{"id":2485,"date":"2019-08-29T10:43:30","date_gmt":"2019-08-29T02:43:30","guid":{"rendered":"https:\/\/daxueconsulting.com\/?p=2485"},"modified":"2021-11-18T11:09:41","modified_gmt":"2021-11-18T03:09:41","slug":"shampoo-market-in-china","status":"publish","type":"post","link":"https:\/\/daxueconsulting.com\/shampoo-market-in-china\/","title":{"rendered":"The shampoo market in China: trends and opportunities for new entrants | Daxue Consulting"},"content":{"rendered":"\n

The prospects of the shampoo\nmarket in China are booming<\/h2>\n\n\n\n

Shampoo, as a daily consumer product, has one of the highest penetration rates of personal care products in China. Most Chinese people wash their hair every 2-3 days and buy a shampoo and hair-care products every few months. The size of the shampoo market in China<\/strong> is 30 million RMB and the hair-care market in China is 20 million RMB. According Statista<\/a>, revenue in the hair-care market in China amounts to US$8034.4m in 2019. The shampoo market in China is expected to continue to grow annually by 4.3% (CAGR 2019-2023).<\/p>\n\n\n\n

\"Hair-care
[Source: Statista, \u201cRevenue of Hair-care market in China\u201d]<\/figcaption><\/figure><\/div>\n\n\n\n

As can be\nseen from the graph, the hair-care\nmarket in China maintains a steady growth trend.<\/p>\n\n\n\n

Market segmentation of China\u2019s shampoo market: Main players & products<\/h2>\n\n\n\n

Nowadays, the\nmarket competition of shampoo\nand hair-care products in China is extremely\nfierce. There are around 4000 brands and more than 2000 manufacturers engaging\nin the production of shampoo\nand hair-care products in China. Among all these brands, the brands P&G<\/a> and Unilever take a market share of\nabout 75%<\/a>, both players entered China in the \u201980s and \u201990s. <\/p>\n\n\n\n

P&G<\/h3>\n\n\n\n
\"P&G
[Source: pg.com \u201cbrands of P&G in China\u201d]\t<\/figcaption><\/figure><\/div>\n\n\n\n

Procter & Gamble<\/a> (P&G) owns star brands such as Head\n& Shoulders<\/a>, Rejoice<\/a>, OLAY<\/a>, etc. It is one of the largest\nconsumer goods companies around the world. P&G in China was the first to crack the Chinese shampoo market,\nand it has remained in the Chinese\nshampoo market for 30 years. P&G has occupied large-scale, low-cost\nchannels to meet the needs of most consumers and\nbecome one of the most recognized global brands in China. <\/p>\n\n\n\n

\nIn terms of its shampoo\nproducts, Head & Shoulders (\u6d77\u98de\u4e1d)<\/a> is \u2018the world\u2019s number one shampoo\u2019. It is a brand famous for its anti-dandruff\nshampoo for being the best-seller in China over the past decade. Other shampoo\nbrands that belong to P&G including Rejoice<\/a> for soft hair; Pantene\n<\/a>for healthy and\nshinning hair; VS Sassoon<\/a> for moisturizing; and Clairol for\nnatural-looking hair. \n\n<\/p>\n\n\n\n

\"shampoo
[Source: Head & Shoulders \u201canti-dandruff shampoo in China\u201d]<\/figcaption><\/figure><\/div>\n\n\n\n

For six\nconsecutive years, P&G in\nChina has become the market leader in fast-moving\nconsumer goods industry. The reason is that the company launched a series of\nnew and complex shampoo products\nin China, while increasing the availability of products and using social\nmedia and e-commerce platforms.<\/p>\n\n\n\n\n\n

However, at\nthe beginning of 2019, P&G announced its second-quarter earnings for the\n2019 fiscal year. The financial report showed that P&G revenue in the\nsecond quarter was US$17.4 billion<\/a>, compared with US$17.395 billion in\nthe same period last year, which means that the growth was very low at 0.28%. In the first six months of\n2019, P&G revenue was $34.28 billion, compared with $34.48 billion in the\nsame period last year. P&G\u2019s growth seem\nto be almost stagnant.<\/p>\n\n\n\n

