This forecast is presented by CBNData x Tmall Global.
PART 01 Under the enthusiasm of overseas online purchase, cross border e-commerce has become the major consuming window
The cross border import e-commerce has been developing steadily with more than 0.2 billion Chinese cross border consumption users in 2020. Along with the favourable policy coming out, the market is predicted to grow considerably.
The development of cross border e-commerce is having its day, among it the GMV of Tmall Global has been at the front rank for 5 years running and remains the continuing growth. The total consumption scale of Tmall Global keeps enlarging. A diversity of categories such as beauty makeup&skincare, personal care&household cleaning, clothing, health care, mother and baby jointly drive the growth of Tmall Global.
PART 02 consumption trend of 3 industries on Tmall Global
Trend 1: precise skincare
With many skin problems, consumers now attach great importance to the healthy condition of their skin
According to 2021 National Health Survey by DXY.cn, poor skin condition ranks the second in national health problems. 81% of consumers said they would pay more attention to their own skin health under a variety of skin problems, such as dark / sallow complexion, large pores, oily skin, dry skin and so on.
Advanced efficacies are getting increasing attention, and functional skincare products are becoming the trend
Facing skin healthy problems, consumers increasingly wish to solve many skin problems in a targeted and efficient manner. Basic skincare on longer meets the skincare demands of consumers while they focus more on advanced efficacies such as whitening&brightening, pore refining, tightening and anti-aging, antioxidant. Functional skincare products with advanced efficacies are becoming the trend and the total market scale keeps going up.
Functional skincare demands also grow in cross border consumption and related categories have rocketed
Face serum as representative category among functional skincare categories, the penetration rate of which in overall beauty makeup&skincare market of Tmall Global is going up all the time. A representative functional skincare brand has also exploded by more than 2 times in the past 2 years on Tmall Global, meaning functional skincare products are much favoured by cross border consumers.
Multiple components each has its own strengths which contribute to the products efficacies to achieve precise skincare
The advanced efficacies can’t be achieved without the components. With precise skincare demands, over 60% of consumers are also highly focused on the components of skin care products. Functional components such as 377, tranexamic acid with spot lighting and whitening efficacy, retinol, bosin with anti-aging efficacy, salicylic acid, fruit acid with acne removing efficacy, and vitamin C, vitamin E with antioxidant efficacy are getting consumers’ attention.
“Pro-component group” have enhanced their recognition and knowledge, significantly focus on the scientificity of composition ratio
“Pro-component group” no longer not only care about whether a certain component is included in skincare products, but focus more on the reasonableness and scientificity of components. 73% of consumers would focus on composition ratio and component formula while more than 40% of consumers would be concerned about the manufacturing techniques and relevant research background of components.
Trend 2: Use oil in body care
Personal care updates, hair wash, hair care and body care products pay more attention to skincare efficacies
Personal care category shows an updating trend. Hair care steps are increasingly subdivided in hair wash and hair care. People are no longer satisfied with wash and care steps of shampoo plus hair conditioner, the demand of scalp care and hair care essential oil is increasing rapidly. In aspect of body care, the product form has advanced from basic shower gel, body lotion to shower oil, scrub cream, the diversified body care products.
Use oil in body care has become the trend, efficacy is the very important factor in consumers’ purchase decision
Oil care products of Tmall Global have grown very fast and oil care has become the trend.
According to a survey, consumers using hair care essential oil take up more than 80% in consumers having oil care habits, and body essential oil users account for over a half. Efficacy has become people’s most significant decision factor when choosing oil care products.
Moisturizing and repairing are the main oil hair care efficacies, hair growth and anti-hair loss has become the hair problem for both older and younger generation
As for oil hair care products, moisturizing, preventing dryness and repairing damage are the main efficacies of most concern at present. From different age groups, older generation, the user group of the pre-70s and post-70s and younger generation, the user group of the post-90s and post-95s both prefer hair growth and anti-hair loss. “Guard hairline” has become the same problem for different age groups.
The efficacy of oil body care diversifies, different age groups have different demands
As for oil body care, moisturizing, preventing dryness are the main efficacies. Besides oil body care has extended to soothing nerves, cleansing and exfoliating. As for different age groups, the post-90s and post-95s focus on skin problems like “chicken skin”, the pre-70s and post-70s focus more on soothing nerves, moisturizing, preventing dryness.
Trend 3: Mood Fragrance
The sense of smell Economy rises, the consumption scale of fragrance market keeps going up
Based on 2021 China Fragrance Industry Research White Paper, The market of Chinese fragrance and aromatherapy is speeding up with large developing potential, the compound growth rate of which is predicted to reach 22% in 6 years. The proportion of fragrance in beauty makeup market and that of aromatherapy in personal care market has increased year by year.
Showing personal taste and style is the major reason when making purchase decision, the younger generation pursues emotion healing
As the post-90s and 95s are playing important social roles, anxiety and sleeping problems caused by high pressure work are increasingly evident. The use of fragrance can help them ease the nerves and sleep soundly.
Small salon perfume becomes the mainstream, different generations have different preferences
Unlike the popular perfume that can be smelt almost everywhere, unique small salon perfume showing personality has been favoured by the post-90s and 95s. The post-80s more favour destination fragrance, recording different memories of each country by the fragrance notes. The pre-80s are more fond of the featured fragrance notes of well-known brands.
Flower fragrance, fruit fragrance and oriental fragrance are the mainstream fragrances, the post-95s are glad to try new types of fragrance
More than 40% of consumers favour flower fragrance, fruit fragrance, and oriental fragrance with oriental characteristics are also favoured by nearly 40% of consumers. The post-95s are glad to try new types of fragrance, preferring small food fragrance and wood fragrance.
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