2022 CHINA SUPPLEMENTS TRENDS - | TRACKER-DRIVEN ECOMMERCE & CONSUMER INSIGHTS - ChinaSkinny Trackers

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2022 CHINA SUPPLEMENTS TRENDS - | TRACKER-DRIVEN ECOMMERCE & CONSUMER INSIGHTS - ChinaSkinny Trackers
2022 CHINA SUPPLEMENTS TRENDS
| TRACKER-DRIVEN ECOMMERCE & CONSUMER INSIGHTS
2022 CHINA SUPPLEMENTS TRENDS - | TRACKER-DRIVEN ECOMMERCE & CONSUMER INSIGHTS - ChinaSkinny Trackers
I n t ro du c t i o n
China Skinny’s Supplements Tracker has been in operation since January 2021 with a full year’s
worth of data and four cycles of consumer surveys completed. The insights in this report are
taken directly from the tracker with some broader, supporting data from external sources.

Health supplements continues to be an important category following the outbreak of COVID-19,
however the top product categories are more aesthetic-oriented (weight loss and collagen
supplements respectively).

Foreign market share and prices have increased in 2021, alongside healthy lifestyle and
exercise-oriented claims. Domestic players have a greater focus on curative products such as
weight loss, while foreign players offer more holistic ranges and healthy lifestyle-oriented
products. There is a clear trend of diversification and cross-category expansion in the
supplements sector that is spurring the growth of more specific products and more multi-
purpose products, respectively.

To assist, we have developed an investigative tool dubbed the ‘Supplements Tracker’ which
allows anyone to have a live, unhindered view into how China’s supplements habits are evolving
with ecommerce and consumer survey data. To gain access, please visit the website or get in
touch at datatracker@chinaskinny.com.
2022 CHINA SUPPLEMENTS TRENDS - | TRACKER-DRIVEN ECOMMERCE & CONSUMER INSIGHTS - ChinaSkinny Trackers
Supplements Market Growth Remains Strong
   Growth is strong yet slowing, likely driven by the increased traction of health trends & diversification of product offerings.
                                                                                                         20.0%
                                                                                                ¥328.2
                                                                                                                   The China Skinny Supplements Tracker concentrates on ecommerce
                                                                                       ¥298.9            18.0%     sales but we maintain a clear view of how that fits in to the broader
                                                                              ¥270.8                     16.0%
                                                                                                                  picture, how consumer behaviour differs for different products, as well
                                                                     ¥250.3                                              as how channels are trending in our subscriber support.
                                                                                                         14.0%
                                                            ¥222.7
                                                                                                                  Growth of the supplements category remains relatively strong, even in
                                                                                                         12.0%
                                                   ¥188.0                                                           the face of COVID or perhaps in part due to COVID. The largest two
                                          ¥161.4                                                         10.0%    categories however are not solely health products, but more aesthetic
                                 ¥144.6                                                                                                       supplements.
                        ¥128.2                                                                           8.0%
               ¥114.4                                                                                                        Carnitine | 6%
       ¥99.3
                                                                                                         6.0%                                                       21% | Weight Loss
                                                                                                                          Maca | 7%
                                                                                                         4.0%

                                                                                                         2.0%        Fish Oil | 9%

                                                                                                         0.0%                                    2021
      2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023                                                                                    Market Share
                                                                                                                    General | 9%
                                 Market Value (CNY bn)                Growth                                                                                              19% | Collagen

               Overall Market Value and Growth (2013-2021)                                                  Weight / Muscle Gain | 10%

                                                                                                                                      Vitamin C | 16%
Sources: iiMedia Research, China Skinny, Tmall
2022 CHINA SUPPLEMENTS TRENDS - | TRACKER-DRIVEN ECOMMERCE & CONSUMER INSIGHTS - ChinaSkinny Trackers
Market Share Converging Whereas Prices Diverging
   Foreign brands increase market share and value relative to domestic brands, indicating a shift towards foreign offerings.

