Industry News: Breaking Through the Red Ocean: How Personal Care Brands Can Achieve Market Growth

With consumer demand for beauty and personal care products gradually recovering, China's cosmetics retail market is steadily rebounding. Consumer intentions and demands are quietly changing as well. Awareness of personal care is increasing among consumers, leading to upgraded consumption demands and driving market growth. As various brands choose to focus on different tracks, a new landscape is emerging in the omnichannel setup.

Online Data Insights in the Personal Care Market

 

Overview of the Personal Care Industry

Large Market Scale on Taobao Platforms

The monthly sales of the personal care industry on Taobao platforms exceed 3 billion yuan, with the market scale maintaining a high level. Every November, due to the "Double Eleven" shopping festival, consumers tend to stock up on personal care products, leading to peak sales. The three major categories are oral care, body care, and hair care.

Growth Phase on Douyin Platform

The sales of personal care products on the Douyin platform are experiencing a high-speed growth trend, indicating a positive outlook for the overall personal care market.

Brand Differentiation Period in Personal Care

New domestic brands are rising. Since 2000, the personal care industry has undergone four development stages. As consumer decision-making becomes more scientific and rational, diversified and refined demands drive continuous product innovation, intensifying brand differentiation. In this context, new domestic brands with sharper consumer insights, better understanding of new media marketing, and deeper omnichannel layouts are poised to stand out.

Distinct Characteristics of Target Groups in Personal Care Industry

Refined women, young professionals, and avant-garde students have high purchasing power in the personal care market, characterized by frequent purchases, high spending per transaction, and buying multiple items. Refined women and young professionals prefer international high-end brands, while avant-garde students and cost-effective youth favor new and trendy brands.

High-Purchasing-Power Groups Focus on Detailed Care Steps and Advanced Categories

Refined women and young professionals advance their consumption categories, using advanced oral irrigators and whitening agents for oral health management. They also have more refined hair and body care routines, favoring advanced products such as scalp pre-wash and bath oils. Cost-effective youth focus on menstrual hygiene and care, while avant-garde students emphasize comprehensive grooming from head to toe.

Industry Trend Outlook

1.Functional and Scene-Specific Personal Care Products

2.Consumers Willing to Pay for Fragrance; Fragrance Becomes a Key Consideration

3.Emerging Personal Care Brands Focusing on Fragrance, Actively Entering the Scent Economy

4.Online Content as a Crucial Channel for Consumer Engagement; The Industry Needs More Differentiated Streaming Content to Attract Potential Consumers

5.Consumers Prefer More Professional Personal Care Content to Help Reduce "Trial and Error Costs"

Global Beauty and Personal Care Development Trends: 5 Key Elements

As consumer recovery is on the horizon, what hidden trends lie within the global beauty and personal care industry? How should domestic brands leverage these trends?

When discussing global beauty and personal care innovation trends, it is essential to reflect on the "new consumer wave" from three to four years ago. During that time, many new brands emerged in both domestic and international beauty and personal care fields, each targeting different market segments and aiming to capture the young consumer demographic. However, a surge in demand does not necessarily equate to product sales, and coupled with the darkest moments of the three-year pandemic, we noticed that the top search rankings on major platforms saw fleeting guests who were quickly forgotten by consumers.

Fortunately, the market is beginning to warm up, and a new wave of consumer enthusiasm may be on the horizon for the global beauty and personal care market. In facing this proposition, the entire industry is speculating about what new trends and subcategories will emerge in the future.

Trend directions are always linked to data, and we have identified five key elements for those brands and market segments that have already entered the public eye.

 

Concept Trends

Keywords: Smart, Customized, Healing

The ever-changing beauty and daily chemical market always bring surprises and endless imagination. New demands continually emerge, leading to more and more new concepts in beauty and daily chemicals. These concepts collide and ultimately create a vibrant new consumer world.

1.Metaverse Beauty

The concept of the metaverse originated from Neal Stephenson's novel "Snow Crash," where the metaverse is depicted as a 3D space in virtual reality.

Currently, the "metaverse beauty" concept lacks a unified definition, but it generally refers to the application of virtual reality, augmented reality, artificial intelligence, and other technologies in the beauty industry. This allows consumers to try different makeup styles in a virtual world, browse various brands of cosmetics, and receive advice from professional makeup artists, providing a whole new beauty experience.

Many brands are transforming online interactions and in-store shopping experiences, offering AR virtual makeup software that enables customers to select the most suitable lipstick, foundation, blush, and eyeshadow shades through AI and AR-driven solutions.

