Chinese Cosmetics

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Chinese cosmetics sectors have been growing throughout the years. Industries related to e-commerce such as the cosmetic industry, have benefited from the pandemic. Also, foreign cosmetics brands have taken over the market, growing their market share. However, Chinese domestic cosmetics brands have also been growing. There are different marketing strategies that cosmetic brands use and have turned out to be successful, improving the brand´s clients base. China's cosmetics market occupies 12.7% of the global cosmetics market, being the second largest market after the United States.

According to the National Bureau of Statistics, the yearly growth pace remains at 10% since 2013 and the retail sales reached 299.2 billion RMB in total. Chinese cosmetics include a range of different products such as skincare, makeup and perfume. Skincare products have accounted for more than 50% of the Chinese cosmetics market. Also, makeup products have been increasing since 2014.

One of the most famous brands of Chinese cosmetics is called Perfect Diary and it is currently the top brand, having a lot of products and a loyal client base. Japan and South Korea have also tried to increase their market, accounting for 30% of the global market while China accounts for 37% of the market. Europe and America follow them by having 29% of the total global cosmetics market. On the other hand, Chinese cosmetic brands have a competitive advantage: lower costs. Besides, unique designs have caught the attention of many international customers. The rise of Chinese cosmetic domestic makeup brands are also related with sales promotions. For example, in 2020, Perfect Diary and Floraris (both Chinese brands) ranked first and fourth in the 618 Shopping Festival in 2020.

According to information from Tmall and Taobao, customers under 30 years old are the ones who order more cosmetics online. Even though customers aged 18-22 make up 25% of the market, their market share has dropped throughout the years due to natural trends and different make up styles. Chinese brands are so successful because their marketing efforts are spread through a much wider variety of activities and platforms, taking advantage of short video apps, live streams and marketing feedback. Without hesitation, the Chinese cosmetics industry will keep growing throughout the years.

(Shopping Festival Ranking, Askci, Daxue Consulting)

Author: Georgina Alvarez Bruno

References:

The rise of Chinese domestic cosmetics brands: Florasis, Little Dream Garden, WIS, and Perfect Diary - Daxue Consulting - Market Research China. (2022). Retrieved 13 February 2022, from https://daxueconsulting.com/domestic-chinese-cosmetics-brands/