                             Domestic vs. Foreign Market Share & Sales (Jan – Dec 2021)                                               Weighted Average Price (Jan – Dec 2021)
                   80%                                                                                         ¥600

                                                                                           Singles’ Day
                                                                                                                                                                   ¥392            ¥390

                   70%                                                                                         ¥500                                                                                      ¥342
                                Chinese New Year

                                                                                                                                                                           ¥336           ¥330

                   60%                                                                                         ¥400   ¥276                                                                       ¥284
                                                                                                                                    ¥270   ¥271             ¥265
                                                                                                                             ¥253
    Market Share

                                                                                                                                                   ¥229
                   50%                                                                                         ¥300

                                                                                                                                           ¥200                    ¥202
                                                                                                                      ¥187          ¥186
                   40%                                                                                         ¥200                                         ¥172
                                                                                                                             ¥165
                                                                                                                                                   ¥148
                                                                                                                                                                                          ¥128   ¥122
                                                                                                                                                                           ¥113    ¥109                  ¥108
                   30%                                                                                         ¥100

                   20%                                                                                         ¥0
                         Jan-21 Feb-21 Mar-21 Apr-21 May-21 Jun-21 Jul-21 Aug-21 Sep-21 Oct-21 Nov-21 Dec-21          Jan-21 Feb-21 Mar-21 Apr-21 May-21 Jun-21 Jul-21 Aug-21 Sep-21 Oct-21 Nov-21 Dec-21

                                                   Dom Rev   For Rev   Domestic      Foreign                                   Domestic           Foreign          Linear (Domestic)        Linear (Foreign)

     2021 saw foreign brands close the gap quite dramatically in terms of market share, from a massive 40% gap to just 2% as of December 2021. At the same
    time the weighted average price (the prices consumers are actually paying) for foreign brands has increased markedly while the weighted average price for
    domestic brands has decreased. This indicates that consumers are willing to pay more money for foreign products, seeing more value in those offerings, but
                                                                    what are those offerings?
Sources: China Skinny, Tmall
2022 CHINA SUPPLEMENTS TRENDS - | TRACKER-DRIVEN ECOMMERCE & CONSUMER INSIGHTS - ChinaSkinny Trackers
Key Category Growth & Stagnation
   Collagen and Fish Oil show consistent growth, while Weight Loss supplements appear to be slipping, even around Singles’ Day.

                                                          Category Monthly Sales (Jan – Dec 2021)                                                                      Collagen & Fish Oil Growing

                                                                                                                                                             Oral collagen products are relatively new to the
                                                                                                                                                           market and have continued to soar in growth. With
                                   Chinese New Year

                   ¥200
                                                                                                                                                         top brands such as BY-HEALTH throwing huge amounts
                                                                                                                                                           of marketing and KOL campaigns at these products,
                                                                                                                                                         they are showing strong sales. BY-HEALTH’s top-selling
                   ¥150
                                                                                                                                                           product is a Collagen Gummy (Rose flavoured) see
                                                                                                                                                                         page 11 for case study.
    Market Share

                                                                                                                                                         Fish oil is experiencing all sorts of growth, from fitness
                                                                                                                                                          KOLs promoting its post-workout benefits, to others
                   ¥100
                                                                                                                                                              promoting its stress relief properties and pet
                                                                                                                                                         enthusiast extolling is=ts benefits to their pets' coats.
                                                                                                                                                                        See page 13 for case study.
                    ¥50
                                                                                                                                                                   Weight Loss Falling Out of Fashion?

                                                                                                                                 Singles’ Day
                                                                                                                                                           Weight loss remains a top category, however it has
                                                                                                                                                          begun to falter recently with more and more young
                    ¥0
                          Jan-21   Feb-21             Mar-21   Apr-21   May-21   Jun-21     Jul-21   Aug-21    Sep-21   Oct-21   Nov-21         Dec-21     people turning to healthy lifestyles and prevention,
                                                                                                                                                         rather than weight loss cures. This has also been seen
                                                                  Collagen       Fish Oil        Weight Loss
                                                                                                                                                         in claims, distinguishing domestic and foreign brands.
Sources: China Skinny, Tmall
2022 CHINA SUPPLEMENTS TRENDS - | TRACKER-DRIVEN ECOMMERCE & CONSUMER INSIGHTS - ChinaSkinny Trackers
Domestic & Foreign Claims Differ on Focus
   Domestic brands concentrate on the problem, while foreign brands focus on the healthy lifestyle.

