China's local brands accounted for 98% of the domestic market in 2017, with a 7.7% increase in sales value. 67% of local insurgents grew at least two times faster than their category average. These local insurgents typically sell their products for above-average prices.
22% of makeup brands in 2013 were no longer in the market or had a negligible market presence four years later. Roughly 80% of growth in sales value resulted from volume growth and 20% from price growth.
Most local insurgents are small -- about half of them have urban revenues in the 100 million yuan to 500 million yuan range. However, 67% of them grew at least two times faster than their category average. They either target “premium” consumers (those who tend to value quality over price) or the “good-enough” segment (where both price and quality matter). As such, these local insurgents typically sell their products for above-average prices.
Moreover, while these brands only represent roughly 6% m...
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