Hong Kong media: China's cosmetics market is quickly getting rid of the impact of the epidemic

Original title: Hong Kong media report: China's cosmetics market is quickly getting rid of the impact of the epidemic

　　Reference News reported on April 8 that Hong Kong’s South China Morning Post website published a report on April 7 entitled "China’s cosmetic sales rebounded in March, and the new crown virus epidemic proved to be a temporary setback." According to the report, after China loosened the lockdown measures implemented to control the new crown pneumonia epidemic, people resumed work, retailers also focused on online sales, and cosmetics sales in China are recovering rapidly. The content is compiled as follows:

　　 Jefferies Investment Bank analyst Anne Lin said in a report on Monday local time that compared with all other retail categories in China, cosmetics sales in March were better, down about 20%. She also said that compared with February, this is a huge improvement. Due to social restrictions and reduced demand for cosmetics, sales in February fell by 60% to 80%.

　　 In some cases, some cosmetics companies' sales in February increased by 120% year-on-year, while sales plummeted by more than 90% during the previous Spring Festival. The Spring Festival is the traditional peak season for sales.

　　 The founder of a cosmetics brand headquartered in Shanghai with hundreds of stores across China said recently that he was about to go bankrupt after sales plummeted in January. As physical store sales have shrunk by nearly 90%, he switched to selling products online and promoting them on live broadcast platforms and social media.

　　 The brand founder said that he sold 400,000 bottles of the company’s flagship product, Camellia Moisturizing Oil, within two hours on Valentine’s Day. During the Women's Day shopping season from March 1 to March 8, its online sales soared more than four times.

　　 According to the company, the sales of facial masks and makeup remover on an e-commerce platform in March increased more than 4 times compared with February.

In response to inquiries, the e-commerce platform said, "The sales of lipsticks, eye shadows, eyebrow pencils and other cosmetic products have also increased well. However, the transaction volume seems to be at a (relatively low level)", and pointed out the sales of mid-range products. This is an increase compared to a year ago.

According to Shanghai-based e-commerce data provider Dawei, during the Women's Day promotion in the first week of March, the sales of cosmetics and skin care products on Chinese e-commerce giant Tmall increased by 89.5%, surpassing all other categories . Sales of household products ranked second, with an increase of 56%, followed by food and health products, with an increase of 46%, thanks to the increase in demand for essential products during the long-term isolation period.

　　 Roland Berger Consulting analyst Chen Ke said that the impact of the new crown virus on cosmetics sales will be short-lived. He also said that sales will increase because the per capita consumption of cosmetics in China in 2019 is US$30, which is much lower than Japan’s US$202 and the US’s US$120.

According to Euromonitor International Consulting, China's beauty and personal care market reached about 470 billion yuan in 2019, with a compound growth rate of 9% in the past five years.

　　 In addition, data shows that China's search for cosmetics and personal care bottomed out on approximately January 30, and rebounded to the level before the outbreak on February 10.