                              Skin Care Important for Both Sides                                             Top Selling Claims of 2021

   Collagen has become a huge category in China and oral supplements for skincare                   Domestic                               Foreign
   remain important sources of revenue for both domestic and foreign brands. The
                                                                                         1st       Weight loss                     Muscle / weight gain
                     key difference lies in weight and lifestyle.
                                                                                         2nd      Oil expulsion                     Collagen peptides
                        Foreign Brands Have a Head Start … For Now
                                                                                         3rd        Burn fat                              Exercise
      The table to the right clearly shows domestic brands focusing on weight loss       4th         Orlistat                        Original import
    related claims, appetite suppression and fat burning particularly in the belly and
     legs, while foreign brands are focusing on exercise and lifestyle related claims.   5th    Collagen peptides                          Whey
                                                                                         6th       Vitamin C                              Vitamin C
    This is reflected in the fact that healthy lifestyle trends have been around much
     longer globally, while China has faced an acute obesity problem post-80s and        7th        Enzymes                           Nourishment
     health trends really only gaining traction in the past few years, thus products     8th          Belly                          Hyaluronic acid
                                       remain curative.
                                                                                         9th        Appetite                                DHA
   This helps to explain the increased market share of foreign brands which tends to     10th         Legs                                  Brain
   emphasize the health trend or preventative manner of the product. This trend is
     particularly noticeable in younger generations where there is more emphasis
                            placed on one’s health and body.                                                        Claim types:
                                                                                                              Function / Ailment
                                                                                                                     Ingredients
                                                                                                                     Target Area
Sources: Euromonitor, China Skinny, Tmall
2022 CHINA SUPPLEMENTS TRENDS - | TRACKER-DRIVEN ECOMMERCE & CONSUMER INSIGHTS - ChinaSkinny Trackers
CASE STUDIES INSPIRED BY THE TRACKER
2022 CHINA SUPPLEMENTS TRENDS - | TRACKER-DRIVEN ECOMMERCE & CONSUMER INSIGHTS - ChinaSkinny Trackers
Weight Loss Products Looking to Enzymes
While orlistat remains the highest selling ingredient, enzymes are a keyword that is catching on with consumers.
                                                                                                                             The topic in
                                                                                                                            Weibo has 1.3
                     GUIDED BY THE TRACKER                                                                                   billion views
                                                                                  Lay Flat to Lose Weight
                     Market share and performance has increased
                     throughout 2021, indicating this claim is                    In Apr 2020, Tmall opened the “lay
                     gaining more traction.                                       flat to lose weight” (躺瘦正当红)
                                                                                  event, combining various weight loss
                                                                                  products & trying to introduce a ‘lazy’
Enzyme Products                                                                   dietary weight loss style.

As an ingredient of weight loss supplements, enzymes are growing                  Lay flat weight loss contradicts the
in popularity. Although some consumers are dubious about its                      common notion of “Exercise + Diet”,
function, most believe it is gentle on the body and a good choice for             but it is embraced by many young
those who are looking for an easy fix. There are various types of                 people eager for a quick fix. In order
enzyme products on Taobao and Tmall, such as power drinks,                        to slim down without exercise and
candy, jellies etc.                                                               diet, many are seeking supplements
                                                                                  like enzymes.
According to our tracker, the sales revenue of enzymes in weight
loss raked in over ¥200 million in 2021. Although it is still second              Bio-E, for example, have a lot of
to orlistat, it is becoming a strong competitor.                                  products citing this concept. They
                                                                                  have enzyme drinks and bites which
                                                                                  claim to “reduce fat absorption” or
                                                                                  night enzyme pills which help
                                                                                  “accelerate fat burning”.

   Enzyme Drink         Enzyme Candy              Enzyme Jelly
2022 CHINA SUPPLEMENTS TRENDS - | TRACKER-DRIVEN ECOMMERCE & CONSUMER INSIGHTS - ChinaSkinny Trackers
Sophisticated Enzymes
Cross-category exposure led brands like U卡 (UNICALORIE) to compete in both spaces.

                     GUIDED BY TRACKER

                     Unicalorie is the top-selling enzyme product on Tmall as of
                     January 2022.

UNICALORIE’s Success

The top UNICALORIE product featured here is selling 50,000 units
per month, as of January 2022, yielding a monthly revenue of ¥3.5
million.

The product itself is described as a “pocket regime” with four
distinct jelly products characterized by:
   1. Natural enzymes (tea),
   2. Vitamins (lemon),
   3. Probiotics (honey), and
   4. Collagen (blueberry)

Despite being a relatively small and humble product, the brand and
product packaging is extremely sleek and sophisticated. The brand
was launched largely in the snack category; thus, it benefits from
cross-category exposure, particularly through snack KOLs.
Competing in both spaces results in a highly sophisticated product.
They target largely younger consumers which is reflected in their
strong performance on RED.
2022 CHINA SUPPLEMENTS TRENDS - | TRACKER-DRIVEN ECOMMERCE & CONSUMER INSIGHTS - ChinaSkinny Trackers
Social Engagement is Vital
Flooding social media channels remains a successful sales strategy.

