Premiumization Driving Sales In Many Categories Worldwide

A Nielsen report highlights the strength of the premiumization trend that is driving sales around the world and looks set to continue as powerful underlining shifts play out. Rising income and a desire for exceptional quality (cited by 54% as a factor in premium purchases) and superior performance (46%), are core drivers. Interestingly, Nielsen finds that products with social or environmental benefits have premium potential. Some 42% of global respondents say they’d be very willing to pay a premium for products made with organic or all-natural ingredients, while nearly the same proportion (39%) say they’d pay extra for sustainable or environmentally friendly products. Premium is well established in many markets – it already accounts for about 25% of dollar sales in both the personal-care category in the U.S. and Southeast Asia and is growing faster than other segments.  In Southeast Asia, for example, the premium segment grew 21% from 2012 to 2014, over double the rate of the ...  More

"Global Premiumization Report: Moving Up", Nielsen , December 01, 2016

Chinese Consumers Are Adapting Priorities As China Changes

In an interview, Delon Wang, Manager of Asia Pacific Trends at Mintel, warned that the rapid growth seen in China’s consumer goods industry might slow as economic growth decelerates and the population adapts priorities to the new China, focusing for example on buzzwords like ‘ancient’ and ‘old’. Mintel’s Global New Products Database indicates that product claims including the word "ancient” on packaging grew 56% in the first half of 2016 within China’s beauty and personal care and food and drink and categories. Wang said that consumers are demanding authenticity, and they are increasingly concerned about health and the environment. Value remains another key attribute for consumers. More consumers are also looking at opportunities to be entrepreneurs themselves in a bid to improve financial security during turbulent economic times, and many are choosing subscription purchasing for their fitness and beauty items. Brand loyalty is highest among the middle-class consumers (68% versus 50% ...  More

"China’s cosmetics and consumer trends in 2017 part I: A change of pace", Cosmetics Design, January 10, 2017

TCM Gets A Bigger Role In Beauty

The Beauty industry is increasingly borrowing from Traditional Chinese Medicine. Amway is just one company expanding its use of TCM ingredients. Jia Chen, vice president of the Amway Botanical Research Center, says that TCM is a “life philosophy”, covering diet, nature and spirit. Amway is already using TCM ingredients in its Nutrilite products, but the Center is looking to expand the scope. In China, consumers are looking for more from their Beauty products, such as a link to their cultural heritage and the benefits of TCM, and TCM Beauty is becoming very popular among younger consumers in Asia.  

"Trend Watch: Cosmetic and Personal Care Ingredients Borrowed from Traditional Chinese Medicine", CosmeticsDesign.com | USA, January 10, 2017

Alibaba Plans To Acquire Department Store Chain Intime Retail Group

Chinese online retailer Alibaba Group Holding Ltd. is leading a group of investors seeking to acquire department store chain Intime Retail Group Co. for as much as $2.6 billion. Through the proposed partnership with traditional retailers, Alibaba founder Jack Ma seeks to create a new business model for the online and offline retail markets. Alibaba believes that its “superior computing power,” experience selling billions of dollars of goods online, as well as its strong relationships with government and leading brands will enable it to succeed.

"Jack Ma Bets $2.6 Billion He Can Revamp China Retail Sector", Bloomberg Technology, January 11, 2017

Revlon's New CEO To Set Out Plans For Turnaround

Former Colgate-Palmolive executive Fabian Garcia, the new Revlon CEO, will soon lay out his approach to reigniting the company, with management restructuring, bringing outsourced processes back in-house, and returning to China. Investors were not happy when he was unveiled last year. They had hoped Revlon would be sold after years of failure by successive CEOs to turn the company around. Last fall, Revlon acquired Elizabeth Arden for US$420 million, adding fragrances and skincare products to the Revlon portfolio dominated by color cosmetics, and expanding its geographic reach. With combined annual sales of around $US3 billion, its debt burden is heavy, having borrowed $US2.6bn for the acquisition and to refinance the combined company’s existing debt. Some 350 jobs are expected to go by 2020, but sales have been rising and were up 3.1 percent on a pro forma basis for the first nine months of last year. However, Revlon has still been losing market share.

"New chief ­Fabian Garcia vows to revitalise Revlon", The Australian, January 12, 2017

Alpecin Launches Retail And Online Channels In China

Dr. Wolff is now selling its Alpecin line of shampoos in China. According to the company, it entered the China market in April 2016 to help ease Alpecin shortages in Germany and provide Chinese consumers with convenient and safe channel for buying the anti-hairloss shampoos. Alpecin products are available in more than 2,000 Watsons stores across the country, as well as on e-commerce site Tmall.

"Alpecin Opens Official Retail Channel in China Helping to Cool Down Massive Product Demand from Chinese Cross-Border Shoppers in Germany", PR Newswire, January 17, 2017

Dove Hair China Launches Online Campaign Calling On Women To Be Proud Of Hairstyle

Unilever's Dove Hair China brand launched its “My hair: It has to be my way” online campaign in the country. Featuring various women of different ages and highlighting the brand's “Real beauty by real women” brand slogan, the campaign seeks to empower women to remain true to themselves by coming out with their individual choice of hairstyle. Developed by Ogilvy & Mather Shanghai, the campaign includes an online movie, social media content, and follow-up videos featuring Chinese women sharing their hairstyle stories.

"Dove Encourages Women to Wear Their Hair with Pride", Marketing-Interactive, January 18, 2017

Consumer FMCG Spending Growth Continues In China, Report Says

Consumers in China bought 2.2 percent more FMCG products during the 12-week period ending December 2, 2016, compared with the same period in the previous year, according to Kantar Worldpanel China. Data from the market research firm showed online spending grew 50 percent during the period, which includes the Double 11 festival. For the four-week period ending December 2, 2016, ecommerce penetration grew to a record 20.5 percent, driven by Double 11 festival spending.

"China’s ecommerce grows by 50%", Kantar Worldpanel, January 27, 2017