What's Next for Personalized Cosmetics? Industry Insights and Product Strategies

In the past two years, national data and corporate data have consistently reflected a trend toward personalized consumption in the cosmetics industry. In 2017, the National Bureau of Statistics highlighted three key manifestations of new business formats: first, “enterprise + internet”; second, “product + service innovation”; and third, “service + extension.” The third category refers to the provision of more flexible and efficient personalized services, such as customized fashion consumer goods, cosmetics, and apparel. In 2018, iiMedia Research’s “Special Research Report on New Consumption in China (2018)” indicated that, amid rapid economic development, some consumers began to shift their consumption mindset, favoring spending that fulfills their emotional needs and showing a preference for cost-effective, personalized products.

The trend toward personalized consumption in the cosmetics industry reflects the market dynamics shaped by a combination of economic, cultural, consumer demand, and communication factors. In China, astute cosmetic brands, distributors, and manufacturers have actively engaged in the research, development, production, and promotion of personalized cosmetics, sparking waves of personalization—sometimes harmonious, sometimes conflicting—within the market. While some companies have emerged as true pioneers, many others merely follow the trend, surviving on the leftovers.

2018 has passed, and 2019 has arrived. In the new year, will personalized cosmetics consumption remain as robust as it was in 2018? Who can see through the complex surface of personalized cosmetics consumption to grasp its essence? And who can comprehend and master the true meaning of personalized cosmetics to emerge as the new winner in 2019?

According to data from the National Bureau of Statistics, China’s per capita disposable income has continued to rise, increasing from RMB 8,896 in 2013 to RMB 25,974 in 2017. The middle-income group currently exceeds 300 million people, accounting for roughly more than 30% of the global middle-income population. This demographic possesses substantial income and strong consumption vitality. As living standards improve, the principal contradiction facing Chinese society has evolved into one between the people’s ever-growing needs for a better life and unbalanced and inadequate development. The powerful momentum generated by this shift in the principal social contradiction has impacted various industries, including the cosmetics sector. Within the cosmetics industry, what exactly constitutes “the people’s ever-growing needs for a better life”? The answer to this question holds the key to the major development trends of the cosmetics industry, including the prospects for personalized consumption.

Since the establishment of a market economy following the reform and opening-up, China’s economic and social landscape has undergone three waves of consumption upgrading. The first wave shifted from basic necessities to moderate-prosperity consumption; the second from moderate-prosperity consumption to quality-oriented consumption; and the third from quality-oriented consumption to personalized consumption. Each wave of consumption upgrading represents an innovation built upon the previous one, simultaneously transforming consumer behavior patterns.

Currently, we are entering a new era of consumption characterized by personalized upgrades, with consumer groups across different age brackets exhibiting distinctly different characteristics. Those born in the 1970s are more prone to deferring to authority, more receptive to institutionalized and authoritative discourse, and display a certain degree of blind conformity in their consumption habits. Consumers born in the 1980s have a clear understanding of their desires, possess greater independence of thought, and seek greater respect and a sense of fulfillment. Compared to previous generational cohorts, those born in the 1990s exhibit stronger self-awareness and a preference for taking the lead; they are both capable and more willing to elevate their personal consumption levels, holding higher standards for quality, experience, and novelty. Rather than being guided, they prefer to assume the role of the guide. Distinctive consumption traits have also emerged among consumers of different age groups.

For instance, parents born in the 1980s and 1990s adhere to the principle that “there is no best, only better” when selecting skincare products for infants and young children, demonstrating a strong willingness to spend on their children. Pregnancy does not hinder expectant mothers from the post-90s generation in their pursuit of beauty; by using cosmetics that are natural, safe, and free of toxic side effects, they can maintain both their beauty and a healthy pregnancy. Generation Z, comprising consumers born after 1995, is in a phase of self-exploration. As newcomers to the workforce and heavy internet users, they are trend-conscious early adopters who prioritize cost-effectiveness and aesthetic appeal above all else, with a notable focus on idol-driven and influencer-led consumption. Currently, the consumption demands of the broader post-90s demographic are becoming increasingly mature. As an emerging consumer group, Generation Z’s needs are still evolving. Together, the consumption patterns of these two groups will gradually lead market trends.

