2021 Double 11: How did China's makeup industry perform?

TMO GroupDecember 17, 2021
2021 Double 11: How did China's makeup industry perform?

It has been more than a month since the end of the double 11 promotion in 2021. The epidemic struck early last year, and everyone put on masks. However, the performance of the e-commerce makeup market during 2020 double 11 was not affected at all with the sales increased rather than decreased compared with 2019. And what will be the market performance of double 11 this year?

TMO group has collected the e-commerce data of the makeup industry during the double 11 this year from Alibaba's e-commerce platform family and made a comprehensive data pack, collecting the first-hand data in the industry such as the overall sales trend of the market, best-selling makeup products, best-selling makeup brands, price range and platform hot search words. We try to help you understand the volume and growth of the market, new consumption trends, consumers' changing demands and discover new industry opportunities!

Makeup Market Overview

Overall, the makeup industry during this year’s double eleven underperformed compared with last year and the sales revenue of all product categories significantly declined. Although Perfect Diary still won the championship in brand store sales, its sales volume dropped by 46% this year. The data shows that over the past year, the number of brands, SKUs and stores in the makeup e-commerce industry have increased significantly compared with last year, and the market may be close to saturation. On the contrary, consumers' desire for beauty consumption has obviously subsided after the first year of the epidemic. It seems that major brands need to rack their brains to create new product selling points and stimulate consumption in the coming year.

Sub-category market share

  • In terms of the sub categories, the sales revenue of face products still ranks first among all sub categories, with the market share reaching over 40% of the whole market.
  • In recent years, new brands have entered the market. Lip and eye products, as low threshold products, are often the categories that consumers are more willing to try, resulting in the continuous reduction of the sales unit price of these products. Without more prominent selling points, the products take high performance-price ratio as their main way to attract consumers.
  • For the face products, especially foundations, consumers tend to be more stuck to the products they are used to. They are more willing to buy and repurchase the brands and products that are suitable for their skin quality, of good quality, and with good user feedbacks. And that's why Estee Lauder's DW liquid foundation has been the category's best seller for quite a long time. Therefore, although there have been hot-selling affordable foundations emerging in recent years, the price competition will not be so fierce compared with other products.

Best-Selling Makeup Products and Brands

  • Florasis's loose setting powder has once again become the monthly best-selling product, and it consistently ranks among the top three in sales all year round. As a domestic makeup brand that has emerged in recent years, Florasis is popular among customers for its aesthetics with outstanding Chinese-styled design as well as good quality control, even when its price is not deemed a competitive advantage .
  • Colorkey's and Perfect Diary's lip products, as the kings of cost performance among domestic brands, have become the first choice of lip makeup for young girls in the past two years through its low price setting, good product quality, rich color selection and successful marketing strategies.
  • Estee Lauder's Double Wear liquid foundation is the only international high-end product on the list. The texture, the lasting power and the concealing power are among the best of the similar products, which makes them popular with consumers all year around.

  • Perfect Diary and Florasis still occupy the top two best-selling brands. However, compared with last year, the advantages of these two brands are no longer obvious. The market share of the top ten brands is getting closer. The market share difference between Perfect Diary (1st) and Mac (10th) is only 5%.
  • It is worth mentioning that, despite the overall decline in the market, 3CE's sales have risen, making it become the biggest winner among the top-selling brands. What's more intriguing is that every November, the sales of 3CE will skyrocket. This year, it has increased by 1351% compared with October. Its marketing strategy is worth studying.
  • In terms of international brands, the performance this year is still stable. After all, there are star products that have been selling well and a large customer base accumulated throughout the year. Even if they do not do marketing campaigns and promotions, there will still be a large number of consumers paying for their products.

Price Range

  • Generally speaking, the price of makeup products is basically around 20-100 RMB, while the products of 0-20 RMB are mostly disposable makeup tools such as cotton pads and makeup remover towels.
  • Eye makeup products and lip makeup products have the most unit prices in the range of 20-50 RMB, and the proportion of this range has increased a lot from last year. It can be seen that the market for these two types of products has indeed been highly competitive in recent years. This is a good thing for consumers, as more and more affordable domestic brand products can be made with quality comparable to those of international brands.
  • The sales range of facial products is 50-100 RMB, and most of these products are blush, highlighters, bronzers and primers. The unit price of foundation products is still relatively high, and foundations by established international brands are still the first choice of many consumers. However, in recent years, there have been quite a few less pricey foundations of about 100 RMB, which are quite good in use and can last long. Some of them have added in skin care ingredients such as hyaluronic acid and astaxanthin, which have become new product selling points.

Representative brand performance

  • On the whole, most of the brands' sales peak occurred on November 1, and the daily sales accounted for more than 2/3 of the total sales in November.
  • From the analysis of the brands’ best-selling products, it can be seen that brands with a high market share, no matter what their market positioning is, have high consumer loyalty and re-purchase rate for their top products.  As for brands with a relatively small market share, such as Carslan, their top-selling products are constantly changing and they lack cash flow products and star products.
  • In addition, cleansing products are basically in the lower position of hot-selling products of most brands, especially notable brands like YSL. Because of the high unit price of their makeup remover products, and there are many alternative products on the market that have similar effects. People are often unwilling to spend a lot on a bottle of makeup remover.

Conclusion

In general, the overall performance of e-commerce in the makeup industry during Double Eleven this year is not as good as last year, with more brands and stores entering but not bringing higher sales. For consumers, products of simply good quality are no longer enough to become a consumer pain point. More and more consumers want to buy products with both design and quality at low prices. Design aesthetics and marketing strategies have gradually become a brand’s key to success in the market. For all brands, how to launch more attractive products to attract customers and how to better drive the market really requires careful research and planning.

 

Click here to download the Double Eleven Makeup Data Pack in full!

We are have an article especially for the Best selling cosmetics and makeup products during 11-11, go and check it out!

For more information, you can visit our official website to learn more about TMO group and our services. You can also send an email or call the hotline +86 (0)21 6170 0396. We have e-commerce and consulting experts with 20+ industry experience who will provide you with exclusive solutions.

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