For example, Sephora's mobile app uses an AR tool called Sephora Virtual Artist, which uses facial recognition to allow customers to try thousands of different types of makeup at home with their phones. Although AR virtual makeup is not new, it has become a trend in the beauty world as more brands and companies explore this space, though it still needs time to reach a breakthrough.

In recent years, many international and niche brands have launched metaverse products. Current mainstream trends in "metaverse beauty" include VR/AR technology (such as virtual makeup), NFT currency, gamification interactions, virtual brand ambassadors, and futuristic colors.

2.Customized Cosmetics

Customized cosmetics are not a new concept. In recent years, many makeup, hair care, and skincare products that emphasize customization have emerged, and this trend shows no signs of slowing down.

As the name suggests, customized cosmetics refer to brands using specific formulas and technologies to tailor products based on different skin types and needs, even considering usage scenarios.

Currently, customized cosmetics mainly follow two models. The first is private customization services, where brands design exclusive products for different skin types. The second model caters to a broader audience by combining the effects of different types of products.

In the domestic market, the customization trend has not yet fully formed, but a few brands have entered this field through differentiated positioning, focusing mainly on hair care products with various efficacy combinations. For example, products are recommended based on individual needs through data recommendation algorithms or custom formulations to meet the demands of different skin types and issues.

Compared to the domestic market, the customization concept is more mature abroad, with a wide range of application scenarios. Examples include skin tests based on hormones, gene testing for custom products, AI and AR algorithms for personalized makeup and fragrances, and at-home custom skincare from finished products.

It is worth noting that consumers have higher expectations and demands for customized cosmetics, requiring brands to have stronger research and development capabilities.

3.Ayurvedic Skincare

Ayurveda is an ancient Indian medical system that has been around for over 5000 years. The term Ayurveda combines the Sanskrit words "ayur" (life) and "veda" (science or knowledge). It is a medical system that also represents a healthy lifestyle, emphasizing the connection between the mind, body, and environment.

We have observed innovative cases mainly using adaptogenic plants and herbs such as Ashwagandha, saffron, and turmeric to help people relieve stress and relax. The categories are concentrated in hair care and facial care, with products launched in various scenarios to provide a healing experience.

For instance, Codex Beauty Labs, a plant-based biotechnology skincare company, launched the Shaant series, utilizing biotechnology active ingredients from Ayurvedic plants for balanced skin microbiome care.

Australian oral care brand KEEKO, inspired by the Ayurvedic practice of oil pulling, introduced a mouthwash oil claimed to clean and detoxify teeth and gums while promoting digestive system activities from teeth to stomach. Users need to swish the oil in their mouths for 5-15 minutes, spit it out, and rinse with water.

It is noteworthy that the domestic brand Canban has also launched mouthwash oil, although it does not emphasize Ayurveda as a selling point.

 

Packaging Trends

Keywords: Multi-tube, Multi-compartment, High-efficiency Freshness

The era of efficacy skincare has set higher standards for packaging materials, leading to the emergence of dual-tube and triple-tube essences, which are becoming more common than in previous years.

Innovative multi-compartment and multi-tube packaging designs continue to emerge, primarily in facial essences and masks, gradually extending to oral care and hair care products.

Currently, dual-tube and triple-tube packaging dominate, with triple-tube products being relatively rare, mainly promoted by international brands like Laneige and Lancôme. Some domestic brands, such as Proya and Inoherb, are also experimenting in this area.

1.Compartmentalized Packaging for Added Value

Common compartmentalized packaging includes water-oil separation, mask-liquid separation, and freeze-dried compartment designs. For example, the "oil mask" concept features dual-compartment packaging for facial care with essence oil and mask in a two-step process.

Additionally, there are new products with three-body partition designs, such as Spring letter's three-body retinol essence using water-oil-powder three-body patent design for ingredient stability and immediate activation upon mixing.

In 2021, Winona launched a three-body mask combination with three different functional masks for T-zone, U-zone, and full-face care.

2.Multi-tube Essence for Simplified Efficiency

Multi-tube independent design packaging for facial essences offers multi-effect solutions in one bottle, reducing the need for multiple products and streamlining skincare routines.

For example, Laneige's golden three-tube essence claims to provide anti-aging benefits with a 1+1+1>3 skincare experience.

The packaging features a three-tube design to preserve different textures of essences, with a rotating upward design to protect ingredients from light and oxygen, ensuring overall stability and freshness.

3.Multi-compartment Packaging Penetrating Multiple Categories

Multi-tube and multi-compartment designs are extending beyond facial care to hair care and oral care products. For instance, WO launched a dual-tube whitening toothpaste with an innovative "concentric circle" design, featuring two outlets for whitening and maintenance effects in a single tube.

