Abstract
Size and Structure of the Chinese Beauty Service Business Market
Aesthetic - Beauty Salon - Institute - Day Spa
April 2007
Annual Market Growth of 15% Reported in the Largest Chinese Salons and Spas
The Chinese professional beauty market is the fastest growing professional
beauty market globally. With annual sector revenues of RMB220 billion in 2006,
it is also one of the largest markets in the world. The larger salons and
spas, which are the best performing, report sales increases of up to 15% per
annum.
It is a fast changing sector and market opportunities abound for cosmetic and
personal care product formulators, beauty equipment suppliers and service
providers. Much of the spa market in Shanghai, Beijing, Guangzhou and other
affluent coastal cities is similar to its counterpart in the US or Europe in
terms of prices paid for haircare and facial treatments, companies and brands
used and quality standards.
A rapid growth rate means a high percentage of salons and spas are new
businesses. With millions of new consumers for appearance enhancement
treatments, the salon and spa sector in China is organising itself to meet new
clients' requirements and to build consumer loyalty. In comparison with other
longer established markets in Europe or the US, there can be a lack of
demarcation between the different providers of hair and skin care, aesthetic
medicine and wellness services in Chinese cities. For example, weight loss,
body contouring and skin whitening treatments can be provided along with a
facial or haircare treatments in the same salon or spa while foot care
services are provided in some fitness clubs.
The professional beauty channel in China includes many types of businesses,
private - or membership based - beauty and hair salons and spas, beauty
clinics located in hospitals and health centres, medspas, fitness and beauty
clubs, nail, massage and tanning salons, dental spas, beauty counters, express
beauty bars, beauty leisure centers and aromatherapy clinics.
The current and potential value of the Chinese hair and beauty market has
generated much discussion and literature including commentary and conflict.
Diagonal Reports consulted Chinese salon and spa experts for their assessment
of the market This new report - China Professional Beauty Market 2007 -
describes the organisation of the sector so that companies can navigate this
market more safely.
The sheer size of the Chinese professional hair and skincare market tends to
blur the vision and, in the rush to take advantage of these opportunities,
some pitfalls can be overlooked. It can be very difficult for companies to
co-relate their business with the actual structure of the Chinese cosmetic and
personal care market, to identify the types of beauty service providers and
potential partners. Given the dimension of this market, it also takes time to
meet with the salon, spa and clinic with actual purchasing power. This report
profiles the largest Chinese salon and spa franchise chains with approximately
12,000 units and millions of members throughout the country.
The sector is highly fragmented with more than 1 million salons, spas and
clubs providing beauty and hair care treatments and services. While estimates
of the actual number of salons vary quite widely, it is clear that salon and
spa franchises account for most sales while hundreds of thousands of salons
and spas share out the remainder.
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