                     GUIDED BY TRACKER

                     Swisse is the highest performing foreign brand on Tmall with sales
                     coming through their flagship store and Tmall Global Supermarket,
                     however what drives these sales?

OUT-PERFORMS THE COMPETITION                         KOL USAGE

Swisse blows all other supplements brands out        Dilraba is a Chinese film and
of the water when it comes to social media           television actress and singer from
engagement.                                          Xinjiang who graduated from the
                                                     Shanghai Theatre Academy.
Of course, a wide range of products and broad
consumer base helps, however if we look at           Dilraba fits the image of the target
Little Red Book (RED) alone, Swisse has 3            segment Swisse is aiming for. These
times as many posts and almost 4 times as            young stars have a lot of cultural
many fans as its closest competitor, which is a      sway with their audience appearing
domestic brand 汤臣倍健 (BY-HEALTH).                     across all media formats in China.

This is a reflection of frequent posts,              She is also a solid choice for her
livestreams and integrated marketing which           philanthropic donations and
creates an engaging brand experience. Swisse         participation in various government
also concentrate on video content, whether           initiatives; she is unlikely to cause
that be livestreams on RED, Douyin content or        controversy or ‘disappear’ any time
other short video content.                           soon.
KOL Selection Key to Effective Targeting
On-trend, localised campaigns continue to drive domestic brand success.

                     GUIDED BY TRACKER

                     BY-HEALTH is the top domestic brand, while a look
                     into their flagship store on Tmall shows their top-
                     selling product is a collagen (a fast-growing category)
                     gummy from sub-brand Yep.

BY-HEALTH’S YEP CAMPAIGN

By-Health’s sub-brand Yep is targetted towards younger more sophisticated
consumers and this is reflected in their choice of KOLs.

Cai Xukun is a male singer, producer, director and actor from Zhejiang. Born in the
late 90s, he was awarded most influential singer-songwriter of 2021 at the Tencent
Music Entertainment Awards. As a big name amongst younger consumers in
particular, Cai Xukun was a no-brainer as the principal ambassador for the Yep
brand.

Gu Ailing is a Chinese female freestyle skier who was actually born in San
Fransisco, USA; her English name being Eileen Feng Gu. Gu Ailing resonates with
many young Chinese for her international sophistication and sporty nature. As a
high achiever across sport and academia (accepted to Stanford) she is a role
model for many. Her endorsement also allows Yep to capitalize on the hype of the
Winter Olympics.

While not all brands can afford high-profile KOLs, Yep’s success highlights the
importance of selecting the right KOLs for your brand and product.
Vitamin C Diversifying into Gut Health
A top-selling category that has matured and is looking to diversify into cross-functional products.

                     GUIDED BY TRACKER                                                                                        Highly Targeted to Younger
                                                                          Vitamin C + Manuka Honey is a dual                  Consumers
                                                                        ingredient to protect your stomach and
                     Vitamin C is traditionally very popular and                    reduce belly fat

                     regarded as good for energy and immunity.                                                                The stress of work and study is
                     It is considered a daily supplement, so it is                                                            plaguing consumers in China, poor
                     always a top seller as far as supplements                                                                health is now common. Young
                     are concerned.                                                                                           consumers purchase supplements
                                                                                                                              to improve a limited diet, as well as
                                                                                                                              mitigate problems of a night out        My stomach’s a bit off
Gastro - Vitamin C                                                                                                            (food and alcohol).

Vitamin C is used to reduce the duration and                         Helps clear out free radicals Bad bacteria “scavenger”
                                                                                                                              • Social Media Active
severity of cold symptoms. In China, it is                                                                                    On social media, Swisse products
also a famous whitening ingredient for many                                                                                   resonate with young people.
                                                                     Supports gastrointestinal   Protects gastrointestinal
                                                                                                                                                                        Swisse product video Tmall
beauty products. However, Swisse is giving                           health                      membrane                     Students hope “memory tablets”
it a new title – the Gastrointestinal protector.                                                                              will help them with exams; white-
                                                                                                                              collars need “Liver protective
The Vitamin C + Manuka Honey Chewable tablet is proving                                                                       tablets” to mitigate unhealthy
popular on Tmall. The product combines Chinese consumer                                                                       lifestyles, and young consumers
eating habits, claiming the product can protect the stomach and                                                               need Vitamin C with Mānuka
intestines, essentially a VC product aiding digestion.                                                                        Honey after hot pot and drinking.