Raw Material Formula Trends

Keywords: Eco-friendly, Sustainable

In recent years, the eco-friendly trend has spread globally, remaining strong and impacting the field of raw material formulas. This has led to a significant release of demand for upgraded and biomimetic cosmetics. It is foreseeable that eco-friendly and sustainable raw materials have become the main theme of the global beauty and personal care market.

1. Upgraded Raw Materials

Upgraded raw materials involve reusing and recycling waste and non-renewable resources to produce more eco-friendly and sustainable materials.

As environmental and sustainability concerns become global hot topics, the application of upgraded raw materials is increasingly widespread, reducing the consumption of original materials and minimizing waste streams, air pollution, water pollution, and greenhouse gas emissions.

Many brands have ventured into the "upgraded" field, commonly using mainstream ingredients such as coffee grounds, agricultural fruit and vegetable waste, and flower by-products. For example, My Skin Feels launched a cleanser with upgraded food waste ingredients, including orange juice waste.

TATCHA launched a silk essence, using upgraded and recycled cranberry and sea fennel to replace retinol.

From the raw material perspective, this year, global fragrance giant Firmenich introduced Muguissimo, a synthetic material derived from upgraded raw materials, while French Caribbean beauty brand Kadalys collaborates with banana growers in Martinique to convert fruit waste into potent patented bioactive ingredients for beauty products.

In the domestic market, "upgraded" products are relatively scarce, and the concept remains unfamiliar to some consumers, indicating a need for further education.

2.Biomimetic Cosmetics

Biomimetic raw materials mimic natural biochemical reactions and structural characteristics of organisms to create more bio-compatible and effective products.

By researching and developing biomimetic cosmetics, we can improve product quality and efficacy while reducing environmental impact and human irritation, aligning with the pursuit of green, eco-friendly, and healthy solutions.

Biomimetic cosmetics commonly use ingredients like natural plant extracts, proteins, peptides, and sugars, enhancing skin penetration and absorption for better beauty results.

Currently, many brands incorporate biomimetic technology, biomimetic formula systems, biomimetic raw materials, or biomimetic lipid concepts into their barrier repair products. For instance, Skynyrd launched a water-oil skin activator inspired by the biomimetic film-forming principle, providing a water-oil balance with a clear texture for improved skin absorption.

Guyu has launched the Snow Velvet Truffle Soothing Cream, which uses plant biomimetic barrier technology. The cream contains avocado tree fruit butter, high-concentration ceramides, and a plant sterol-based skin-mimicking formula, combined with alpine edelweiss and white diamond truffle. It is effective in repairing the skin's stratum corneum and strengthening the skin barrier.

The brand SkinSight, specializing in products for sensitive skin, has introduced the Radiant Skin Light Essence Oil. Utilizing specialized cell membrane biomimetic technology, it offers a non-greasy yet highly absorbent texture.

Population Trends

Keywords: Segmentation, Specific

Strictly speaking, segmenting specific populations is not exclusive to the global beauty and personal care market trends in 2023. However, driven by various "perfect timing" factors over the past year or two, the following groups have become the focus of this year's global beauty and personal care market. Those who accurately cater to the needs of these groups may open new consumer markets.

1.Women During Menstruation

Women's special physiological periods, influenced by hormonal fluctuations, affect not only their overall mood and energy levels but also their hair and skin conditions. Hormonal imbalances (such as progesterone, estrogen, and testosterone) can cause skin issues like acne and dryness. As people gradually shed the "shame" associated with menstruation and become more concerned about menstrual health, skincare before menstruation has become increasingly important for modern women.

This large group, struggling with hormone-induced skin issues, has not received widespread attention until now. Most healthy women have regular menstrual cycles, but the needs and challenges of menopausal women, who face changes in their menstrual cycles, also require attention.

In recent years, many overseas brands have focused on these hormonal changes, offering skincare products specifically designed for menstrual periods. This market gap is gradually being filled.

For example, the Korean natural skincare brand Knours provides a range of skincare solutions for skin problems caused by hormones during menstruation, pregnancy, and menopause. The brand follows a clean beauty approach, with products free from harmful chemicals.

Uniquely, Knours has designed a customized skincare plan using a mobile app to track users' menstrual cycles, allowing women to prepare for skin problems triggered by their periods. Users can also interact and share experiences through the app.

