With the deepening of China’s national income doubling plan and the implementation of urbanization strategy, the total number of urban residents in China has further expanded, and the disposable income per capita has been further improved, which has led to the continuous increase of the market scale in the cosmetics sector. Euromonitor data show that the sales scale of China cosmetics market has increased from 204 billion 533 million yuan in 2010 to 336 billion 61 million yuan in 2016, and the compound growth rate is 9.06%. It has become the second largest cosmetic consumer in the world after the US. In the past two years, due to the slowdown of the economy and the downturn of the retail terminal, the growth rate of the industry is down. The growth rate is maintained at around 6%. It is estimated that the scale of China market will reach 358 billion 765 million yuan in 2017.
At present, there are nearly 4,000 enterprises in China, 500,000 kinds of China cosmetics and a large number of production enterprises. Euromonitor data show that the domestic cosmetics market sales of the top brands for foreign brands, domestic only Shanghai Jahwa and Garan group in the column, foreign brands occupy leading position in the market. At the same time, the market share of the top ten brands of cosmetics is less than 50%, and the concentration of the whole market is not high. Skin care products are an important sub industry in the cosmetics industry. Euromonitor statistics show that the compound growth rate of Chinese skin care products market from 10 to 2015 is 9.85%, reaching 160 billion 818 million yuan in 2015, which is a fast growing cosmetics sub category.
Compared with the developed countries, the consumption of per capita skin care products in China is only 17.96 dollars, which is much lower than that of the United States and Germany. In the future, with the promotion of consumption and the cultivation of the consumption habits and ideas of skin care products, the gap is expected to be narrowed.
Development trend of China cosmetics industry
As consumers become more mature, their preferences on product uses, components and brand positioning are also more subdivided. The concepts of whitening, freckle, anti – aging, moisturizing, sunscreen and replenishing water will be more and more recognized by consumers. The segments of the eyes, lips, cheeks and neck are more closely related to the specific needs of the consumer. In recent years, pure natural products and organic products are highly sought after. It is a hot spot for the future cosmetics market, and also a key area for all cosmetic companies to enhance their research and development.
At the same time, domestic brands are better at developing two or three line daily chemical outlets than international brands, and quickly seize the two or three line city mass market. At the same time, in order to adapt to the increasingly diverse needs of consumers and to pursue the high profit margins corresponding to high-end products, domestic brands began to introduce high-end products and penetrate into high-end products market. Cosmetics companies should diversify their sales channels under multi pronged approach, while consolidating the traditional sales channels, while laying the electricity supplier channel to achieve multi-channel sales. With the rapid development of China e-commerce market,China cosmetics market will have more and more opportunities.
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