With the theme of "Laying a Solid Foundation and Insight into the Future", the Future Marketing Beauty & Personal Care Brand Digital Ecosystem Conference was held in Shanghai to discuss the new consumption breakthrough of retail brands such as fashion and beauty and personal care from the perspective of digital + AI technology empowering brands and business growth. As the world's leading consumer research and retail measurement company, NielsenIQ (NIQ) was named the 2024 Future Marketing Award for Outstanding Data Mining and Analytics Service Provider of the Year for its extensive omnichannel coverage and professional insights into the beauty and personal care industry.
Initiated by Future Marketing and the Future LINK Organizing Committee, the award is an industry-wide annual digital innovation selection, focusing on digital innovation and digital intelligence growth in brand, technology, product, marketing and other dimensions. Founded in 1923, NIQ has a global network of more than 100 countries and territories, providing customers with one-stop solutions covering retail monitoring, consumer insights, product innovation and analytical consulting, as well as delivering a complete picture of the market through full-category monitoring, omni-channel coverage and cross-industry insights for FMCG and technology durables.
Shanshan Hu, Chief Business Development Officer, NielsenIQ China, said, "We would like to thank Future Marketing for recognizing NIQ's outstanding capabilities in data mining and analytics services. With the gradual recovery of consumers' shopping and usage scenarios, the beauty and personal care market will usher in more innovations and breakthroughs this year. NIQ has a deep insight into the development trend of China's skincare retail market, reveals the layout characteristics of different sales channels through omni-channel monitoring, and effectively identifies growth points through detailed analysis of the market performance of each category. Since merging with GfK last year, we have further expanded our channel monitoring coverage to cover modern channels, 51 city counters, cosmetics stores, traditional e-commerce and emerging channels such as Douyin, providing a complete and clear insight into consumer action. At the same time, with NIQ's 100 years of experience and methodology in the FMCG field, combined with industry experts in the beauty and personal care industry, we provide valuable insights to help customers grasp the pulse of the market and achieve business growth. ”
The beauty and personal care industry has ushered in an omni-channel revolution
During the conference, Hu Shanshan also delivered a keynote speech on "Beauty & Personal Care Outlook: New Omni-channel Trends", which comprehensively demonstrated the new omni-channel trend of beauty & personal care from the macro level, omni-channel perspective to refined operation.
NielsenIQ data shows that the size of the skincare retail market is steadily recovering, and the increase in online channels is prominent. In the first quarter of 2024, omnichannel sales grew by 5.7% year-on-year, of which online channels grew by 13% and offline channels grew by -7.3%. In the skincare retail channel pattern, Douyin, as a fast-growing emerging e-commerce channel, will grow by 56.6% in 2023, and its sales share will increase from 18.9% to 27.3%, further highlighting its channel importance. Among the offline channels, the recovery performance of department store counters is particularly impressive, with a year-on-year growth rate of 3.8% in 2023.
From the perspective of brands, the skincare market in 2023 shows a clear polarization trend: on the one hand, there is an ultra-high-end market with an average price of more than 700 yuan, and on the other hand, there are economic brands with an average price of less than 200 yuan, both of which are showing a leading trend. Entering the first quarter of 2024, NIQ data shows that the market share of ultra-high-end brands in the counter channel has further expanded, and an important driving factor is the expansion of the share of creams above 2,000 yuan.
In addition, the offline format is undergoing a profound reshuffle and reshaping, in which near-field and differentiated layout have become key factors. Taking instant retail as an example, it effectively connects online and offline stores, injecting new vitality into offline stores. In the home care and personal care FMCG segments, just-in-time retail accounted for 6% and 11% of modern channels, respectively, demonstrating the growth potential of the O2O model in meeting immediate demand. In particular, paper products (toilet paper and facial tissue) have become increasingly important in O2O, and their performance is better than that of omni-channel, becoming a key category worth paying attention to.
In the face of Chinese consumers' cautious and savvy consumption outlook, as well as their dual focus on health and value, which includes not only the quality-price ratio of products, but also the emotional value, Hu Shanshan suggested that brands should respond to this in two ways:
First, value buying: brands should strengthen communication with consumers, convey the scarcity of products, emphasize product function upgrades and pursue better consumer experience. This can be achieved through limited-edition products, high-end features, or a unique user experience to entice consumers to be willing to pay a higher price for high quality.
The second is price purchasing: brands should provide cost-effective products, and lock in the specific needs of consumers through attribute optimization, adaptation to the needs of different sales channels, and accurate product specifications. For example, offering large packages to reduce unit costs, developing competitively affordable products, or meeting consumer expectations through precise market positioning.
At the same time, she said that the secret of corporate growth lies in precisely positioning its market strategy and maximizing revenue through value and price buying. At the same time, enterprises need to consolidate their offline foundation and build their future competitive advantages with an omni-channel layout. This includes strengthening penetration in near-field channels, improving the efficiency of large formats, and adjusting and maintaining scale through the addition of channel layout and the subtraction of product matching. In addition, by effectively integrating online and offline (O2O) strategies, companies are able to compete with online channel competition and find new growth points through content e-commerce.
About NIQ:
NIQ is the world's leading consumer research and retail measurement company, providing the most comprehensive insights into consumer behavior and revealing new avenues for growth. In 2023, NIQ and GfK will merge to bring together two globally influential industry leaders. NIQ delivers the full view ™ of the market through a comprehensive retail interpretation and consumer insights, a superior business intelligence platform and analytical tools.
NIQ is part of Advent International's portfolio companies, with operations in more than 100 markets and more than 90% of the world's population.