The oral beauty supplement brand UNOMI has also launched a menstrual stability capsule tailored to Asian women. The capsules contain a dual-effect formula of evening primrose and chasteberry, which regulate female hormones, reduce inflammation, and alleviate menstrual discomfort such as cramps and back pain.

2."Saggy Face" Group

Due to factors like staying up late, irregular routines, and stress, "saggy face anxiety" has emerged in various circles. With increased market education on preventing skin aging, solutions for "saggy face" scenarios are in high demand. Nowadays, "saggy face" is no longer exclusive to mature skin. The awareness and demand for "preventing saggy face," "anti-aging," and "lifting nasolabial folds" are becoming younger.

Data shows that anti-aging claims consistently rank high in new product launches. Popular ingredients associated with "saggy face" include hyaluronic acid, retinol/vitamin A derivatives, peptides, vitamin E (tocopherol), and collagen.

Examples include HBN's Retinol Firming Essence Milk, which contains research-grade double-active retinol (high-activity retinol + slow-release retinol ester) to effectively reduce wrinkles and lift saggy skin. 

Marubi's Reconstituted Collagen Gold Needle, with patented anti-aging ingredients, replenishes collagen deep within the skin, providing elasticity and contour support against sagging, rough, and sensitive skin.

To make "saggy face" products stand out, innovation in ingredients, packaging, and technology is key for brands.

3.Medical Aesthetic Repair Enthusiasts

As new users experience skin barrier damage and acne breakouts after acid treatments, and with the continued growth of the sensitive skin market, repair products are rapidly developing.

With the reopening post-pandemic, offline medical aesthetic repair scenarios are gradually recovering. The growth of the medical aesthetic market also drives the demand for repair products. The functional skincare market and medical aesthetic concepts are merging, boosting the growth of repair products. Consumer demographics are not limited to post-surgery skin damage needing repair; the demand for medical dressings among sensitive skin groups is also significant.

Currently, most "medical aesthetic repair" products focus on post-surgery external use, but the domestic brand indie pure has found a breakthrough with oral supplements in the repair product sector. Inspired by insights into the slow wound healing in diabetic patients, the brand developed an oral supplement called Le Le Yao Bai Drink, targeting post-surgery repair scenarios. It features ceramides and collagen, claiming that one bottle equals three bottles of drinkable non-invasive medical beauty drinks.

For consumers who have undergone medical procedures or acid treatments, choosing products with minimal, safe, and gentle ingredients aligns with the skincare needs of sensitive skin. For example, Jumiya launched the Red Face BYEBYE Water Lotion, specifically developed for damaged skin barriers. This medical-grade class II device features a simplified formula with six major exclusions, promoting wound healing, reducing discomfort, and minimizing sensitivity.

4.Sports Enthusiasts

With the increase in sports and fitness scenarios, more beauty brands are focusing on sports enthusiasts, launching products like gym-specific makeup and outdoor sports sunscreens. Brands are developing new products through cross-industry collaborations, integrating makeup and skincare, offering fine-tuned, portable, and multifunctional solutions. How can new cosmetics solutions be created for sports enthusiasts?

During sports, sweating, facial redness, and skin dehydration occur, and wearing makeup while exercising can harm the skin. Consumers seek products that integrate skincare and makeup.

Consumers' beauty product demands in sports scenarios are no longer limited to sunscreens but are gradually upgrading to other categories such as cleansing and care.

With the rise of the "beauty economy," the proportion of people in indoor gyms, yoga studios, and outdoor sports is increasing. Besides pursuing a healthy state, "expanding social circles" has become a pursuit for young people in sports scenarios, desiring to maintain a good appearance while exercising.

Niche sports like snow sports, rock climbing, and surfing are becoming popular, driving the growth of professional sports enthusiasts who have higher demands for specialized cosmetics.

Although many brands have launched products with high waterproof, sweat-resistant, and lightweight textures to cater to consumers, there are few specialized cosmetics for specific professional sports needs, such as those for professional athletes and research teams in extreme environments.

Fragrance Trends

Keywords: Functional

Unlike conventional perfumes, functional fragrances are not designed solely for scent but aim to scientifically alter users' emotions, making the body and mind feel more relaxed and happy. These products typically incorporate plant aromatic molecules, such as lavender, clary sage, and chamomile essential oils, proven to uplift mood.

Globally, brands and ingredient suppliers are entering this field, launching functional fragrance products. For example, natural ingredient manufacturer Praan Naturals introduced rosewood essential oil to regulate emotions, bringing calm and stress relief. Symrise launched Actimood® mood fragrances in 2022.

