China’s beauty and cosmetics industry is continuing to cultivate alternative markets and embarking on capability upgrades to sustain growth, even as export projections for the year ahead are optimistic.
The global economic slowdown has not affected suppliers as heavily as it has other export manufacturing sectors in the country. This has not resulted in complacency among businesses, however, but actually drove many to intensify strategies to boost their competitive advantages.
At the fore is an increased emphasis on emerging economies. Suppliers believe there is greater room for expansion in such markets, particularly for OBM lines.
The following are some of the key developments we see in China’s beauty and cosmetics industry:
• Companies are sharpening their focus on developing cosmetics that can match the skin tone and the base color of consumers in new markets such as South America and Asia. This is especially true for manufacturers that want to launch branded collections there.
• To strengthen their presence in emerging economies, several makers are establishing sales and R&D offices in target destinations. Doing so has enabled them to release products that meet the needs of consumers there.
• Despite the heightened focus on new markets, businesses will continue targeting traditional destinations. Among the respondents in Global Sources’ survey, 85 percent indicated that the EU and North America will remain their primary export markets.
• Many operations are investing in advanced equipment to improve daily productivity by as much as 20 times. Computerized machinery is also expected to minimize wastage and enhance precision in manufacturing processes.
• R&D capability is being upgraded as well. Several companies are now able to launch skin care and makeup containing mineral, organic or natural ingredients. Multifunction releases, including anti-aging and UV-protective cosmetics, are also becoming the mainstream.
The above is extracted from the Executive Summary of China Sourcing Report: Beauty & Cosmetics
To learn more about this report, visit: http://www.chinasourcingreports.com/csr/beauty-cosmetics
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