China’s domestic cosmetic industry is likely to revive and expand as more and more players are likely to enter the country’s cosmetic market.
As per the news published by
Alibaba, the domestic cosmetic industry in China is expected to reappear, after being foreign brands’ “second sister” for years. Websites and shops have fuelled the revival and popularity of homegrown makeup over the past couple of years.
Xiefuchun, a 179-year-old cosmetic brand in Jiangsu Province, entered an agreement with Wal-mart in October 2009 to sell its products in around 150 malls. Further, a 147-year-old cosmetic manufacturer based in Hangzhou (Zhejiang Province), Kongfengchun has opened over 70 stores in the province since 2008. Similarly, Miqi, based in Beijing, had enjoyed a strong export market in Japan and is now finding success in its homeland.
According to a
RNCOS research report, “
Cosmetics and Toiletries Market in China”, China offers tremendous opportunities to both domestic as well as international brands because of low per capita consumption of cosmetics and toiletries products in the country as well as its vast consumer base. Further, various other aspects like increasing influence of the western world, rising purchasing power, and burgeoning consumerism culture are providing the industry a desired platform to expand.
There are several benefits for a cosmetic manufacturer if he adopts an organic approach. Organic certification is certainly a big advantage for the cosmetic companies as it provides them a distinction in the market.
Besides China, the Asian market, including companies in South Korea, Japan, Malaysia, and Australia, is also tapping in this advantage. According to Organic Monitor, Ecocert, the European standard, has gained immense fame among these Asian companies.
Also according to an analyst at
RNCOS the future growth will be driven by changing market dynamics and emergence of domestic companies in Chinese cosmetics market landscape. The market will see tremendous growth in coming years and will remain far from attaining saturation level.
The report from
RNCOS anticipates that backed by such strong fundamentals, the market revenue of Chinese cosmetic and toiletries industry will surpass US$ 25 Billion by 2012.
According to a Research Analyst at
RNCOS, “The emergence of domestic companies in the Chinese cosmetic market landscape along with changing market dynamics will drive the future growth of the industry. There are no signs of the market attaining saturation point in near future and thus, it will continue enjoying tremendous growth.”
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