Much has been made in recent weeks of China’s troubles—a growth rate that’s slipped to only 7%; a painful, albeit necessary shift from an export- to a consumer-driven economy; condemnation from its neighbors in Asia and around the world, and most recently, a devaluation of the yuan that's riled financial markets around the world. But with a population of 1.3 billion, and a growing fondness for sophisticated skin and hair care products, China remains a vital component of any multinational’s growth strategy.

No wonder why attendance at the Personal Care Conference, held in June in Shanghai, reached 400, according to Ringier executives.  

“This year we received a lot of positive feedback from delegates and speakers as well as sponsors,” said Selena Li, conference director, Ringier Events. “Most of them told us that they learned a lot from our strong lineup of speakers and topics.”

The two-day event included presentations on a range of subjects including sensitive skin, color cosmetic, anti-pollution actives and shampoo formulations. But the focus wasn’t just on China, it was on Korea, too.

Michelle Mai of Euromonitor International reviewed color cosmetics trends in China, noting that emerging markets are playing an increasingly important role in the global beauty business. According to Euromonitor data, China’s beauty and personal care market grew more than 8% last year, compared to a 1.6% gain for the rest of the world. More gains are on the way, as Mai predicted that color cosmetics sales will rise nearly 75% to $5.9 billion during the next five years.

One trend driving color cosmetics sales in China is the popularity of cushion technology, which has its roots in Korea. Cushion foundation, according to Mai, has taken the Chinese beauty industry by storm, with brands like Laneige, Mamonde, Sulwhasoo and Etude all offering cushion-type formulas.

Korea has also played a role in lip product sales; Maybelline New York launched Bitten Lips, which is in step with the current Korean trends in lipcolor, according to Mai. To appeal to a growing fan base in China, Maybelline New York hired pop singer Ziqi Deng as a spokesperson for the brand. Meanwhile, Carslan introduced Berrygirl lip product that looks similar to Clinique’s Chubby Stick, but is about half the price.

How Chinese buy their products is changing too. In 2009, just 1% of color cosmetic purchases were made online, but just five years later more than 19% of sales were made on the internet.

The far-reaching Korean influence on the global beauty industry was evident throughout the conference.
 
Hair Care Trends

AmorePacific’s Byung Ha Kang updated attendees on the latest hair care trends in South Korea. He noted that global hair care sales topped $81 billion last year, with the fastest growth in Asia and Latin America. In fact, according to Euromonitor’s data, the Asia-Pacific region will post sales gains of 5.9% CAGR through 2018, while Latin America will enjoy a 6.7% CAGR.

More specifically, the Korean hair care market had a CAGR of 5.7% from 2010 to 2014 and is expected to enjoy a compound annual growth rate of 5.4% through 2018, which would put sales at more than $1.2 billion at the end of the period. What’s driving the market? According to the speaker, scalp care, damage care, fragrance and natural ingredients are the major trends now. But in the future, anti-aging will become more important.

“Anti-aging is not limited to skin,” he explained. “It is a concern in hair care in areas such as volume and gray hair.”

Ha Kang added that consumers are also looking for more affordable, yet professional options and that dry shampoos and cleansing conditioners will become more important. What’s happening in Korea is impacting China, he insisted. For example, Ryo is Korea’s leading premium hair care brand with more than 40% of the Korean herbal medicine shampoo market. In July, the Ryo anti-hair loss line was recently launched in China.
 
Look for more updates from the conference on Happi.com. The 2016 conference and exhibition will be held in June.