China'S Cosmetics Market Is Developing A "Chinese Power" That Can Not Be Ignored.

In recent years, the sales volume of domestic cosmetics has increased rapidly, and China's cosmetics market is developing a "Chinese strength" that can not be ignored.

Recently, the National Bureau of statistics published the data of retail consumer goods retail.

Data show that in 2015, domestic cosmetics retail sales reached 204 billion 900 million yuan, an increase of 8.8% over the same period last year, which is 6.9% higher than that of GDP in the same period. China has become the second largest cosmetic market in the world after the United States.

At the same time, in January 2016

The top ten brands of the cosmetics sales list, the beeches, the Korean bundles and the CHCEDO are ranked the top three in the beauty care category. Only two foreign brands, L'OREAL and Estee Lauder, are listed in the list.

"The scale of the domestic cosmetic market has increased rapidly, and the exuberant demand has promoted the production and scale expansion of China's local cosmetics enterprises. At the same time, the different demands of consumers on products have created a large number of market segments, bringing business opportunities to enterprises and expanding their development space.

As one of the largest cosmetics markets in the world, China has provided a broad stage for the development of local cosmetics companies.

CIC consultant chemical industry researcher Li Jianan said.

Local cosmetics brands break through "counterattack" foreign brands

The 180 million best sound in the fourth quarter, Shanghai Jahwa and Alibaba have reached a strategic cooperation. CHCEDO has invited Chen Yao to be the new brand spokesperson. In recent years, the local cosmetics brand has been moving constantly, and the "domestic goods" have come back to the consumers' sight.

I visited a number of shopping malls cosmetics counters found that the mass cosmetics skin care areas including the Herborist, CHCEDO, and other domestic cosmetics attention is gradually improving.

"The first skin care product I used to use since I was a child was

"Therefore, there is a special feeling for the skin care products made in China". Miss Ling, who is buying in the counter, told the author that after trying many foreign brand cosmetics, she again chose to use the cosmetics made in China. "After years of development, the production technology has been continuously improved, and the quality management is becoming more and more perfect. The product is not inferior to the foreign brands, and the price is fair."

Foreign brands have long dominated the domestic cosmetics market for a long time.

However, this market structure is slowly changing: local cosmetics brands such as the Herborist, CHCEDO, and Korean bundles are breaking through to win more market share from foreign competitors.

Bain's consultation with a report released in 2015 confirms these points.

The report shows that the growth rate of local consumer brands is higher than that of foreign brands.

The overall growth rate of local companies in 2014 was 10%, which continued to lead the entire market, accounting for about 70% of the sales of 26 category markets, while the growth rate of foreign brands in 2014 was only 3%.

At the same time, 87% of the market growth in 2014 contributed by local brands and 13% from foreign brands.

There is no coincidence.

According to the 2015 annual performance pre announcement announcement of Shanghai Jiahua Abt Associates Inc, a leading local cosmetics company, it is estimated that net profit attributable to shareholders of Listed Companies in the year 2015 will be increased by 145% compared with the same period last year.

Through these data, we can easily find that the market share of local cosmetics is growing rapidly, and the momentum of "counter attack" is very obvious.

"The rise of local brands, on the one hand, is derived from the re recognition of consumers' national goods and eastern culture, which can objectively evaluate the quality and brand value of local products, and on the other hand, it is derived from the overall enhancement of the competitiveness of local enterprises."

A person who declined to be named in the daily chemical industry told the author.

Starting from the user, the cost of electricity, the brand of soil, "killer".

In the fierce competition in the domestic cosmetics market, the development of e-commerce has provided great opportunities to local brands.

Among them, the gazelle and Shanghai Jahwa have a good performance in the layout of the electricity supplier.

According to public data, last year, the "double eleven" Gazelle led the sales champion of cosmetics category with 108 million sales, becoming the brand of first single day retail sales in the history of Tmall cosmetics.

