Rise of Value-for-Money Brands in China’s Thriving $40 Billion Skincare Market: A Shift from Luxury Icons to Local Names

China's skincare industry, worth $40 billion, is flourishing as customers opt for budget-friendly brands. Domestic brands are leading the skincare market in China as shoppers transition from luxury labels to more affordable options.

In May of last year, Stephanie Sam, a specialist in media communications, splurged 4,000 yuan (equivalent to US$562) on skincare products, influenced by online promotions. Typically, she dedicates a minimum of 1,000 yuan to premium skincare purchases, placing greater emphasis on this aspect of beauty than on others such as cosmetics or hair products.

"She stated that her collection is quite comprehensive, featuring everything from retinol and vitamin C serums to hyaluronic acids and sunblock lotions. She appreciates that these products are backed by scientific studies and are available at moderate prices, so she doesn't feel as if she's draining her finances."

Makeup producers are elevating their strategies as customers in China become more advanced and judicious in terms of quality. This is a movement that they cannot overlook; the skincare product market, currently valued at US$40 billion, is predicted to increase to US$44 billion by the year 2027, as per the studies conducted by Euromonitor International.

Online trading currently accounts for over 40% of the market, a figure expected to rise to 60% by 2027, as per the predictions of BDA Partners.

Betty Kim-English, the deputy general manager of global marketing for the skincare brand Drunk Elephant, stated that Chinese customers are well-informed and sensible. She pointed out their sophistication and their search for top-quality, superior skincare products.