China can’t buy enough beauty gadgets
Key points to remember:
The most demanded hi-tech facial tools deliver a spa-like experience from the comfort of your home.
Swedish skincare brand FOREO is one of the biggest success stories in China, with record sales for Singles Day.
The global personal care device market will reach $ 25.9 billion by 2026.
Traditionally, the beauty segment has always been the top performer for luxury brands. Lipstick, in particular, has worked very well during times of recession. In fact, after analyzing this trend, Leonard Lauder, President of Estée Lauder, coined the term “the lipstick effect”.
Euromonitor International recently highlighted how various beauty entry categories like “nail polish” and “lipstick” have come to represent the “affordable luxury” segment. It’s hardly surprising given that not everyone can afford a Kelly or Birkin bag, but most of us can splurge on a $ 67 Rouge Hermès lipstick. But, at first glance, it appears that this trend has reversed during the COVID-19 pandemic.
For obvious reasons, lipstick sales have plummeted in the age of wearing masks. “Lipstick gets dirty on a mask, which I have to wear all the time during the pandemic. As a result, I rarely put on as much lipstick as I used to, ”Yang Yang, 30, told World times.
The pandemic has dealt a serious blow to lipstick sales, but that doesn’t mean the beauty industry isn’t finding innovative ways to stay afloat. Countries like South Korea (with its elaborate 10-step routines for pore-free porcelain skin), Japan and China are all ahead of the game.
Flawless, clean skin isn’t a recent obsession in China, as beauty brands have been offering products that promise an aging-resistant complexion for decades. But younger, digitally savvy Chinese consumers are no longer happy with typical beauty regimes and demand smart skin care solutions that match their futuristic age.
Technological metamorphoses are already the norm in China. Take for example, X Smart Store from SK-II in Shanghai, which offers a personalized skin diagnosis. MAC, Meitu and Alibaba already use in-store smart mirrors, which allow users to try out virtual makeup and offer personalized makeup solutions. But these massive investments in disruptive technologies have had to be forgotten in the era of containment.
As consumers spend more time at home, brands have had to adapt to a new reality. Beauty gadgets now have to meet new needs, such as quarantine self-care and DIY beauty routines. At this time, the most demanded high-tech facial tools are expected to deliver a spa-like experience from the comfort of one’s home.
According to Kline & Company, sales in the Chinese home beauty device market increased by 71% in 2017. Meanwhile, the Fashion business reports that in the same year, half of the top ten best-selling digital devices were home beauty tools during Alibaba’s 11/11 Singles’ Day.
Alibaba’s competitive advantage is that it understands the power of demographic and behavioral segmentation, so that it delivers the right product to the right customer at the right time. To give an example, consumers in the 35-45 age group are the most spenders for the more expensive beauty products. As such, Alibaba offers them high-end personal beauty equipment. This customer-centric strategy improves satisfaction and retention.
Not surprisingly, sales of Alibaba’s beauty gadgets have skyrocketed. Smart beauty devices have seen trading volume, Tmall says double annually for three consecutive years. “We have seen beauty brands swarm to follow the trend of using big data analytics, artificial intelligence and facial recognition to recommend and personalize beauty products for consumers,” said Chen Lijuan, director of the laboratory. AI from Alibaba.
Evidence of this trend, Swedish skincare brand FOREO is now one of the biggest success stories in China, reporting sales record for Singles Day. Its smart silicone facial cleansing device, FOREA LUNA, broke records in 2017 when it sold more than $ 15 million worth of product in 24 hours. In fact, FOREO has claimed the first position in beauty device category in China with more than 100 million RMB in sales via its 11/11 Tmall Singles’ Day promotion in 2017. Since then, the beauty device has remained in pole position in China, breaking records every year.
FOREO’s marketing strategy for China has had a substantial impact on the company’s sales. Most recently, the brand participated in the China International Consumer Products Expo in Hainan, where the Ministry of Commerce of the People’s Republic of China and the Hainan Provincial Government hosted a product launch event. per 1000 VIP guests.
During the event, FOREO launched a limited edition Luna device, featuring the image of Yuanxiao, the mascot of the consumer show. The facial cleansing device was presented to the public by top live streamer Viya, and 17.7 million people watched the show.
Meanwhile, Meitu image editing software has also entered the smart gadget market, finding success with MeituSpa, an AI cleansing brush that offers information about the user’s skin health.
Additionally, L’Oréal has developed its own AI-powered home skin care gadget that uses real-time data to create personalized skin care solutions for customers. L’Oréal personal is expected to compete with Shiseido for a higher market share.
Other innovative entries that are quickly winning the hearts of Chinese consumers are the refreshing massage stick for face and eyes, the vibrating roller for face lifting and the Face lift pillow from WellDerma.
In 2020, the global personal care devices market was estimated at $ 19.7 billion and is expected to reach $ 25.9 billion by 2026, with a CAGR of 4.7% over the period. Estimates indicate that China will reach a projected market size of $ 2.8 billion by 2026, with a CAGR of 6% over the same period.
Obviously, the market for beauty gadgets is advancing at an unprecedented speed. Beauty companies should invest in AI or AR-based solutions that provide customers with more convenience and personalized recommendations. And these cutting-edge technologies are even more in demand in the luxury beauty segment, where consumers prefer more choice and highly personalized products.