In recent years, many brands have utilized the characteristics of fragrances, such as stress and anxiety relief, innovatively extending the functionality of fragrance products to more scenarios, enhancing their value. For example, THE NUE CO. introduced "Water Therapy," a functional perfume combining fragrance with neurochemistry to mimic the calming effects of water.

Currently, the functional fragrance market is still young.

For instance, Lee extended functional fragrances to other categories, launching a series of hand sanitizers with functional scents under the new label Whiff. Each sanitizer contains scientifically proven fragrances offering additional benefits, such as relaxation, concentration, or sleep aid.

Additionally, incorporating data algorithms and scientific technology into functional fragrances is another trend. L'Or¨¦al embraced this trend by launching YSL Beauty's Scent-Sation in 2022, using headphones to track customers' emotional responses to different fragrance collections and personal scents, feeding this data to an algorithm that recommends the most suitable YSL perfume.

Givaudan also has a department dedicated to researching future technologies, analyzing extensive neuroscience data to understand consumer preferences. Over the past few years, they have used Scent Trek technology (a Shazam for scents) to capture and decompose any aroma molecule by molecule, providing perfumers with precise guidance on how to recreate it.

The business environment is ever-changing, and there is no universal key, nor is there a perfect consumer. People's changes and differences lead to diverse brand decisions. Choosing the right path and finding the correct positioning gives brands a head start.

Trends always seep outward from a "high incidence area." The wave of consumption recovery is unstoppable, and looking at personal care trends from a global perspective more easily points brands in the right direction. Which brands will keep up with the trends and seize the opportunity? Let's wait and see.

 

The Era of Rational Consumerism

How Tmall 618's Personal Care Campaign Engages the ¡°Smart Shopper¡± Demographic

The Sword of Damocles, representing the fear of consumption downgrade, hangs over every ordinary worker's head. From the fall of the high-priced ice cream brand Chicecream to the fierce market battle among coffee brands in the second- and third-tier markets, and extending to the competition among fast fashion brands for high cost-effectiveness, the first half of 2024 has been turbulent, with "price war" news frequently hitting the headlines.

These phenomena collectively tell the story of a consumption model that increasingly favors "de-high-premium," becoming the first choice for more and more young people. Consumers are now more willing to pay for "saving money" and "high cost-effectiveness." In this era of growing economic uncertainty, rational consumption has become a new lifestyle. "Bargain hunting" and "saving money" are no longer just slogans but wise choices for savvy consumers.

For brands, consumer preferences are constantly evolving, and product solutions for various issues from head to toe are continually iterating. Meeting the increasingly sophisticated consumer demand has become a pressing issue for e-commerce platforms. As various platforms gear up, Tmall Personal Care has its new proposition, collaborating with numerous top merchants to create a shopping feast that truly resonates with consumers.

Deepening Consumer Awareness of ¡°Saving Money¡±

Massive Quality Goods Ignite Tmall 618 Carnival

Tmall Super Captain has teamed up with major personal care brands like Kotex, Taotao Oxygen Cotton, Unique Elin, L'OCCITANE, Nivea, Sofy, and Libresse to provide cost-effective shopping solutions for more rational and cost-conscious consumers under the theme of the "618 Personal Care Saving Guide."

Kotex, designed specifically for sensitive skin, offers luxurious and refreshing sanitary pads made from 100% pure cotton that are soft and skin-friendly. The newly upgraded "Sun Gravity Instant Absorption Core" technology ensures a drier feel, allowing you to stay comfortable even on special days. During the 618 event, you can enjoy an excellent value offer of 198 RMB for two sets (the second set is free).

L'OCCITANE, deeply understanding the current trend of using oil for skin nourishment, has its popular Almond Shower Oil, which combines cleansing, nourishing, and protecting in one step, making it a favorite among consumers. It can also remove sunscreen, allowing users to enjoy a whitening experience without skin troubles. During 618, the attractive offer of "starting from 240 RMB, buy one get nine gifts" has enticed many consumers to make a purchase.

With the rise of women's self-care consumption awareness and increasingly stringent requirements for health and comfort, the sanitary napkin industry has been continuously innovating and upgrading products. Following the trend of healthy consumption for women's V-zone micro-ecology, Free Points Probiotic Sanitary Napkins targeted "her users" as the core group during the 618 promotion. By highlighting core benefits such as adding patented female probiotics LA88 to maintain vaginal flora balance and staying dry even with heavy flow and prolonged sitting, it successfully boosted single product sales during the event.

Of course, pursuing high quality at a low price is always the primary goal of consumption. Tmall Personal Care insists on user orientation, strictly controlling product quality while offering massive discounts to meet the dual needs of consumers for "saving money and quality," ensuring that they shop with peace of mind and confidence.

