Comprehensive information service provider The NPD Group reports prestige fragrances have the greatest penetration in china's department stores.
The beauty sector is flourishing in China, according to leading marketing information provider The NPD Group. A new NPD report, Prestige Beauty in China, reveals that 98 percent of China's department stores carry at least one prestige fragrance brand. All the major international beauty manufacturers are present in this growing market; however, distribution varies widely by geography and size of store.
Other findings from the report: Fragrance is the most widely-distributed beauty category in China's department stores, followed by skincare at over 90 percent penetration and makeup at 70 percent penetration. In terms of dollar revenue, skincare leads with the highest dollar sales, followed by makeup and fragrances.
Across the eight cities analyzed, Chinese department stores carry 13 skincare brands on average.
In all the beauty categories NPD tracks (Makeup, Skincare and Fragrance), the top two brands in terms of distribution across eight Chinese cities studied are of Japanese origin. The Northern cities studied were found to carry the highest number of prestige brands by area. Sales of specific brands vary widely by geography.
In April 2005, NPD conducted a census of the prestige beauty market and identified 120 department stores across eight cities in China. The cities were selected from the three main regions in China: North, Central and South. These Chinese regions have a total of 72 million inhabitants. The objective was to evaluate the department store landscape and the availability of reliable sales data.
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