption habits in China. These trends necessitate that brands adopt more interactive and technology-focused marketing strategies. Products that incorporate AI-driven personalization and wellness elements are opening new doors for brands to compete in this dynamic and complex market.
*Dazi culture meets the need for temporary social interactions in China that require minimal emotional investment. Initially used in online gaming, the term now broadly defines superficial and pragmatic social connections.