Market research firm Euromonitor has released its latest report on beauty and personal care in Hong Kong, which reveals that the industry has seen steep decline in its growth within the country over the past year.
The main factor behind this drop has been the reduction of tourism and related spending on beauty by visitors from Mainland China, the firm explains, stating that this had a “major negative impact” on the market.
“The image of Hong Kong as a shopping paradise has diminished in recent years, with many Mainland Chinese seeing Hong Kong as a place of political instability”, Euromonitor analysts explain.
The brands that are performing well are those which meet local demand for mass products, along with smaller, more niche brands and international players.
Hong Kong consumers are particularly enthusiastic for Japanese, Western, and Korean beauty products, according to the report, which notes that well-established product lines tend to be the most trusted.
(Source: Cosmetics Design Asia)