China’s beauty market is stabilizing

On December 16, L ‘Oreal China held its 25th anniversary celebration in Shanghai. At the ceremony, L ‘Oreal CEO Ye Hongmu said that China is rapidly emerging as a trend vane in Asia and the world, as well as an important source of disruptive innovation. 

On December 15, another international beauty giant, Estee Lauder, opened its China Innovation Research and Development Center, also in Shanghai. The R&D center, which combines modern and traditional Chinese design elements, covers an area of 12,000 square meters and features advanced formulation and clinical laboratories, shared Spaces, interactive testing facilities, packaging model studios and pilot workshops to accelerate the transition from consumer insight to commercialization. R&d center also has a special broadcast room and experience center, so that Chinese consumers have the opportunity to participate in the field of new product creation.

On November 15, Shiseido held a press conference on its 150th anniversary in Shanghai. Shiseido revealed that the group will continue to invest in the next few years to build its second largest R&D center in the world in China, and promote more innovation tailored to China through its unique “century-old Pioneer of Oriental Beauty” product research and development philosophy. Under the guidance of the “Winning Beauty” strategy, Shiseido China will not only expand new markets through new brands, but also actively exploit the growth of existing brands and constantly innovate.

By developing and releasing a new sustainable growth plan, Shiseido has demonstrated its great confidence in the continued growth of the Chinese market. “The best days of the Chinese beauty market are just beginning.” Shiseido responsible in an interview with reporters said.

These are not the only cases in which international cosmetics giants will show confidence in the Chinese market and increase their investment in the country throughout 2022. In September 2022, Unilever launched its biggest investment in China in nearly a decade: the Guangzhou Cong Chemical Plant. According to published reports, Unilever plans to invest 1.6 billion yuan in the construction of the new production base, which covers a total area of about 400 mu, covering Unilever’s personal care products, food, ice cream and other categories, with an estimated annual output value of about 10 billion yuan. Among them, the construction of a personal care plant will be completed first next year.
The big companies are rushing to invest more in China against the backdrop of the overall downturn in the cosmetics market in 2022. Not long ago, the National Bureau of Statistics released economic data for the January-November period. According to the statistics, the total retail sales of cosmetics increased month-on-month in November, but overall there was still a small single-digit decline compared to last year. Retail sales of cosmetics totaled 56.2 billion yuan in November, down 4.6 percent year on year. From January to November, retail sales of cosmetics totaled 365.2 billion yuan, down 3.1 percent year on year.

However, the short-term decline in the market data, can not stop the big companies on the Chinese market, which is the reason for the giants to increase investment in China. So, why do the giants firmly believe in the Chinese cosmetics market despite the poor market environment this year?

First, China still has huge population and consumption potential. In recent years, China’s GDP has shifted from high-speed growth to high-quality steady growth, but looking at the world, China is still the most dynamic and potential large economy in the world, which means that in the future, as a beauty industry, the cosmetics market will still be a very dynamic and vitality market.
Secondly, in the rapidly developing China, the penetration and maturity of cosmetics still have a large room for improvement. With the rapid development of China’s economy, although China has become the second largest cosmetics market after the United States, the scale of cosmetics industry and related consumption are rapidly increasing, but compared with mature markets, China’s cosmetics market still has huge potential.

Finally, international giants have great confidence in China’s market openness and business environment. The CIIE has been held five times in a row, despite the epidemic. The CIIE has demonstrated China’s determination to open up, and international giants have also demonstrated their importance and confidence in the Chinese market at the CIIE.

As 2022 approaches, the negative impact of COVID-19 on people’s lives and the economy will eventually fade. Through a series of investments, cosmetics giants have taken the lead in demonstrating their strategic strength and confidence in China’s cosmetics market. Their investment in the market will further feed the market. There is reason to believe that 2023, we will face a full of vitality and vitality of the cosmetics market.

For Topfeelbeauty, 2023 is also a year full of opportunities and challenges. In addition to our traditional customized wholesale business, we also want to sell to domestic and foreign consumers through our own make-up brand, so that they can feel how good the products made by a high-quality make-up company are.