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Point-of-sale tracking for Beauty Industry in China
Jan '08
Skincare products make up the majority of prestige beauty sales in China (71%), followed by makeup (17%) and fragrance (12%), according to leading consumer and retail information provider The NPD Group Inc.

Anti-aging and whitening products are the drivers of growth in the skincare arena in China. The prestige beauty industry in China looks much different than it does in the U.S. Nearly three-quarters of all sales in China come from skincare, compared to just a third of sales in the U.S.

The NPD Group / Jan-June 2007:
Chinese women, just like American women, are willing to spend money on skincare products that contain anti-aging elements. The average price for prestige skincare products is 503 RMB ($67 US) and for prestige anti-aging skincare products the average price is 687 RMB ($92 US).

“In China, women are willing to pay a premium for anti-aging skincare products and we are watching this category very carefully because we see it as the driver of the prestige beauty industry here,” said Edward Wang, manager of China beauty, The NPD Group Inc Whitening products are the second most popular skincare product in China, making up about 17 percent of skincare sales.

“Whitening products are next on our list of products to watch in China's beauty sector. The use of whitening products starts at a very young age in China and continues through adulthood.

This is a product that is more popular in Asia and we see this trend continuing to grow and gain strength in the coming years,” said Wang.

For the first time, NPD is able to track the trends in the prestige beauty industry in China with the launch of NPD's new, point-of-sale (POS) tracking service which tracks products sold in department stores.

It complements NPD's existing portfolio of services tracking the beauty industry in the U.S., Italy, and France.

As a category, makeup is an emerging market in China. Sales of makeup were up 17% in the second quarter vs. the first quarter.

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