Foreign Shampoo Brands Stage a "Great Counteroffensive"
Following the launch of several new brands such as Jing Shi (Pechoin), Ji Mu (Furuida), Mo Fa (Mofashijia), and Han De Shi (Juzi Bio) by domestic groups in the personal care market in 2024, foreign-owned beauty and personal care groups have also begun to focus their efforts on a "counterattack" in the Chinese personal care market in the second half of this year.
According to statistics from "FBeauty Future Trace," L'Oréal, Procter & Gamble, Unilever, Amorepacific, and Henkel, among other foreign-owned groups, have launched a total of 22 new products/series under 14 brands this year, with the majority being introduced in the second half of the year.
Especially at the 7th China International Import Expo held in early November, brands such as L'Oréal's PUREOLOGY, Vichy, P&G's Pantene, and Amorepacific's Yue, all brought new products with advanced ingredients and technology, adding more intensity to the competition in the personal care market.
Looking at the online personal care brand rankings for the first 10 months of this year and the Double 11 personal care rankings across various platforms, although foreign brands led by Kérastase still hold the top sales and high-end price segment advantages, the share of domestic personal care brands has been increasing, exerting a strong "sense of pressure" on foreign brands.
Advertisement
So, in the "counteroffensive" of foreign personal care brands against the nearly 70 billion personal care market in 2024 (Euromonitor data), what changes have occurred in their selling points and strategies in the Chinese market? What are the core technological advancements? Based on these changes, can they continue to maintain an advantageous position in the future?
Targeting the three "mountain tops" of the personal care market, 14 major foreign brands have concentrated on launching new products.
According to "FBeauty Future Trace," the new personal care products launched by foreign beauty giants this year are mainly focused on three directions:
Firstly, in the high-end hair care market, where foreign brands already have a significant advantage, they continue to increase their bets through "advanced care," forming a more diversified brand and product portfolio while also raising prices to emphasize their high-end positioning.
L'Oréal Group is a typical example. After launching the new post-dyeing hair care brand PUREOLOGY at the Import Expo, L'Oréal's high-end hair care brand matrix has increased to three: including Paris Kérastase, L'Oréal Pro, and PUREOLOGY. Moreover, according to the price of PUREOLOGY on Boots, the brand's single products are around 200 RMB, and sets are over 600 RMB, positioning it as a professional post-dyeing hair care brand without sulfates.
Kérastase has launched a more high-end product based on its positioning - "Glowing Camellia" essential oil, priced at 250 RMB/30ml - 550 RMB/75ml. Compared to the brand's star hair care essential oils "Ocean Black Diamond" and "Rose Pink Oil," although the price threshold has been lowered by reducing the capacity, the price per milliliter is more expensive, driving the price band to a higher point; Unilever's Lux also introduced a high-end product line - Hair Supply Series at the Import Expo for the Chinese market.
Additionally, it can be observed that a series of high-end hair care brands such as Loreal Pro, Aveda, Fructis, and L'Occitane have launched new products in the "advanced care" category, such as Loreal Pro's "Second Generation Instant Smooth Oil", Aveda's "Pure Fusion Water Infusion Needle Care Essence Oil", Fructis's "Green Scalp Essence", "Spa Luxury Care Series", and L'Occitane's "Vital Oil" products, which are all essence and oil-based, accelerating competition in the oil care race on top of shampoo and conditioner.
The second is to follow the trend of "skin care for hair care," by implementing fine management of scalp care and hair care through ideas such as skin care functional ingredients, gender differentiation, and microecological technology.
For example, Unilever's Dove has added an amino acid system to its newly launched "Golden Bowl" hair mask, while Procter & Gamble's Pantene has added repair ingredient Pro-V B5 to its "Pro-V Vitamin Shimmer Lotion". Amorepacific's Sulwhasoo has launched the "Hwajeongyo Glowing Repairing Hair Mask" with 3-layer micro molecule plant protein from camellia, rose, and rice.
Unilever's scalp care expert, Clear, has proposed the concept of "gender differentiation" in scalp care. The "Clear Men's Active Research Series" provides tailored solutions for dandruff and scalp care for men, who have different scalp conditions and care needs from women; L'Oréal's Vichy has launched a new red-label shampoo, adding a combination of "caffeine" and "ginger root extract" to address scalp health and volumizing needs, with caffeine also being a common ingredient in face creams and eye creams for revitalizing, anti-oxidizing, and brightening.
The third is to focus on popular efficacy selling points in the Chinese personal care market, such as dandruff removal, volume, and repair, and upgrade products from the dimensions of ingredients, formulations, and technology.