Amid the rapid advancement of mobile internet, big data, and artificial intelligence, interactive experiences—spanning both physical and virtual realms—are delivering richer, more multidimensional, and novel consumer experiences. Influenced by aesthetic preferences, educational and cultural backgrounds, and a growing emphasis on self-expression and intrinsic value, regional disparities in consumption are gradually narrowing. Consumer demand is shifting from standardized, imitation-driven purchasing to diversified, rational consumption, with increasing attention paid to the personalization and experiential aspects of cosmetics. Greater focus will be placed on product quality, brand reputation, and after-sales service.

Beyond this, consumers have extended their scrutiny of cosmetics to encompass various social dimensions, such as whether ingredients are natural and safe, and whether packaging is eco-friendly. These concerns all reflect the consumer ethos of “seeking beauty while prioritizing health.” Consequently, in addition to segmenting personalized consumption by age, it is also viable to analyze it from a content perspective. Today, consumer groups are often influenced by a multitude of factors, including interests, lifestyles, and spending power, leading to the emergence of numerous content-specific personalized consumer segments, such as fashion-conscious men, parents engaging in parent-child consumption, and expectant mothers.

“Traffic,” “fan support,” and “idol nurturing” have become trending buzzwords exclusive to idol culture. The fan economy is a concept that encompasses both cultural and economic attributes, reflecting the significant consumption upgrade among the post-90s and Generation Z demographics, while satisfying young people’s desire for a sense of dreaming, protagonism, and participation. Entertainment marketing, centered on artists, film and television works, and content IPs, has seen the gradual rise of monetizing traffic assets. Currently, creating content that resonates with and is consumed by the post-90s and Gen Z cohorts has spurred intertwined consumption patterns driven by emerging industry trends, with word-of-mouth marketing exerting substantial influence within these consumer groups.

Zhang Kai, General Manager of the Social Commerce Division at InoHerb, pointed out that “compared with traditional advertising, endorsements by celebrities, key opinion leaders (KOLs), and peer recommendations on social media platforms such as WeChat Moments are more effective in influencing the purchasing decisions of the post-90s and Generation Z consumer segments.” The influencer economy represents a cultural upgrade of grassroots culture among new-generation consumers, and the disruptive impact of influencer-driven brands on established legacy brands cannot be underestimated. Social media and beauty-focused live streaming have become new battlegrounds for beauty consumption. The functions, efficacy, and usage methods of beauty products are most easily disseminated through word-of-mouth, a natural characteristic that has been significantly amplified by social e-commerce. Social media has become an effective channel for reaching consumers and shaping brand perception, while beauty live streaming has emerged as a powerful tool for capturing attention and driving sales volume. In 2018, InoHerb engaged popular influencer Chen Linong as its brand spokesperson. By leveraging a content matrix comprising sponsored articles, live streams, and short videos to generate extensive product recommendations, achieve viral propagation, and ensure network-wide reach—supported by the influencer economy and sustained by fan economics—the brand successfully elevated its star product, the Rhodiola Brightening Essence (commonly known as the “Little Red Bottle”), to new market heights, capturing the core consumer market of the post-90s and Generation Z demographics.

The "post-90s generation" refers to consumers born between 1986 and 1995. According to the "2017 Big Data Report on China's Internet Consumption Ecosystem" released by Yicai (First Financial), this consumer group, having grown up in independent, affluent, and open family environments, advocates diversified consumption patterns and pursues independent, personalized spending. As a result, the post-90s consumer segment has attracted significant market attention and is emerging as the next major driving force in social consumption.

Compared to the post-70s and post-80s generations, the broader post-90s generation holds more diversified consumption values. Their lifestyles, social skills, mindsets, communication channels, and work styles are distinctly unconventional; they lead vibrant lives, exhibit bold and humorous personalities, and act with decisiveness and courage. Regarding cosmetics, the broader post-90s generation has a unique perspective. Most believe that cosmetics, like people, must possess an independent attitude; without such an attitude, a product lacks distinctiveness and fails to attract attention. Their upbringing has endowed them with greater adaptability than their predecessors, yet they demand stronger relevance between products and their specific cohort. Compared to the post-70s and post-80s generations, the broader post-90s generation demonstrates higher openness to new products and concepts, showing a willingness to break conventions and try novel offerings.