"First of all, the product has been accumulated and precipitated for 85 years. We have always insisted on starting from the user's skin needs, creating the best quality products. Secondly, as a classic domestic product, the company has actively adjusted its brand strategy, turned to the young market, grasped the main force of Online consumption, grasped the consumption psychology of young people, and set up its own brand image among young people."

Like the hundred antelope, it was founded in 1898.

Shanghai Jahwa is also one of the typical representatives.

It is reported that last year, "double 11" on the same day, Shanghai Jahwa brand (Herborist, GF, six gods, Maxam, jade Ze, Kai Chu, Jia An, twin sister, tea Yan) to achieve the same day sales of the entire network billion.

Among them, taking Herborist as an example, the sales of flagship store online on double 11 days increased by 2.6 times compared with the same period last year, and the sales of cosmetics category ranked 10 in the top 10 (1.9% of the categories), ranking ninth.

In addition, GF brand has become the black horse of beauty makeup category. It is the first sales volume of men's skin care products in the whole network. The sales volume of the whole network cleanser category is the first. Tmall GF flagship store is the first beauty shop sales category.

Shanghai Jahwa responsible person believes that compared with foreign brands, China's local cosmetics brands can more clearly and directly understand the needs of Chinese consumers.

"On the one hand, targeted research and development can provide Chinese consumers with more cosmetics and skin care products that are more suitable for the Chinese people. On the other hand, compared with foreign brands, local enterprises can establish a more rapid market reaction mechanism."

"Local counterpart" depends on the rapid development of electricity providers, "Li Jianan said." local brands are relatively early in the field of e-commerce than foreign brands, and some brands even develop products for e-commerce channels. "

The sensitivity of the new channel has made a large number of local brands gain the dividends of the rapid development of the electricity supplier. The advantage of first mover also makes the local brands' performance and strength surpass the foreign brands in the field of e-commerce.

Cosmetics industry analysts pointed out that in the 2015 China cosmetic market growth, in the field of mass cosmetics, the contribution of international brands is limited.

"After long accumulation, local brands can compete positively with international brands in terms of channels, marketing and promotion. This is a big change and a turning point."

Face up to the gap "cold" under the "domestic craze"

For the cosmetics industry, the best time for foreign-funded enterprises is over, and the most difficult time for local enterprises is over.

Although many data indicate that local brands are "counterattack", there are still some gaps in product development, technology support and so on compared with foreign brands.

Yu Wei, a global partner of Bain, believes that local brands quickly seize the market share, but on the whole, the revival of domestic goods is not an overnight job.

"At present, the domestic cosmetics brands mainly occupy the middle and low end market, concentrated in the market share of less than 200 yuan, but they are less involved in the high-end market with more than 300 yuan".

The dual choice of brand and quality is an important part of the strategic development of the old brand of domestic products.

In 2005, the Rex repositioned the plan.

From the introduction of "herbal concept" to the emergence of new products from younger and high-end products, Karen Mok has attracted a lot of attention from the Shanghai Beauty Expo to the famous "China good voice" and other popular columns, which has made consumers feel brand new for the 85 years of local brands.

"Brand and quality can not be small. If there is no quality support, it is difficult for enterprises to gain a firm foothold in fierce market competition.

We will take advantage of local advantages and extend the Chinese culture to enhance the brand's shaping power, so as to further narrow the distance from the international brand.

In order to keep up with foreign brands and become an international first-class daily chemical enterprise, Shanghai Jiahua is also strengthening the core competitiveness of the four brands.

Shanghai Jahwa relevant person in charge introduced: "one is the differentiation system of Chinese culture; the two is the efficient and fast market response; the three is the perfect channel coverage and effective terminal control; and the four is the direct interaction with consumers under the new economic mode."

Yu Wei said: "with the strength of differentiated oriental culture and strong channel advantages, improving product quality and brand effect, and stepping into the high-end market and overseas market, the development of local daily chemical brand will be an irresistible trend."