Lipstick Economy: China's color cosmetics market sees booming growth
Today we bring you the third installment of our 'Spending Smart' series. In this episode, we'll explore China's quickly-diversifying lipstick economy. The compact cosmetic essential is often seen as bellwether for market dynamics, and in China it's seeing a booming revival. CGTN's Mark Fontes explains.
If there's one thing that even a tenuous economy can't shake, it's consumer spending on beauty products. The so-called 'lipstick effect' was first identified by market-watchers in the United States, who observed that in the face of dire economic prospects, consumers will opt for cheaper cosmetic products over more expensive luxury goods. China may be experiencing continued economic growth, but that's not stopping shoppers there from buying up lipstick in droves.
LAURA CHU, ACCOUNT DIRECTOR, BEAUTY SECTOR KANTAR WORLDPANEL "Lipstick is growing very very well in China right now. And it's mainly driven by the young consumers. But is not because economy is slowing down whatever. Actually, they are looking for self-identity through lipstick products. And they have the strong needs to express themselves socially, on the social platforms. And at the same time, I would say it serves as a weapon for the young females when they go to workplaces and when they need to be in some occasions."
Consumers today are more sophisticated than ever in applying makeup -- Crafting modern looks with multiple layers and shades, rather than a few simple accents. When it comes to the lipstick market in particular, a whole kaleidescope of colors is making an appearance on the mouths of China's women.
MS. ZHANG, BEAUTY CONSULTANT YVES SAINT LAURENT "We're seeing a real boost in the sales volume of lipstick, along with the promotion of the products. Nowadays young women and students are the main target audience for the lipstick market. When choosing color cosmetic products, the power of Key Opinion Leaders, like beauty bloggers and internet celebrities, can't be ignored. Also, pop-up stores are helping to offer those consumers a greater choice."
Increasing urbanization, improved living standards and the trend of posting photos on social media are just a few of the key factors driving the growth in the cosmetic products market. And lifestyle products like lipstick, which are affordable to individuals at every section of society are quickly becoming ubiquitous on the streets of China's cities. Mark Fontes, CGTN, Beijing.