Sales within the Chinese beauty retailers market experienced strong growth in 2012, with the industry amounting to a value of RMB813 billion.
Current value growth for beauty retailers was slightly lower than that in 2011, mostly due to the gloomy global economic outlook, as well as the slowing-down of China's economy.
However, leading players in this category continued with their expansion plans in 2012, preparing for the possible overall economic recovery in the near future.
Watsons Group consolidated its leadership in the China health retailers market in 2012, with the largest share gain among all players, to just under 2%. The company has a consistent expansion plan, making efforts to penetrate into lower-tier cities.
Watsons enriched its product portfolio over the last few years and developed new products in its private label lines to meet consumers' changing needs. Constant in-store promotions and various marketing campaigns have enhanced its brand awareness among consumers.
A fresh new group of online retailers is giving China's beauty market a makeover, leaving global beauty brands like Avon and Sephora in need of a touch-up.
Online retailers are quickly gaining ground in China by selling a wide range of brands at big discounts. Jumei.com gives discounts up to 15% on about 45 different high-end cosmetic labels like Dior and Lancôme.
Sales of beauty products, including cosmetics and shampoo, from China's physical retail stores dropped to 74% in 2011 from 83% in 2010, while sales on the Web increased to 9% in 2011 from 4% in 2010.
For more information on the Chinese beauty retailers market, see the latest research: Chinese Beauty Retailers Market
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