Although slightly affected by the slowdown in the growth of gross domestic product, the grooming business aimed at men nonetheless surged 17 percent to 4 billion yuan in China in 2012, according to a recent industrial report.

The report released by Euromonitor International in April 2013, shows that male grooming experienced the second strongest growth in beauty and personal care in 2012, despite the sluggish economy

Large market demand, a relatively small base and increasing sophistication among men were the main drivers, the report said.

More value-added products were introduced, with existing businesses expanding their product lines and new firms entering the category.

For example, in May 2012, Shanghai Jahwa United added to its men's skin care brand gf with DrD for gf, a men's hair care product.

Amway launched a new skin care series designed particularly for Asian men in July 2012.

Diversified demand among men also drove more companies to develop segmented skin care products in addition to basic skin care goods, including facial cleansers and facial creams, which are now big business in male grooming.

Razors took a share of 42 percent of the sector.

Hypermarkets remained the leading distribution channels for men's grooming products last year. But the rocketing development of online retail and a switch to beauty specialist retailers led to a decline in its market share, according to the report.

The Chinese are more willing to pay more to buy premium brands such as Biotherm Homme, a beauty and skin care product.

In 2012, L'Oreal China continued to dominate the sector with double-digit growth in the country mainly because of its ongoing investment in marketing and product innovation. The brand accounted for 22 percent of the men's grooming and 41 percent of the men's skin care market.

Domestic companies were able to compete with foreign counterparts thanks to aggressive marketing strategies and product research.

Local brand Shanghai Jahwa United saw significant growth with its gf brand.

With already more than 100,000 sales terminals nationwide, the company is planning even stronger growth in the future, the report said.

The report forecast a demand for more high-quality men's grooming products as an increasing number of Chinese men begin improving their appearance.

Sales will see faster growth in lower-tier cities and rural areas in the country because leading brands have started to penetrate these markets.

Premium products will continue to see better performances in large cities where people have more disposable income and care more about brands, the report said.

Wang Zhuoqiong