P&G in China,\nto some extent, was caught in the problem of brand popularity and aging. However,\nits market share in the shampoo market in China\nis still unmatched by other brands. In order to\ncope with the aging of brands, it began to reduce the brand matrix in 2016 focusing on high-end. In terms of marketing, P&G in China has\nincreased advertising investment in various channels to enhance brand exposure.<\/p>\n\n\n\n

Unilever<\/h3>\n\n\n\n
\"Unilever
[Source: Unilever in China, \u201cBrands of Unilever in China\u201d]<\/figcaption><\/figure><\/div>\n\n\n\n

According to\nUnilever, <\/p>\n\n\n\n

\u201cOn any given day, 2.5 billion people use Unilever products to feel good, look good and get more out of life \u2013 giving us a unique opportunity to build a brighter future.\u201d<\/em><\/p><\/blockquote>\n\n\n\n

Unilever<\/a>\nis a British-Dutch multinational consumer goods company. Unilever in China is one of\nthe biggest FMCG firms. Its products include foods, beverages, cleaning agents and personal care products. Lux<\/a> (\u529b\u58eb) is the most\nfamous brand of Unilever in\nChina. The range of products includes beauty soaps, shower gels, bath\nadditives, hair shampoos and\nconditioners. Today, Lux is the market leader in several countries including Pakistan, Brazil, India, Thailand and South Africa. Dove<\/a> (\u591a\u82ac) products are manufactured in Argentina, Australia,\nBrazil, Canada, Germany, India, Indonesia, Ireland, the Netherlands, Thailand,\nTurkey and the United States. Their\nproducts are sold in more than 35 countries and are\nmarketed towards both women and men. Sunsilk<\/a> (\u590f\u58eb\u83b2) is\nUnilever\u2019s leading hair care brand. Its\nshampoos and hair-care products are sold in 69 countries worldwide.<\/p>\n\n\n\n

Multi-functional shampoo\nand hair-care products in China<\/h2>\n\n\n\n

In the Chinese shampoo market,\nsales of anti-dandruff oil products accounted for the highest proportion of\nshampoo sales, followed by nourishing hydration products; sales of anti-hair loss\nproducts increased the fastest. With the increase of work and life pressure,\nthe problem of hair loss is a concern of consumers. In addition, more young Chinese women are dying their hair\nfrequently, which has led to a series of color enhancing product lines for shampoo and hair-care products in China.\nFor example, color vive shampoos that\nprotect the hair color and hair-care products for repairing permed hair. In\nthis regard, shampoos and hair-care products from L’Or\u00e9al<\/a> seem to be favored by young Chinese\nconsumers.<\/p>\n\n\n\n

\"Shampoos
[Source: Taobao, \u201cShampoos for dyed hair in China\u201d]<\/figcaption><\/figure><\/div>\n\n\n\n

From the\nconsumption structure of shampoo products, the proportion of sales of medium\nand high-end products continues to grow, and the younger generation of 23-28\nyears old are the main consumers. The\nyounger generation has higher requirements for the quality of the products and drives\nthe consumption upgrade of the shampoo market in China. In terms of brand selection, 45% of\nconsumers choose to buy familiar brands, 45% of consumers will try a new brand,\nand 10% of consumers do not have a fixed\nbrand. At the same time, Chinese consumers are\nmore influenced by word-of-mouth than brand\nmessage. <\/p>\n\n\n\n

In addition, up to\n70% of consumers will choose three shampoo brands to rotate, and consumers who choose to fix a single brand account for a\nrelatively low proportion, indicating that consumers in the Chinese shampoo market are\nnot loyal to shampoo brands, which gives opportunity\nto new market entrants. <\/p>\n\n\n\n

What are the opportunities for foreign companies in China\u2019s shampoo market?<\/h2>\n\n\n\n