Cosmetics are inherently fashionable. Against the backdrop of sweeping changes in the socioeconomic and cultural landscape, as consumer aesthetics shift from mass-market appeal to niche, community-driven preferences, the strategic focus of cosmetics companies has also evolved—from broad to targeted, and from singular to diversified. In the past, skincare and makeup trends remained relatively stable over several years; today, new trends emerge every few months.

In the Chinese cosmetics market, to win consumer favor, the fashion attributes of cosmetics have been maximized. Apart from a few brands’ core products that remain hot sellers, new products with improvements or optimizations in content, quality, and packaging are already on their way to launch. It is evident that cosmetic companies, such as Shanghai Jahwa and Jala Group, have made certain adjustments and changes to adapt to market shifts. Compared with the difficult transformation faced by traditional cosmetic enterprises, next-generation cosmetic companies like Marie Dalgar appear better positioned to accurately grasp evolving trends in personalized consumption.

Marie Dalgar’s relentless pursuit of art has yielded uniquely creative and stunning themes with each iteration, from “The Crazy Box” to “Fables.” Following its collaboration with KFC that sparked a “Pink Cool” trend—transforming 3,500 KFC outlets into “Pink Cool” spaces through posters featuring ice cream and lipsticks—Marie Dalgar continues to pioneer innovative strategies. Despite having no brand ambassadors and minimal large-scale advertising spending, the brand consistently delivers unexpected surprises for post-90s consumers. Its annually released limited-edition products have gradually become the most anticipated highlight among young consumers, garnering enthusiastic acclaim upon launch.

As China’s first Art Nouveau-inspired color cosmetics brand, Marie Dalgar has adhered since its founding in 2006 to infusing artistic thinking into cosmetic creativity, employing artistic techniques to present makeup, and applying cosmetics with an artist’s touch. The brand’s inherent restlessness has destined it to reject traditional conventions, driving continuous innovation and the creation of stunning cosmetic works of art. Marie Dalgar’s creative philosophy aligns seamlessly with the individuality, confidence, and health-conscious values of the post-90s generation. This strong resonance in values has fueled robust product sales, while consumers, captivated by the bold, vibrant, and dynamic imagery of both the cosmetics and models, have come to associate Marie Dalgar with youth and individuality, forging a fresh and distinctive brand perception.

Data released by platforms such as Tmall, JD.com, and Yicai (First Financial) indicates that the post-90s generation generally believes that everything they choose, including cosmetics, reflects their personality and attitudes. Centered around individuality, attitudes, and hobbies, they have spontaneously formed distinct circles and tribes, taking root on platforms such as Weibo, WeChat, QQ, Douban, and Zhihu. Each tribe or circle carries different labels, such as “sunshine,” “cute” (meng), and “ACG” (anime, comics, and games). Consequently, they tend to select products that are homogeneous with their own “labels.” Currently, some cosmetics companies leading industry trends have penetrated these circles and tribes of the post-90s generation, engaging in effective communication to strategically plan and selectively launch new products.

Targeting the highly active post-90s consumer demographic, who are known for their playful and humorous nature and inherent nonconformity, some companies have introduced new technologies and packaging to continuously launch products that align with the labels of post-90s circles or tribes. In 2018, Shandong Antao Biotechnology Co., Ltd. launched a range of A.T. products aimed at female customers, including cosmetics and facial masks. Among these, a lipstick emerged as their star product. Housed in a sleek black tube, the lipstick appears pale pink but changes into various colors depending on lip temperature. This lipstick has gained widespread popularity among post-90s consumers, with even some male customers making purchases.