P&G launched a new upgraded version of Head & Shoulders "Big White Bottle" series in August this year, penetrating every hair follicle with an exclusive formula system for deep cleaning, truly challenging 360° dandruff removal without blind spots.
Deng Shengle, President of P&G Greater China Hair Care Business and Brand Management, said in an interview with "FBeauty Future Trace," "More than 60 years ago when we developed the world's first anti-dandruff shampoo, scientists found that dandruff is just a manifestation, and the root cause is a problem with the scalp." P&G is committed to solving the root problem of dandruff, which is the scalp, with more specific insights and innovations in scalp care needs.
In the same month, Henkel launched Schwarzkopf's anti-dandruff conditioning shampoo, focusing on solving dandruff problems caused by increased oil secretion, repairing the scalp's micro-ecology from the source, and inhibiting the production of dandruff.
Chen Ling, General Manager of Henkel Consumer Brand Business Retail Channel, pointed out, "With Schwarzkopf's entry into the anti-dandruff track, our scalp line of personal care products will fully cover the five major concerns of 'oil, collapse, dandruff, sensitivity, and hair loss,' combining with our rich hair care products to provide consumers with comprehensive product solutions and excellent experiences."
From the above new products, it can be seen that in the second half of 2024, foreign brands' "counterattack" on the Chinese personal care market mainly focuses on "high-end price bands," "refined personal care," and "efficacy advancement." However, in addition to having an absolute advantage in the high-end market, foreign brands have not proposed more "new" selling points at this stage, but rather follow the personal care needs of Chinese consumers and the efficacy points amplified by Chinese brands, releasing their scientific research reserves through these selling points into the Chinese market.
Core technology drives product innovation
Although the selling points of this wave of foreign personal care brands in the Chinese market are limited in novelty, they still reflect the R&D capabilities behind the brands and their control over market demands.
1. Scalp care technology innovation
In the field of scalp care, the concept of "skincare-style hair care" is becoming more and more popular. This advocacy of using skincare methods to care for the scalp and hair has also prompted major brands to focus on R&D, achieving deep improvement in consumer scalp health through precise formulation and ingredient research.
Vichy, a brand under L'Oréal, is the first brand to integrate dermatology into shampoo R&D, adhering to the concept of "leading scalp health with dermatological science," promoting in-depth cooperation with the dermatological community and experts, and improving scalp health. Vichy's new product this time is based on the above R&D, and in addition to the "ginger coffee" combination, it also includes skincare ingredients such as arginine and niacinamide, effectively improving the scalp environment and enhancing the scalp's self-healing ability.
Head & Shoulders' latest "black technology" - 360° Water Condensation Dandruff Removal Technology, solves the problem that traditional shampoos find it difficult to penetrate the root of hair follicles and stay on the scalp for a long time. It uses an exclusive research and development formula system, allowing dandruff ingredients to penetrate the hair follicles, achieving a lasting dandruff removal effect. At the same time, this technology can also effectively balance the secretion of scalp oil, maintaining a fresh and healthy scalp.
Based on the different scalp environments of men and women, Clear, a scalp care expert under Unilever, has proposed the concept of "gender differentiation" in scalp care. Compared with women, men's scalp is 1.6 times more oily and 1.4 times more fragile. The customized Men's Active Research Series for men's scalp uses SCA oil control and volumizing technology, which not only deeply cleans but also doubles the volumizing effect of hair; it adds skincare-grade ingredients such as niacinamide and ceramides, repairing the fragile scalp barrier from the root and promoting scalp health.
Schwarzkopf's anti-dandruff conditioning shampoo uses the PROCT anti-dandruff and clean source technology. OCT has always been considered a mild anti-dandruff agent by the public, but Schwarzkopf has upgraded OTC to the PRO version, with a high concentration of OTC combined with diglyceryl, which not only removes dandruff but also repairs and stabilizes the scalp, achieving a lasting dandruff removal effect. The combination of salicylic acid and hyaluronic acid doubly regulates the scalp's water and oil balance, moisturizing the scalp while removing oil; the combination of bisabolol and ginger root extract, which are skincare-grade ingredients, soothes the scalp, improves scalp sensitivity, and enhances the scalp's self-healing ability.
2. Scientific breakthroughs in hair quality repair
For consumers' damaged hair quality issues, foreign brands have also provided different answers.
Pantene's Pro-V Vitamin Crystal Essence is a product where Pantene, through nano-ion probe technology, discovered that the vitamin B5 ingredient can penetrate the hair core, reshape the hair core bonds, and based on this, Pantene has developed the repair ingredient Pro-V B5, which is added 30 times in this product and is paired with a watery crystal essence texture, making the product can nourish the hair lightly, improving hair quality from the root.