Healthy concepts and exquisite packaging<\/h3>\n\n\n\n

In recent\nyears, silicon-free shampoo, which is not harmful to hair, has become the focus\nof many young consumers. Some consumers do their research on social platforms\nto find out whether the ingredients are healthy or not. Different consumers\nwill choose various functional shampoos, but overall, healthy shampoos with\nbeautiful packaging will be more popular with consumers. On Xiaohongshu<\/a>, “silicone free” and “high appearance level” (\u9ad8\u989c\u503c)\nshampoos are the hottest search terms and top headlines. Other concerns include\nshampoo fragrance, product endorsers and brand\nreputation. Coupled with the fact that still\nmany Chinese consumers buy shampoo at supermarkets, a beautiful appearance can attract\nthe eyes of consumers.<\/p>\n\n\n\n

\"silicone
[Source: Xiaohongshu, \u201csilicone free shampoo\u201d]<\/figcaption><\/figure><\/div>\n\n\n\n
\"Chinese
[Source: Xiaohongshu, \u201dhigh appearance level shampoo\u201d]<\/figcaption><\/figure><\/div>\n\n\n\n

How to choose the right distribution channel for your shampoo brand in\nChina<\/h3>\n\n\n\n

The Chinese shampoo market\u2019s\npreferred distribution channel <\/a>remains primarily brick-and-mortar. Consumers tend to go to stores to choose\ntheir hair care products, because viewing\nthe packaging is crucial to them. Besides, hair-care products are distributed in supermarkets, department\nstores and the Internet. Nearly a third\nof the industry’s sales are through physical channels.<\/p>\n\n\n\n

Nevertheless,\nfor foreign brands that entering the Chinese shampoo market\nfor the first time, offline retail is probably not the first choice. Firstly,\nChinese consumers who buy shampoo in supermarkets rarely choose the brand they\nsee for the first time. Young consumers, in particular, are more likely to have\ndecided which brand of shampoo they want before they\nshopping in the supermarket. This is not\ngood for a new foreign brand.<\/p>\n\n\n\n

Compared to\nsale in offline shops, the digital <\/a>channel seems more suitable for\nundertaking a first commercialization in the\nshampoo market in China.\nStarting with e-commerce<\/a> and social platforms is faster and\nrelatively low-cost. It is a common means\nfor brands to release new products by letting KOL<\/a>s conduct product trials and pass on\nthe experience on to customers. It is always best to reach your customers\nthrough word of mouth. Of course, these are for middle-end and high-end\nproducts. For low-end and cheaper products, it is more effective to attract\nconsumers in second-tier and third-tier cities with price through offline stores.<\/p>\n\n\n\n

\n\n\n\n

Let the new China Paradigm have positive economic leverage on your business<\/strong><\/p>\n\n\n\n

Listen in China Paradigm in iTunes<\/a> <\/p>\n\n\n\n

\"China<\/figure>\n","protected":false},"excerpt":{"rendered":"

The prospects of the shampoo market in China are booming Shampoo, as a daily consumer product, has one of the highest penetration rates of personal care products in China. Most Chinese people wash their hair every 2-3 days and buy a shampoo and hair-care products every few months. The size of the shampoo market in […]<\/p>\n","protected":false},"author":38,"featured_media":44505,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"content-type":"","inline_featured_image":false,"episode_type":"","audio_file":"","cover_image":"","cover_image_id":"","duration":"","filesize":"","date_recorded":"","explicit":"","block":"","filesize_raw":"","footnotes":""},"categories":[76,348,5354,349,74,68,73],"tags":[461,316,9375,1216,470,5560,469,471],"daxue_industry":[],"class_list":["post-2485","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-brands-in-china","category-china-markets","category-cosmetics-and-personal-care-market-in-china","category-export-import-business-in-china","category-fmcg-in-china","category-life-of-the-chinese-consumer-in-china","category-retail-in-china","tag-fierce-competition","tag-foreign-companies-in-china","tag-hair-care-products","tag-head-shoulder","tag-pg","tag-personal-care-in-china","tag-shampoo-market-in-china","tag-unilever"],"acf":[],"yoast_head":"\nThe shampoo market in China: trends and opportunities for new entrants<\/title>\n<meta name=\"description\" content=\"Most Chinese people wash their hair every 2-3 days and buy shampoo and hair-care products every few months. 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