Currently, the internet and mobile devices serve as the primary channels for cosmetic products and are regarded by the industry as a key litmus test. The emergence and development of the internet have provided individuals with opportunities to express their personalities and demonstrate their value, giving rise to a wave of emerging cosmetic companies branded by youthfulness and individuality. Meanwhile, established giants in the cosmetics industry have proactively entered the digital and mobile space. Online, cosmetic companies engage in fierce competition. Healthy competition acts as the driving force behind the development of the cosmetics industry. Amidst this competition, the supply-and-demand model within the industry has undergone a fundamental transformation, evolving from a simple “identify demand – launch new products – meet demand” approach to a more sophisticated model: “create demand (define community identity – publish manifestos or concepts) – guide demand (leverage community opinion leaders or idols, such as influencers and experts, to steer consumer preferences) – meet demand (brand upgrading – launch new products – fulfill demand).”

Alibaba Group CEO Daniel Zhang stated, “In the past, Taobao simply provided what users liked and preferred. In the future, we aim to help users discover their needs, thereby adapting to the changes brought about by consumption upgrades and driving shifts in lifestyles.” Taobao hosts more than 2,000 niche markets and 86,000 specialized merchants across various sectors, including categories such as men’s cosmetics and maternity cosmetics. The emergence and growth of niche products and markets not only demonstrate the continuous creativity of young people but also reflect a transformation in public consumer attitudes.

E-commerce platforms constitute the downstream segment of the cosmetics industry chain, directly engaging end consumers. As such, they are most attuned to consumer demands and typically respond first. While emerging cosmetics companies leverage their youthfulness, innovation capabilities, and expertise in social media operations to achieve rapid growth by using digital media as a launchpad, established cosmetics enterprises must also continuously infuse youthful elements into their organizations. These mature players need to cultivate distinctive brand identities, upgrade their supply-and-demand models, and create unique products to capture market share.

In an era where diverse attitudes flourish, the post-90s consumer demographic has increasingly gained the ability to express their feelings about real life. Expressive paradigms that transcend traditional contexts—such as "midlife crisis," "greasy middle-aged men," "thermos flasks," "goji berries," and "Buddha-like youth"—have been enthusiastically embraced and rapidly disseminated by this group. Compared with the post-70s and post-80s generations, who tend to favor established big brands, the post-90s consumers are more inclined toward cosmetics that directly address their pain points and better satisfy their individuality. For instance, independent designers, artisan craftsmen, and artistic styles are becoming the "new favorites" for many in terms of personalized consumption; understanding consumer psychology is the key to success. Additionally, since many young people stay up late and suffer from poor skin condition, skincare products that mitigate the damage caused by sleep deprivation, or emergency solutions such as masks, eye patches, and makeup that erase the signs of late nights, are highly popular. Skincare items like Guerlain’s Abeille Royale Night Cream, Givenchy’s Time-Filler Serum, and ELIXIR’s Collagen Sleeping Mask have been warmly received by professional women.

Regarding “low,” it means not blindly pursuing high-priced name brands, but instead selecting products that offer superior quality at reasonable prices. The consumer market offers a diverse range of choices, with continuous segmentation in the price-to-quality ratio within the same product categories. Consumers from the broad post-90s and Generation Z cohorts have higher expectations for pricing, product substance, and brand premiums, all while maintaining reasonable expectations for quality and service; they no longer pay solely for brand premium. Regarding “high,” it refers to the ongoing adjustment and optimization of consumer product category structures. Demand among post-90s and Generation Z consumers is becoming increasingly diversified. Beyond product functionality, their spending continues to rise in areas such as brand services, user experience, and emotional satisfaction.

Targeting consumers from the post-90s generation and Generation Z, InoHerb is committed to embodying values of independence and confident beauty, striving to establish itself as an expert in Chinese herbal skincare through significant efforts. In terms of brand value, InoHerb emphasizes traceable authenticity of ingredients, technological innovation, and the millennial heritage of traditional Chinese herbal culture. Regarding its product portfolio, series such as Rhodiola, Water Lily, Core Pure, Quadruple Effect, and Dark Tea, along with product lines like single-sheet masks and walnut-based items, are primarily designed for post-90s and Gen Z consumers, addressing their skin concerns across all scenarios. In terms of customer engagement, InoHerb is quietly building a user-centric content matrix.