Dove has been dedicated to ten years of research on "Dove Hair Bionics Technology," and through Unilever laboratory data, it has been proven that this technology ingredient can increase the protein denaturation temperature, making the hair core protein structure more compact. After multiple applications in damaged hair care, the stability of the hair core structure will be restored to better than naturally healthy hair, and the hair will be stronger.
As the only professional color care brand under L'Oréal, Pureology focuses on advanced hair care formulas. Its patented color lock formula, ANTIFADE COMPLEXTM, provides dual care for dyed hair in terms of color and hair quality, caring for the hair while keeping the hair color bright and long-lasting. In addition, 100% plant-based vegan formulas and 0 sulfate formulas are also one of its features, replacing traditional sulfates with plant-derived surfactants to ensure sufficient cleaning without excessive oil removal, combined with sunflower seed VE to resist hot air drying and ultraviolet rays, plus wheat amino acids and soy proteins to nourish and smooth dry and brittle hair quality.
Lux's "Hair Supply" nutrition series uses a unique golden triangle ratio, EX golden ratio compound amino acids + efficient moisturizing factors + 100% squalane combination, promoting hair protein production, efficient water locking, and intensive repair and strengthening of the hair barrier, fundamentally creating healthy hair quality.
The use of these precise formulations and specialized technologies has to some extent achieved the "update and replacement" of product value, and these technologies contain more "special research" gold content for Chinese consumers, also bringing more professional and personalized hair care experiences to consumers.
Competition is intensifying, and foreign brands are seeking breakthroughs in three directions
So, how effective has this "counteroffensive" by foreign personal care in the second half of the year been?
A glimpse can be seen in the sales rankings of the personal care category on major platforms during Double 11: in the Tmall Double 11 personal care total list, L'Oréal's high-end personal care brand Kérastase topped the list, in a leading position, and several other major foreign personal care brands such as Pantene, L'Oréal, Head & Shoulders, Schwarzkopf, and Dove have also made the list. In the Douyin platform's hair care list, foreign brands still have a place, and they almost coincide with the brands that appeared on the Tmall list.
According to data from Magic Mirror Insights, in the Top 20 personal care brand lists of the three major online e-commerce platforms, Taobao, Douyin, and JD.com, from January to October this year, the "absolute advantage" of foreign brands in market share has been gradually broken. Although they still account for more than 76% of GMV shares in traditional shelf e-commerce platforms like Taobao and JD.com, they only account for 35% in interest e-commerce platforms like Douyin, being taken over by "white brands" such as He Xi and 8+minutes for the top position.
In addition, in terms of brand ranking, domestic personal care brands represented by spes, Ziyuan, Tongrentang, Fenghua, off&relax, and Kono have become "regulars" in the e-commerce Top 20 list, gaining more and more market share.
It can be seen that foreign personal care has already felt a strong sense of crisis under the impact of domestic brands.
Looking at the new products launched by these brands, foreign companies' perception of personal care products has long been elevated from basic efficacy to advanced scalp care and hair quality care, and they have successively targeted the Chinese market and Chinese consumers, conducting product research, deeply binding with Chinese consumers, and maintaining the relationship with Chinese consumers. An industry insider said that if foreign brands want to continue to lead in the personal care market and stand invincible in the competition with Chinese brands, they still need to make efforts in the following directions:
First, insight, R&D, and innovation for local needs: Foreign companies need to continue to strengthen their R&D capabilities in China under the premise of strong brand trust, deeply understand the needs and preferences of Chinese consumers, further explore selling points that meet the needs of the Chinese market and then upgrade products.
Second, high-end and differentiation: Foreign brands need to find differentiated competitive advantages in the high-end market and niche markets. By providing high-end, professional products, they fill the gap in the market for high-quality personal care needs. For example, L'Oréal's PUREOLOGY color care series is a precise positioning for high-end post-dyeing needs.
Third, brand story and cultural identity: By telling brand stories and conveying brand values, they further enhance consumers' brand identity, trust, and loyalty. For example, after being acquired by Henkel, Vidal Sassoon made its "debut" at the "70th Anniversary Art Exhibition of Strolling Through Hair" to fully activate the emotional connection between the brand and consumers.
From the above information, it can be seen that the Chinese personal care market is facing a more intense competitive situation - when Chinese brands strive to break through the "siege," foreign big brands with advantages still have to actively respond and accelerate the "roll" in products.