 

Leveraging the Value of the RED Platform

Achieving a Full Cycle from Planting to Pulling Up New Users

In the context of increasingly rational consumption, especially amidst the fierce competition and homogenized creative expressions of the "618 marketing wave," how can personal care brands precisely reach the hearts of consumers and become standout contenders?

This 618 marketing event saw Tmall Personal Care focus on external content seeding, launching the hot topic #Tmall618WhatToBuy to strongly attract user clicks. After accumulating user interest, they quickly launched the commercial topic #Tmall618PersonalCareSavingGuide to maximize click traffic. The topic page not only features influencer content but also guides users to share their genuine experiences. Searching #618PersonalCareSavingGuide within the platform leads directly to a summary page of content from various influencers, focusing on saving money, great products, and stockpiling, bringing a new consumption perspective of "loving oneself more."

One influencer, @Àõ×Ó´æÇ®ÈÕ¼Ç, created a post titled "Monthly Salary 5.5k Saved 14w| Cultivate Your Happy Saving Habits!" which aligns with the current trend of comprehensive and meticulous personal care. In the post, the influencer addresses user needs through personal experiences, using conversational and situational language to capture real consumption scenarios. Expressions like "Summer office long hours really need Kotex breathable sanitary pads," "Nivea's dual-tube body serum contains face-grade ingredients safe for sensitive skin," and "Vichy green label oil control bottle saves summer's oily flat hair" resonate with users' pain points, leading fans to exclaim, "It's like they've installed a surveillance camera on me," garnering thousands of interactions once the content was posted.

Aligning with the trend of using oil for skin nourishment, L'OCCITANE also conducted precise body care seeding on RED. Several influencers' immersive bathing posts successfully catered to users' psychological need for relaxation during bathing, generating 130,000 sales conversions for the brand.

So far, the campaign topic has achieved a total exposure of over 920,000 and nearly 23,000 interactions.

This external content seeding campaign created a diversified communication matrix, centered on influencer content, with hot and commercial topics as breakthrough points. Using content that hits users' pain points to provide new personal care solutions, it achieved product breakout and brand reputation buildup, completing the loop from content seeding to consumer conversion.

All these efforts highlight Tmall 618's shift from merchant-centric to user experience-centric.

Tmall 618's personal care marketing aims to provide consumers with a "three-saving" consumption experience by eliminating pre-sales and speeding up logistics, allowing consumers to enjoy high-quality products while deepening their affection and loyalty to the Tmall platform.

 

How the Personal Care Industry Stands Out in a Saturated Market

Looking back at the pandemic period, it is estimated that hundreds of personal care brands couldn't withstand the impact, with nearly 25 companies exiting the market in 2022 alone. The collapse of numerous enterprises revealed underlying issues: either products were becoming homogenous, or brands lacked recognition. Many once-popular brands were eliminated.

Despite the grim market situation, one brand continued to grow against the trend: L'Occitane en Provence. According to its financial reports, from FY2020 to FY2022, L'Occitane's net sales in the Chinese market increased from €197 million to €328 million, achieving a 66% growth.

Why did L'Occitane stand out and remain dominant while other brands suffered? Below, we will comprehensively analyze the brand from four aspects: brand vitality, memory, self-drive, and influence.

Brand Vitality: Romantic Positioning + Caring Image,

Transforming into a Synonym for a Happy Life

Brand vitality, as the core of a company's brand building, is undeniably important. Only by establishing a correct brand strategy system can it provide essential guidance for subsequent efforts. L'Occitane successfully launched its first battle in brand building with its romantic French positioning and caring, passionate brand image, capturing the hearts of consumers.

With a natural French charm, bring people happiness to life

L'Occitane Provence, the brand name alone makes its origin clear. In 1976, Olivier Baussan, who had lived in Provence in southern France for many years, bought his first distiller in his life and tried to extract rosemary essential oil in order to continue the tradition of extracting plant ingredients in his hometown. The oil was sold well in the local market. He was greatly encouraged and opened the first store in the town of Vaux in 1980. Since then, L'Occitane has officially entered the public eye.

Because of the romance of Provence, Olivier Baussan has been influenced by humanistic feelings since he was a child. With his care and love for nature, he founded the L'Occitane brand and established the brand positioning as "giving people the taste of happiness with French life and romantic feelings".

Under the guidance of this positioning, Olivier Baussan has formulated a clear product strategy for L'Occitane.

