Hair care business embracing new trends

Premium products and increased adoption of the skin care approach toward scalp care have become the noticeable trends in the hair wash and care market in China in recent years, a senior executive said.

"Women customers in China, especially those who go to salons regularly, are looking at premium products with better quality these days," said David Tung, regional president of Henkel Consumer Brands Asia.

According to a report released by Chinese e-commerce company JD last year, online sales of high-end shampoos priced 120 yuan ($16.7) or more grew 114 percent, becoming the main driver of higher online sales of shampoos.

"Chinese consumers now tend to use ingredients commonly used for the face to achieve an enhanced scalp care effect," said Tung.

Frank Meyer, corporate senior vice-president, R&D, of Henkel Consumer Brands, said scalp care is unique to the Asian market. "Asians are highly concerned about scalp care, which they believe promotes healthy hair," he said.

To better cater to Chinese consumers' needs, the German company, which owns brands such as Schwarzkopf and Syoss, opened the Henkel Consumer Brands Asia R&D Center, the largest R&D facility for its consumer brands in the region, in Shanghai last week.

"China is undoubtedly a highly significant market in our Asia business, currently contributing over half of the market share in the region. This makes the establishment of the R&D center here at this time crucial for us," Tung said.

According to global market observer Euromonitor International, the market for hair wash and care products in China grew at a compound annual growth rate of 6.7 percent from 2019 to 2023, and is expected to be worth 131.2 billion yuan in 2023. Foreign brands accounted for the most sales among those with the highest sales value.

With an investment of about 100 million yuan, the new R&D center aims to attract top scientific talent and strengthen the company's local R&D capabilities in the business categories of hair, laundry and home care. It covers an area of more than 2,500 square meters.

Based on consumer habits and insights across 11 markets in Asia, the center also aims to facilitate flexible product innovation and further bring the company's consumer products to the forefront of the industry.

Yang Jufang, an official of the Investment Service and Development Center of Shanghai's Yangpu district, where the R&D center is located, said the project will further promote the company's localization-driven innovation.

"We also believe that other Yangpu-based enterprises, especially popular local internet brands such as Xiaohongshu and Meituan, will bring insights into the digital development of Henkel consumer brands and create win-win effects," she added.

zhouwenting@chinadaily.com.cn