By attracting consumers with “affordable” and “premium” consumption to break through challenging market conditions, InoHerb’s business model—anchored by brand and users as two pillars, with relationships and product content serving as the bridge—is highly worthy of reference.

The primary consumers in the cosmetics market, such as working women and those born in the 1990s, have grown weary of large-packaged cosmetics. Instead, small-packaged products have gained their favor due to their portability and diverse variety. Compared with large packages, small bottles have a shorter usage cycle, allowing consumers to try new products immediately after finishing the current one. This better satisfies their psychological desire for novelty or for finding more suitable cosmetic products. As some consumers frankly stated, “It takes about half a year to finish a 200mL bottle of toner. Over time, it becomes frustrating, yet I am reluctant to throw it away. Small-sized cosmetics perfectly solve this problem.”

Furthermore, product efficacy is inversely proportional to the duration of use after opening. The longer a bottle remains open, the more the product is exposed to air, leading to progressive oxidation. This not only causes continuous loss of nutrients but also a steady decline in effectiveness. In light of this issue, smaller-sized cosmetic containers are clearly more consumer-friendly. Reduced packaging size shortens the usage period, ensuring the product remains fresh after opening and allowing its skincare benefits to be fully realized. Among various cosmetic products, serums packaged in small bottles typically have a usage cycle of one week. This significantly shortened cycle maximizes efficacy, making their advantages even more apparent.

Post-90s individuals exhibit a prominent characteristic: “simultaneously undermining their health while pursuing wellness practices.” As a generation predominantly composed of only children, they bear immense pressure from career demands, marriage, family responsibilities, and elder care. Coupled with unhealthy lifestyle habits, their physical condition has gradually deteriorated. Relevant data indicate that white-collar workers born in the 1990s have become a high-risk group for suboptimal health (sub-health). From a medical perspective, skin is the human body’s largest respiratory organ, and healthy skin also serves as an outward manifestation of beauty. Post-90s enthusiasts of wellness are thus turning their attention to cosmetics, seeking both beauty and health.

At this point, men and women among the post-90s generation have basically reached a consensus: cosmetics are used by everyone, with an emphasis not only on significant efficacy but also on health and safety. Just as red date and goji berry tea is not exclusively for women but can also be consumed by men, this mindset has taken hold. This psychological demand among post-90s consumers has directly sparked a trend in cosmetics centered on “natural + green + healthy.” In China, wellness and health are inherently linked to Traditional Chinese Medicine (TCM) and Chinese herbal medicine, prompting many cosmetic companies to focus on herbal-based cosmetics. In their promotional campaigns, these companies inform consumers that their products use natural ingredients derived from medicinal herbs, maximizing the retention of natural components while avoiding pollution of rivers, lakes, and seas, thereby being environmentally friendly. Currently, the demand for natural and safe products has extended from consumers to the corporate side. Industry giants such as L'Oréal, Procter & Gamble, Unilever, and Shiseido are shifting towards natural and green directions, with some companies even adopting green, natural, healthy, and pollution-free principles as their corporate mission and brand core.

The “2018 Big Data Report on the Internet Consumer Ecosystem,” released by Yicai, shows that as digital natives, the post-90s generation has become the quintessential “convenience-seeking consumer segment.” This “laziness” is not pejorative; rather, it reflects the convenience and comfort to which the post-90s cohort has grown accustomed amid the trend of consumption upgrading. In other words, with significant advancements and widespread offline adoption of mobile internet and Internet of Things (IoT) technologies, it has become natural and taken for granted for the post-90s generation to embrace such convenience. Their pursuit of ease has exerted a profound and extensive influence on the cosmetics industry, one manifestation of which is the rise of “lazy-person” cosmetics.

A major characteristic of "lazy-person" cosmetics is the multifunctionality of products. Taking shampoo as an example, some post-90s consumers have taken laziness and homebody tendencies to the extreme, preferring simple and easy-to-use hair care products. This has given rise to all-in-one hair care solutions that combine blackening, nourishing, and deep conditioning. Consumers do not need to mix or prepare the product; they can simply follow the timing instructions on the label, just as they would with regular shampooing. This integrates cleansing, coloring, and conditioning into a single step, saving time and effort. In the realm of color cosmetics, some companies have also launched multifunctional products. For instance, there are products that integrate an eyebrow pencil, brow brush, and brow powder into a single unit. With one pen serving three purposes, users can access different components by simply rotating the barrel, making both application and portability highly convenient.

