Recently, Qixinbao, a subsidiary of IntSig Information, released the 2021 Regional Research Report on the national cosmetics industry (hereinafter referred to as the “report”) to give insight on the development status of China’s cosmetics industry through big data. The report shows that in recent 10 years, the number of new cosmetics enterprises in China has increased year by year. In 2020, the number of new enterprises exceeded 25,000, and the growth rate reached 70%. In terms of market scale, the scale of China’s cosmetics market reached 340 billion yuan in 2020. The scale exceeded 367.8 billion yuan from January to November 2021 and the growth rate reached 15.3%. However, the revenue of local cosmetics brands is significantly lower than that of international brands. At present, China is still only a large global cosmetics consuming country rather than a strong consuming country. (as of November 2021, the following data are the same)
?A number of “Beauty Silicon Valley”, “China-Chic”sprang up, however the cosmetics industry in our country is still large but not strong
According to incomplete statistics, at present, many cities in China have proposed to build a beautiful and healthy industrial base. Such as “Baiyun Beauty Bay” in Baiyun District, Guangzhou City, “Beauty Silicon Valley Industrial Park” in Qingyuan City, Guangdong Province and “The Oriental Beauty Valley” in Fengxian District, Shanghai City. It can be seen that all cities in China have been paying close attention to the critical period of the rapid development of the cosmetics industry. The report shows that China’s cosmetics industry has a high degree of agglomeration. There are 86,239 cosmetics enterprises in China, and the number of enterprises in Guangdong, Anhui and Hunan provinces accounts for 44.54%. Skin care and make-up enterprises are mainly concentrated in Shenzhen; Fragrance and daily chemical enterprises are mainly concentrated in Guangzhou.
The rapid development of the industry has also driven industrial innovation. In recent years, cosmetic products have made continuous innovations in ingredient, efficacy and packaging,etc.The number of new invention patents in the cosmetics industry has also increased year by year, but the growth rate of new patents has slowed down in the past 2 years. From January to November 2021, the number of new invention patents exceeded 30,000. The number of intellectual property of design increased by more than 11,000 in 2020.
Although the cosmetics region territory and industrial innovation in China are prominent, it’s undeniable that Chinese cosmetics brands are still rare in the international premium cosmetics market, and domestic consumers prefer famous international cosmetics brands.
“China is a large global cosmetics consuming country but not a strong one.”Professor Huang Jun from Shanghai Institute of Pharmaceutical Industry analyzed publicly in a science conference that L’OREAL, P & G, Unilever, Estee Lauder and SHISEIDO account for about 52.4% of the global market share. Among the top 20 enterprises in the market, foreign-funded enterprises account for about 80%, and local enterprises make up only about 20%.
?Guangzhou，“Cosmetics OEM capital” ——invisible city behind famous cosmetics brands
In territory of China’s cosmetics industry, most enterprises gather in coastal areas, and show a cosmetics industry pattern of “strong in the south and weak in the north, strong in the east and weak in the west”. According to the data of Qixinbao, there are 86,239 cosmetics enterprises in China, of which the number of enterprises in Guangdong Province is the largest, accounting for 25.5%. Guangzhou, known as the “cosmetics OEM capital”, has 373 OEM factories, which is the city with the largest number of cosmetics OEM enterprises in China.
The emerging of new brands and the accelerated layout of famous foreign brands in Guangzhou have become a major force to boost the prosperity of cosmetics OEM. Many international cosmetics brands choose OEM manufacturing in Guangzhou, and international OEM factories also choose to build factories invest in China. New brands such as Perfect Diary, HFP, Florasis, also adopt the OEM mode. It can be seen from the scale pattern of Guangzhou cosmetics OEM factory, COSMAX ranks the first in China’s cosmetics OEM enterprises.
?The trend of investment and financing has slowed down, the number of trademarks has decreased, and enterprises focus more on existing brand management
Overall, the annual number of new financing times and financing enterprises in China’s cosmetics industry in recent 10 years showed a trend of “first increasing, then decreasing”. During 2010-2016, the annual number of new financing times and financing enterprises increased year by year, and the growth rate decreased first and then increased. From 2017 to 2020, the annual number of new financing times and financing enterprises and the growth rate decreased year by year.
It can be seen that the investment and financing of cosmetics enterprises tend to be conservative in recent years, which also affects the operation strategy of enterprises to a certain degree. Data from Qixinbao indicate, the trademarks of cosmetics enterprises in recent 2 years have met a sharp decline. In other words, enterprises in the industry focus more on existing brand management, significantly slowing down the external expansion.
Source from: https://mp.weixin.qq.com/s/RxsYegK8bjAgEfXBcoBiRg
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