Skincare and cosmetic products market in Hong Kong

The largest product categories are:

• facial moisturisers
• anti-aging products
• makeup foundation
• lipsticks and eye makeup.

Facial care was the largest category in the skincare market (85 percent share) followed by body products and suncare (6 percent each).

The total value of imports for cosmetics and skincare products dropped slightly in 2009 after a decade of steady increases. The expected market growth for 2007-2012 is estimated to be 6 percent.

Shopping is an important activity for mainland Chinese tourists visiting Hong Kong and cosmetic and skincare products are among their top three shopping purchases.

Research shows consumers are turning to premium brands and products made from natural ingredients.

Products in high demand include:

• anti-aging products
• high UV protection/sun block lotion with skin lightening
• body firming lotions
• bath toiletries with natural ingredients
• aromatherapy products with natural ingredients
• nail polish and lipsticks
• skin lightening products.

Men currently account for less than 10 percent of the total expenditure on skincare.

Getting your product into market

Cosmetics and skincare products are sold through a variety of retail outlets. Speciality retailers dominate with a 42 percent share followed by supermarkets (19 percent) and department stores (17 percent).

There is currently a trend towards concept stores   brand-specific beauty salons and spas designed to emphasise the experience of premium products.

Market positioning can call for a flexible approach if entering the market for the long term. Pricing commonly means New Zealand brands are in the medium to high levels where competition with established brands is strong.

Flexibility on terms such as minimum order sizes and introductory offers can help new distinctive products get onto the shelves and become accepted on their merits.

Manufacturers are highly recommended to obtain certification from authorised certifiers such as GMP, AgriQuality or ECOCERT to enhance product credibility.

Regulations

There are no strict regulations on imported cosmetics and skincare products.

No import licence is required.

There are also no customs tariffs on goods imported into or exported from Hong Kong.

All pharmaceuticals, cosmetics and skincare products have to list (in English and Chinese) the contents on the outer package of the product. Brand names, weight etc must also be listed.

Opportunities

• New Zealand is known for natural, agricultural-based products such as lanolin. This suggests value can be gained from association with New Zealand’s broader image as having a green and natural environment.

Challenges

• New Zealand does not have a strong image as a source of skincare or cosmetic products.
• Consumers increasingly expect assurance through product certification, especially for new or unfamiliar products. 

Download the full Market Profile for Skincare and Cosmetic Products in Hong Kong for more detail, including key contacts and useful websites.