In terms of manufacturing technology, he stipulates that all products must be based on nature, that is, naturally extracted plant essential oils as raw materials, and the materials must be integrated with the unique humanistic atmosphere of Provence, presenting a healthy and comfortable feeling and an elegant and pleasant atmosphere for every consumer.

In terms of category matrix, in order to convey the atmosphere of Provence to more users, he designed multiple product lines for L'Occitane, creating different fragrance care products for different parts of the human body such as face, hands, hair, and body.

Influenced by the regional culture of Provence, Olivier Baussan has always had an infinite love and care for nature. In order to pass on this passion to more users and to better enhance the brand value, he incorporated this sentiment into L'Occitane and presented the brand's value proposition in the form of six brand commitments.

The six commitments include "helping vision", "respecting biodiversity", "reducing resource waste", "supporting craftsmanship", "supporting producers" and "empowering women's liberation". Among them, "reducing resource waste" and "respecting biodiversity" are the two core commitments of L'Occitane. In order to implement these two commitments, L'Occitane has implemented a number of actions.

In terms of reducing resource waste, L'Occitane jointly launched the "Empty Bottle Recycling Plan" with TerraCycle in 2014, encouraging consumers to participate in the method of exchanging empty bottles for points and points for gifts, so as to reduce energy consumption and damage to the environment.

In order to show respect for biodiversity, L'Occitane has launched the "Sweet Almond Conservation Plan", "Verbena Field Planting Plan", "Lavender Organic Cultivation Plan" and "Immortelle Organic Planting Project" in cooperation with local plantations.

In addition, every World Environment Day, L'Occitane will promote the protection of the earth and nature to consumers on multiple platforms. It has also held the "Green Earth Experience Exhibition" in Shanghai, and called on more people to participate in protecting the earth through theme speeches at the exhibition.

Brand memory - integrating regional design to build clear brand recognition

Brand memory is a visual presentation of brand vitality, including naming, logo, slogan, VI, etc. based on the five senses. On the premise of conforming to vitality, the more unique the design, the better the brand memory, and the more it will be remembered by consumers because of its recognition.

In terms of product design, in order to improve brand recognition, L'Occitane combines unique fragrance and regional appearance to create unique memory points for consumers in terms of vision and smell. The product is recognizable through the natural organic plant fragrance and the packaging design that integrates Provence culture and plant elements. In this way, L'Occitane not only leaves a deep impression on consumers through its products and establishes sufficient brand awareness, but also makes a visual presentation of the brand's vitality, allowing brand users to have a full understanding of the brand positioning while purchasing the product.

In terms of packaging design, L'Occitane is fulfilling its brand promise of "helping visual vision" while strengthening brand memory. As early as 1997, L'Occitane added perceptible raised dot Braille elements - Braille Braille - to product packaging, which not only formed a unique tactile memory point, but also provided great convenience for visually impaired users to purchase products. To this day, Braille Braille is still a unique brand memory point of L'Occitane, and most of its products on sale have Braille names added to the packaging.

Brand self-drive - create romantic terminal touchpoints and improve brand user experience

Brand self-drive is the only criterion for testing whether the brand experience is qualified. Only by creating a good enough experience that conforms to the brand system can the brand become No.1 in the hearts of consumers. Under the guidance of brand vitality, L'Occitane integrates brand positioning and personality into experience design, and improves user experience and builds user reputation by creating brand touchpoints that conform to unique styles.

In the design of terminal stores, unlike the modern and simple style commonly used by traditional cosmetics brands, L'Occitane continues the southern French style of Provence, using "bright yellow" as the main color to create a sense of vitality and enthusiasm, and displays corresponding raw materials in different product series areas, including almonds, immortelle, lavender, etc., making close contact with natural raw materials a reality.

Whether it is the in-store furnishings or the overall style, they are perfectly integrated with the brand tone and brand concept. In this way, every user who enters the store can immerse themselves in the atmosphere of a local town in Provence, which enhances the brand experience and arouses user favorability.

In addition to basic stores, L'Occitane also keeps up with the trend of the times. During the new retail period, it actively opened brand pop-up stores in Chengdu, Beijing, Hangzhou, Shanghai and other places, allowing consumers to experience the happiness and romance of the time in the south of France in the busy life of the city.

Among them, the "Exploring Nature Journey" pop-up store opened in Shanghai provides a 360¡ã immersive sensory experience for every user who enters the store. While getting in close contact with the raw materials of the south of France, they can feel the brand energy of romance and vitality. Here, you can not only witness the extraction process of immortelle essence and watch the gorgeous and sweet cherry blossom rain, but also enjoy the star series sweet almond hand SPA and verbena special drink provided on site.

