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