Consumers are refocusing on “essentials and real value” – Shiseido

Kentaro Fujiwara reflected on the past decade in China: “Over the past 10 years, consumption has been driven by rapid and accelerated digitization in people’s lives, supporting GDP growth.

“It was based on stable employment and higher income and consumers, especially younger people, gained confidence in China’s future and boosted consumption.”

Against this background, Chinese consumers relied on price to determine the quality of products, fueling a penchant for high-quality cosmetics from foreign brands, he continued.

“Consumers’ preference for imported products drove the rapid expansion of the prestige cosmetic market, and growth was boosted by the emergence of e-commerce focused on Tmall as a new consumption channel.”

However, repeated lockdowns and higher unemployment rates have created a lot of uncertainty for Chinese consumers. This forces them to limit consumption and refocus on saving.

“The changes are so dramatic in China with a resurgence of COVID-19 this time consumer confidence has changed so much,” he said.

Luxury and function

At the same time, he noted that this also pushes Chinese consumers to value long-term effects and well-being.

“As a result, they give more importance to the effects and efficacy of skin care products and start buying local brands if they are worth the price. Younger people are becoming more selective and also focused on low prices.”Fujiwara said.

In this environment, the company expects an emergence of local beauty brands, especially skin care brands backed by scientific research. On the other hand, Fujiwara highlighted opportunities for Shiseido in the luxury beauty segment.

Consumers are refocusing on “essentials and real value” – Shiseido

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