5% of non-food categories are relying on consumption upgrades to grow
According to Mintel's data, the retail sales of China's toiletries products reached 36.738 billion yuan at the end of 2014. By 2019, this figure will reach 49.804 billion yuan. Although the retail sales are huge, the slowdown in growth is also a fact, with a growth rate of 4.9% in 2016. At present, the market sales of shampoo products have become saturated, and the growth of retail sales is mainly driven by the increase in unit price.


The growth of the care market will mainly come from consumption upgrades, while the younger generation is the main force driving the consumption upgrade. Consumers are more demanding on product efficacy, raw materials, safety, convenience and comfort and are willing to pay for these needs. “No silicone oil” is a typical representative of the consumption upgrade of individual care products.


In 2014, the concept of silicone-free oil was first introduced to China by the Japanese brand Mei Tao, but it was not until 2014 that “silicone-free oil” really started to fire in China. The new brand source was “made for silicone-free oil”, only 2 years old. , Ziyuan's channel outlets have exceeded 30,000, and scored 4.6% of the market share. The concept of “silicone-free oil” has been deeply rooted in people's hearts. In addition to the source of nourishment, there are new brands such as pink elephants that are cut from infants and toddlers. The market for silicone-free oil has matured. According to the plan of the parent company of Ziyuan, the amino acid shampoo will be “silicone-free oil 2.0”. The emerging life brand “Ziguan”, which was founded in 2015, is the amino acid shampoo and has obtained A+. Round financing.


So, in addition to silicone oil and amino acids, will there be a new direction for the upgrade of the product category? Fragrance care may be a possibility.


Aromatherapy is a scouring-based product that is known as Aroma Shampoo. Different from the "chemical" of ordinary daily-care products, in addition to the fragrance, the fragrance-based care will also emphasize the planting of the product. Therefore, it is common practice to incorporate the floral, grass or fruit scent of the plant into the product to achieve a lasting fragrance. Obviously, young women are the target group of fragrance care products. Although at the C end, the fragrance care has not yet formed a wave, but the merchants have already begun to act.


In 2015, LG borrowed the image of the face shop to enter China. The Philippine poetry shop's fragrance care and bathing products are exclusively for the Chinese market, and production is also selected in China. In addition, Ruiqiu Moisturizing Cream, which has been in the purchasing circle for a long time, has also been introduced into the Chinese market by LG Life and entered the Watsons sales. Local brands have also launched special fragrance wash hair care products. The source of the word-of-mouth of silicone-free oil has also launched the “YUNGen Flower YOUNG” series, which is specifically cut into this market segment and sold exclusively at Watsons. It can be found that the fragrance care has not been fully sold in Shangchao, CS, etc., and it can be considered that it is still in the water test stage.


At the same time, the Japanese giants are also making new attempts.


Following the introduction of Ultra DOUX in China in 2016, at the beginning of this year, Roger & Gallet, the high-end fragrance brand of L'Oreal Paris, also entered the Chinese market with high profile. The former is a brand of hair care products that focuses on the French concept of nature. It is aimed at the latest trends brought about by the consumption upgrade and niche demand changes in the Chinese hair care market. Although the latter is a comprehensive fragrance brand, personal care is also One of its categories.


Unilever has no new brand launches. Rather, it has upgraded the “Lishi” that has formed a mature market, and launched a series of shampoos and conditioners with a silicone oil and aroma as the selling point. However, this new product does not seem to over-emphasize the concept of fragrance care. In the eyes of consumers, it is more like a “winding” with the concept of “silicone-free oil”.


As for P&G, there is no new action at the moment. In fact, in 2001, Icahn was introduced to the Chinese market by P&G and wanted to take a slice of the “bodied shampoo” market. Although there was no concept of aromatherapy at the time, Icahn's “herbal care” products and strong aromas did form a differentiation in the short term. Founded in 1931, Icahn is the first brand on the market to develop herbal extracts. However, Icahn’s China Road did not go smoothly. In 2014, P&G sold Icahn. However, Icahn is only a mistake of P&G in the marketing strategy, and has nothing to do with the product itself.


After the silicone-free oil, will the fragrance wash be a new trend of consumption upgrade in the daily market?


Pre- and post-revision Ica products


If the silicone-free oil is proposed to "wash your hair well," then the fragrance wash can be firmly established in the market with the help of "good hair care." According to Kaddu's data, 80% of sales in the care market are contributed by shampoo products, while hair care products such as conditioners account for only 20%, and the market space for hair care products is relatively large.


In addition, shampoo emphasizes functionality, just as the “silicone free” concept is for scalp cleansing. Considering consumers' preference for health and organic products, most fragrance care products are selected in the market positioning and are combined with “herbal health” and “plant extract”. The functionality is weak, but the concept of nursing is enhanced.


Traditional fragrances are often linked to perfumes. After the brand is launched, the brand will introduce products such as shower gel and body lotion according to market demand. Fragrance care is in the field of hair care, so for now, old-fashioned fragrance giants will not challenge this new market.


Considering that the current popularity of domestic fragrance consumption (perfume, aromatherapy, etc.) is not high, fragrance care may help the Japanese brand to seize the market before the fragrance giants enter the field, but the fragrance market The weakness may inevitably reduce the market-scale ceiling of the fragrance wash.