Transformation and Upgrading of Domestic Cosmetics Brands under the Consumption Characteristics of Generation Z: A case study of Huaxizi

Abstract

China's cosmetics industry is booming. Its market recently reached about Rmb500bn, putting it on track to overtake the US. China will become the world's largest cosmetics market in the upcoming future. Generation Z, born between 1995 and 2009, is becoming the major consumer in the cosmetics market. Their consumption tendencies also influence the marketing decisions for cosmetics enterprises. The research on the social consumption structure of the consumer market of the beauty care industry is one of the key topics in the research field. Despite the rapid progress of domestic beauty brands, it is still difficult to compete with international ones with strong reputations. This paper focuses on three main problems of domestic brands, namely dull promotion tactics, product duplication, and illegibility of market orientation. Detailed measures are provided in the suggestion section based on the analysis of the successful cases of Huaxizi. Specifically, it includes three particular solutions that encourage domestic brands to emphasize online marketing, create hot items, and target the younger market.