Currently, the "laziness" of the post-90s generation has permeated every aspect of their lives, taking this trait to the extreme. Meanwhile, this "lazy cohort" demonstrates a clear preference for cosmetics that combine practicality with entertainment and fun, spearheading a rise in personalized and diversified consumer demand. This trend has driven cosmetic companies to continuously innovate in the realm of "lazy makeup," thereby creating a virtuous commercial cycle.

“Infantilization of Adults” is a defining characteristic of the broad post-90s generation. From the use of cutesy phrases like “memeda” (a kissing sound) a few years ago, to the widespread trend of pouting and acting cute in selfies, and the immense popularity of “little fresh meat” (young, handsome male idols), all of these phenomena vividly demonstrate the post-90s cohort’s pursuit of cuteness and emotional healing. In response to this “infantilization of adults,” a wave of infantilization and cutification has swept through the cosmetics industry. Some argue that within the consumer market, “infantilization” primarily drives conceptual innovation.

First to capitalize on the “kidult” trend were cosmetics retailers, who extended online meme culture into offline experiential retail environments, transforming their stores into hubs for fan interaction. This strategy not only strengthened fan loyalty but also boosted sales of related merchandise. Next came cosmetics manufacturers, with many brands investing heavily in product design and packaging. Their cute packaging combined with robust functionality attracted significant attention from female consumers. Finally, some cosmetics companies have internalized this trend as part of their brand identity, such as by leveraging anime IP characters in their product designs.

Marketing is like cooking a delicate dish: in the past, adding just one ingredient would instantly release its aroma. But now, with so many ingredients being thrown into the pot, only those with bold or unique flavors can be detected. Given the limited capacity of the pot, no single product can command a large market share.

Personalization exhibits a distinct exclusivity, defined not by “having what others have,” but by “possessing what others do not.” Personality refers not only to the core efficacy of a product but also depends on its content and aesthetic appeal. Product homogenization remains a major challenge in the current cosmetics market. When products from different brands are largely similar in terms of ingredients, packaging, and efficacy, price becomes secondary, while personality has become an increasingly important factor for consumers. The prosperity of customization, limited editions, and IP collaborations all reflect the demand for personalization. Relevant data shows that post-90s and post-95s males stand out in color cosmetics consumption, with the men’s beauty market growing rapidly, signaling the arrival of the era of male beauty consumption. With consumption upgrading and the popularity of the “fresh young meat” and idol cultures, the “flower boy” image has gained widespread acceptance. The exquisite makeup of male idols is seen as representative of current trends, and men’s concepts of beauty are gradually taking shape, leading them to pursue aesthetic appeal. The “beauty economy” continues to expand this market size, which is also a manifestation of personalization.

In 2018, Inoherb leveraged the cultural IP of “Shanghai University of Traditional Chinese Medicine” and built its strategy around “seven traceable authentic herbal ingredients.” By collaborating with celebrity Chen Linong, the brand launched limited-edition gift boxes and incubated its proprietary IP, “Goddess Doctor,” aiming to engage post-90s and Gen Z consumers through a personalized, youthful image. In 2019, Inoherb further empowered its brand through an IP matrix, striving to forge a passionate “romance” with post-90s and Gen Z consumers 99% of the time.

In 2019, amid the rising tide of personalized consumption in the cosmetics industry, it will be a top priority for cosmetics companies to pay close attention to the preferences of different consumer groups, integrate their own brand values, and launch products or experiences with personalized content in line with the current market environment. The comprehensive development of brand value content, product content, and relationship content tests not only a brand’s market insight and content marketing capabilities, but also its R&D and production capabilities within the backend supply chain. Among these, the pan-post-90s and Generation Z consumer groups represent the sunrise sector of the entire industry; capturing this demographic will earn favor across the entire market.