That’s according to Azelis, which has said it would continue its strategic investment into the Chinese market, despite the impact of COVID-19.
“COVID-19 has slowed down the industry but has not stopped the consumption. If we take the example of skin care, in 2019, the growth forecast for 2020 was set at 11%, but that was adjusted to 4% due to the pandemic, showing still a growth,” said Laurent Nataf, CEO and President Asia Pacific, Azelis.
Nataf added that he was certain the industry will recover in the short- to medium-term as the ‘new’ normal kicks in.
“For instance, to adapt to the new demand, we have seen new products such as non-transfer makeup or anti-maskne skin care solutions being released.”
In particular, the company sees exceptional potential for the skin care market.
Taking on key trends
The firm’s team believes that it can tap into four key trends in China’s personal care market: innovative ingredients, multi-purpose products, online attractiveness and masstige.
In terms of innovative ingredients, the company has observed a rising demand over the past few months for ‘Skinintellectual’ products that appeal to a growing demand for health-conscious products.
“Consumers are building extensive knowledge in terms of ingredients and composition… They are looking for ingredients with proven scientific benefits to cope with the challenges of our environment, such as pollution, stress and ageing.”
The company also expects to see a growing preference for a more minimalistic beauty routine, hence more demand for multifunctional products.
“Layering is part of the Asian beauty routine; however, people are looking for solutions to maximize their time, while enjoying their beauty ritual. This is why we believe in multi-purpose products and transformable applications,” said Nataf.
Additionally, with a growing number of new domestic brands sprouting up, the company expects to see the growth of the masstige market, said Nataf.
“Thanks to the growing number of local players, we see the development of masstige in China. Indeed, those players bring at an affordable price highly advanced, premium products to the market.”
This trend is contributing to the ever-saturated e-commerce beauty market and pushing brands to stand out, Nataf added.
“The e-commerce platforms are highly concentrated, therefore, to stand out, brands must release appealing products. They can work on different aspects of their formula such as the visual, the application and experience, the claims, and originality. Brands need to create products that are unique and can create an online buzz.”
On October 28, the firm announced that it has signed an agreement to acquire 100% of the shares of Ixom’s Bronson and Jacobs Hong Kong Ltd business and Bronson and Jacobs China, its fully owned subsidiary in Shanghai.
Bronson and Jacobs China, specialized in the distribution of personal care ingredients and predominantly for skin care, represents many global principals, and has offices in Hong Kong, Shanghai and Guangzhou.
“Bronson and Jacobs is a reputable distributor of ingredients that shares with Azelis the same values and work ethic. They also take at heart innovation through formulation, aiming to bring the latest technical solutions to the market. They are also referenced at key customers, broadening our market penetration and reinforcing our customer intimacy,” said Nataf.
The acquisition follows the company’s acquisition of CosBond in April this year.
“Thanks to our organisation in personal are, reinforced by our two recent acquisitions, we cover all the segment categories throughout the country: skin care, hair care, make-up, toiletries and sun care,” said Nataf.
The latest acquisition of Bronson and Jacobs would strengthen its skin care business, Nataf added.
“We will reinforce our expertise in skin care as well as our product offering to respond to those trends. However, we will continue to deliver the best service for all our market segments.”