A lot of vitamin consumers maintain unhealthy eating habits, for                                                              • Easy to take
instance, irregular diet during the workday and overeating during                                                             The chewable tablets and honey
holidays or business/social meetings (culinary and particularly                                                               flavour make it easy to take. Many
alcohol peer pressure is common). Swisse is targeting this group                                                              consumers say they’re willing to
who needs vitamins and has gastrointestinal problems.                                                                         carry chewable tablets with them
                                                                                                                              to take anywhere, anytime.
Fish Oil Expanding Across Segments & Even Species
Some brands are looking to address key pain points of specific consumer segments, and pets are even included.

                    GUIDED BY TRACKER                                                                                Pets Treated Like People

                    Fish Oil accounts for almost 10% of the market                                             The increasing importance of
                    and has begun diversifying into different                                                       pets is a cross category
                    segments, leveraging different benefits for                                              phenomenon that has exploded
                    various segments, from students, to females,              Fish Oil Family                                in recent years.
                    the elderly etc..                                   Meets needs of multiple segments
                                                                                                               Even in fish oil, a basic search
Blackmores Localizing Their Messaging                                          Daily basic fish oil
                                                                                                               for it yields numerous posts of
                                                                                                                    how good fish oil products
Blackmores has been in China since 2012 and in recent years has                                                  (designed for people) are for
really begun to localize product offerings based on specific Chinese                                          your pet’s coat, skin, teeth etc.
needs and target segments. While the product range is not localized,
the marketing is. Blackmores uses their range of fish oil products to                                             With brands diversifying into
address local pain points in China. Compared to other brands,                                                various consumer segments, it’s
Blackmores have more specific segments: students, athletes,                                                    worth investigating whether or
                                                                               Enhanced fish oil
women etc..                                                                                                  not a pet variant is so much of a
                                                                                                               stretch. Especially considering
Beyond the basic fish oil range, Blackmores also offers:                                                            pet owners want products
                                                                                                              created to the same standards
• Super strength fish oil – higher concentration, relieves symptoms                                                              as for people.
  of mild arthritis, anti-inflammatory (elderly and athletes)
• Omega brain – high DHA, supports brain and eye function                                                  “The bottle is very convenient to
  (students)                                                                                               carry on with me. The ingredients
• Evening primrose oil + fish oil – supports skin health, relieves                                         are made and suitable for
  inflammation, aids period pain (women)                                                                   females.”
• Vegan omega-3 oil – double care inside and out (vegan)
                                                                                                           — buyer from JD.com
Weight / Muscle Gainers – Demand for Foreign High
The shift to healthy lifestyles has brought with it a desire for
fitness supplements.

                     GUIDED BY TRACKER

                     Our tracker shows that weight/muscle gainer has taken a              Local Social Challenges
                     large market share, after weight loss, collagen and Vitamin
                     C. The tracker indicates Muscletech as a consistent high       Luo Yonghao, followed by tens
                     performer.                                                        of millions of fans on Weibo
                                                                                         with a strong sales ability,
                                                                                     cooperates with Xiwang Food
MUSCLETECH’S SUCCESS IN THE CHINESE MARKET                                          and Muscletech in early 2022.

As the top performing brand in America, Muscletech officially landed in China in    His topic # Luo Yonghao Asks
2009. After being acquired by China’s Xiwang Food company in 2016, it began             You to Set a Goal for Your
to lay out a new brand marketing strategy.                                          Health trended on Weibo and
                                                                                      has been viewed more than
Online + Offline Sales Channels:                                                                 300 million times.
In addition to developing online channels such as JD.com and Tmall, it also
expanded to offline gyms. For example, relying on the nationwide sales network
of Xiwang Food company, Muscletech cooperated with Weider Tera, which has
more than 100 gyms across the country, to promote products. Muscletech has
also invited professional figures and fitness KOLs to drive sales and education.

Ensure Products’ Quality:
Due to the concern that the brand reputation will be affected by food safety
issues, and because many gym goers tend to buy foreign brands, Muscletech
continues to utilize production lines in North America to ensure product quality.
This indicates that the demand for foreign quality remains dominant, so much
so a domestic company will preserve its foreign origin.
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The outputs service brands’ needs we’ve identified from over a decade of
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The tool provides insights to help direct areas such as:
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✓ Price Optimization                       Behaviour
✓ Discount Equilibriums                  ✓ Historic Trends and Behaviour
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✓ Origin Sentiment                         and Ingredients
                                         ✓ And more…

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