Key Points of This Article

1. Rise of the Men’s Beauty Market: With the surge in e-commerce and localization trends, the men’s beauty and skincare market is gaining increasing attention. While the women’s market is highly competitive, the men’s market is emerging. Men’s skincare and beauty needs have expanded from basic cleansing to advanced skincare and basic makeup, leading to rapid market growth.

2. Potential Growth in Men’s BB Cream Market: The men’s basic makeup market, with men’s BB cream as a representative product, has significant growth potential. By comparing pricing differences between men’s and women’s cleansing and BB cream products, we believe that there is a 20% to 30% potential price increase in men’s BB creams. Currently, men’s BB cream has low penetration, high concentration, and low pricing, indicating an opportunity in the mid-to-high price segment.

3. Unmet Demand in the Men’s BB Cream Market: Users are not satisfied with the experience of top men’s BB cream products, particularly in terms of whitening and cakey appearance. Optimizing product performance to meet user expectations will be crucial in attracting users.

The Rise of the Men’s Beauty and Skincare Industry, Leading the Industry by 27 Percentage Points

Since the rise of e-commerce and the trend of localization in the cosmetics industry, the women’s market has been the main battlefield for mainstream beauty and skincare brands. However, in recent years, the competition in the women’s beauty and skincare market has intensified. Perfect Diary, for example, has captured the mid-to-low-end market through low prices and promotional strategies. Following that, Flower Knows, with a massive fan base backed by Li Jiaqi, has established itself in the high-priced market with its Chinese-style design. Recently, Caitang has emerged as a strong contender in the female beauty and skincare market on Little Red Book. To compete with these brands head-on, newcomers require exceptional operational and financing capabilities.

In addition, the beauty ideals of young men from the internet generation have undergone significant changes. Men’s demand for beauty and skincare products has evolved from “cleansing” to “advanced skincare” (typical categories include “facial serums”) and “basic makeup” (typical categories include “men’s BB cream”). Data shows rapid growth in beauty and skincare categories for men. As seen in the chart below, since 2017, the growth rate of men’s skincare products has gradually outpaced that of the overall cosmetics industry in China, with a projected 27 percentage point difference by 2023.

In summary, under the dual influence of intensified competition in the women’s beauty and skincare market and changing beauty ideals among men, the men’s beauty and skincare market is becoming a new growth point for many brands.

The Men’s Beauty and Skincare Market, Represented by Men’s BB Cream, Offers Approximately Threefold Growth Potential

Based on the refinement and advancement of demand, the men’s beauty and skincare industry can be roughly divided into five stages: cleansing, basic skincare, advanced skincare, basic makeup, and advanced makeup.

• Cleansing: This includes categories such as facial cleansers, shampoos, and body wash.
• Basic Skincare: This includes skincare sets, facial creams, face masks, toners, sunscreens, mists, and shaving gels, among others.
• Advanced Skincare: This includes facial serums, eye creams, and more.
• Basic Makeup: This includes BB creams, perfumes/colognes, concealers, styling products, and more.
• Advanced Makeup: This includes lipsticks, eyeshadows, contouring products, makeup removers, and more.

Based on data from TikTok channels, transaction volumes in the men’s beauty and skincare market are still concentrated in the more basic stages of “cleansing” and “basic skincare.” However, when combining data from the domestic and international beauty markets, it is estimated that there is still approximately threefold growth potential in men’s basic makeup:

• The table below shows the number of paying customers for the top 200 products in the categories of cleansing and BB cream. The ratio of transaction volumes between the two reflects the penetration rate of BB cream. It is evident that the penetration rate of BB cream among female beauty and skincare users is 20.1%, while among male beauty and skincare users, it is only 7.9%. Compared to the Chinese female market, the Chinese male basic makeup market still has approximately threefold growth potential.
• According to a report from the Korean Food and Drug Administration in March 2019, 36.7% of Korean men use face masks, and 19.4% use BB cream. Young Korean men aged 20-29 use an average of 15 different types of cosmetics per month. Compared to the Korean male market, the Chinese male basic makeup market also has approximately threefold growth potential.

Potential Market Opportunities in the Mid-to-High Price Segment for Men’s BB Cream

Further analysis of pricing for cleansing and BB cream products reveals that there is a nearly 11% price difference between men’s and women’s cleansing products (median prices: 53 RMB for men and 59 RMB for women). However, the price difference for BB cream products is significantly higher, at 51% (60 RMB for men and 91 RMB for women).

The differences between men’s and women’s BB creams mainly lie in the following aspects:

1. Women’s BB creams come with more accessories, including BB cream cases, cushions, and mirrors.
2. Women’s BB creams have more complex functions. In addition to the coverage and oil control functions of men’s BB creams, they also include moisturizing, sunscreen, isolation, and long-lasting effects.

The additional accessories and increased complexity of women’s BB creams to some extent contribute to their higher costs, subsequently leading to higher prices. However, it is estimated that the cost increase due to accessories and additional functions is only about 5 to 10 RMB (approximately 3 to 10 RMB for accessories and 2 to 3 RMB for additional functions). Even considering the cost increase resulting from accessories and increased functionality, women’s BB creams are still priced 30% to 40% higher than men’s BB creams.

Taking into account the pricing difference in basic cleansing products between men and women, we believe there is a 20% to 30% potential price increase in men’s BB creams, and businesses that can better meet user demands in the

future are likely to capture this market segment.

Unmet Demand in the Men’s BB Cream Market

Some negative reviews of a leading men’s BB cream product highlight user dissatisfaction and experience issues during usage. Consumers generally feel that the product’s effects are not as described in advertisements and promotions, leading to issues like whitening, cakey appearance, and an unnatural look. Many users point out that the product’s coverage is poor and does not effectively conceal blemishes and spots, resulting in an unnatural appearance. Additionally, some consumers complain about the product’s lack of long-lastingness, as it tends to smudge and become oily shortly after application, failing to meet their expectations.

Among these issues, “not causing whitening” and “even coverage without caking” are the most frequently mentioned demands. New brands entering the market can focus on optimizing their products in these two areas to meet user expectations.

1. Not Causing Whitening

2. Even Coverage Without Caking

Estimation of BB Cream Costs

As mentioned earlier, the cost increase for accessories in women’s BB creams is estimated to be around 3 to 10 RMB, and the cost increase for additional functions is estimated to be around 2 to 3 RMB.

1. The wholesale prices of BB cream accessories (cases, cushions, mirrors) on 1688.com are approximately 3 to 10 RMB. We can consider this as the cost increase for accessories in women’s BB creams.
2. Similarly, BB creams with claims of sunscreen, moisturization, and other functions have a wholesale price increase of about 2 to 3 RMB.