In addition, as consumer care needs shift from face and hands to head, L'Occitane keenly captures this trend and opens its first high-end hair care experience store in Qibao Vanke, Shanghai. The basic style of the store still follows the brand's traditional southern French style, and adds high-end furnishings on this basis, providing consumers with a series of ultimate experiences from consultation, testing to care through exclusive customized hair care services.

Brand influence - Leverage on joint marketing to resolve the dilemma of limited communication

Brand influence is a brand communication activity designed for different brand and marketing goals. What to communicate, who to communicate with, and where to communicate are all very important. L'Occitane is aware of this and chooses a combination of leverage marketing + joint marketing to break the communication dilemma caused by product category reasons and open up new channels for brand marketing.

In terms of marketing communication, considering that personal care brands are easily restricted by the characteristics of long product use cycles, it is often difficult to have a sustained appeal to target users. To solve this problem, L'Occitane is guided by celebrity traffic and selects first-line celebrities as brand spokespersons, such as Zhao Liying, Zhu Yilong, Lu Han, Liu Shishi, etc. At the same time, celebrity peripherals are added to the product set to achieve the effect of leverage marketing. During the cooperation period, L'Occitane also maintained close interaction with the spokesperson, and promptly forwarded the spokesperson's new drama when it was launched to help promote it. This way of moving forward with consumers has greatly increased user favorability and enhanced brand communication.

In addition, in order to improve the timeliness and freshness of products, L'Occitane often chooses brands that match its own tone for joint marketing, which not only enhances brand voice but also strengthens brand awareness in the minds of users.

For example, L'Occitane and high-end yoga studio PURE Yoga have jointly created a long-lasting series with sweet almonds as raw materials, allowing consumers who like light sports such as yoga to enjoy the energy nourishment of sweet almonds while stretching their bodies and feeling the changes in their body and mind.

Another example is that L'Occitane and Super Plant Company jointly launched the "Sakura" series of body lotions in spring, choosing the spring flowering period of cherry blossoms, the raw material, to launch the product, calling on consumers to bid farewell to the past and welcome new expectations. The product was named after the homonym of "whatever you ask for will be granted", which implies that good things often happen to consumers.

Although the personal care industry has been in a fiercely competitive market, and was recently forced to endure the "inhumane" era raid, L'Occitane has risen again in the Chinese market in the post-epidemic era with its unique brand tone and value proposition. Under the guidance of Provence French romance, L'Occitane has established a deep brand awareness in the minds of consumers and formed a unique brand image with highly unified products, channels, and marketing styles.

Without the correct guidance of vitality, and without the complementary memory, experience, and influence, L'Occitane would not be so successful today. In fact, not only L'Occitane, but every brand should learn from this and build its brand scientifically and systematically. I believe that in the future, more Chinese brands will create our own era myth.

 

Written at the end

In general, under the combined influence of uncertain factors such as the macro environment, consumers' offline consumption frequency has decreased, and more and more demands have been transferred to online, which has also spawned more segmented demands, including requiring products to solve problems more targetedly and services to be more intimate and warm. Therefore, brands need to improve their online content output, listen to users' voices, and keep the gameplay iterating, so as to gain consumers' trust and achieve new business growth.

Regarding the future, there are still high-potential tracks in the personal care industry. If brands choose the right track and use the right strategy, they will still have the opportunity to maintain a high prosperity in the medium and long term.

  

About Us

The total value of the personal care market is expected to reach RMB 607 billion by 2028. As the personal care market becomes more diversified, new opportunities may emerge in more segmented categories, challenging the dominance of established companies and allowing niche brands to develop rapidly. So, how can we find a path to further business growth in the new year?

The 2024 Sixth Shanghai International Personal Care Expo (referred to as "PCE Yinghe Personal Care Expo") takes "creating a new personal care ecosystem" as our mission, continuously integrates global resources, and helps personal care companies achieve new growth. It will be held at the Shanghai New International Expo Center from August 7 to 9, 2024. Linked with the PCE Yinghe Personal Care Expo Guangzhou Station held at the Guangzhou Nanfung International Convention and Exhibition Center from March 4 to 6, 2025, it will bring together manufacturers from the entire industry chain, showcase cutting-edge technology new products in all fields of personal care products, and provide one-stop procurement and supply services.

In addition, in order to help personal care product companies expand into the international market, the overseas exhibition will be held at the Dubai World Trade Center in the United Arab Emirates from December 17 to 19, 2024, to open up global markets for personal care companies and achieve dual circulation development of domestic and foreign markets!