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Overview On China’s Cosmetics Industry

Cosmetics industry is a developing and profitable industry in China. Knowing much information of cosmetics industry is helpful for investors to make fortunes and for customers to have a deep understanding about the industry.

Cosmetics industry is a generic term used in painting. The origins of cosmetics have a long history. Modern cosmetics can be dated back from "Xiefuchun" opened in 1830, Yangzhou, Jiangsu Province to "Kongfengchun" opened in 1862, Zhejiang Province. Both of them are pioneers in early cosmetics industry. Since reform and opening-up, Chinese cosmetics industry has a rapid development. Nowadays, it has made unprecedented achievements. Chinese cosmetics market is the largest emerging markets globally. In the two decades, it has formed an industrial group in a certain scale. With the Increasing number of Cosmetics enterprises and cosmetics brands competition in the market has become ferocious

In recent years, development characteristics of cosmetics industry can be included in following aspects.

Firstly, the development speed in Chinese cosmetics market accelerates as a whole, and the profits increases. The percentage of beauty products, accounting for 35% in cosmetics products, is much larger than other products. It can be seen that beauty products are still the mainstream in cosmetics market. According to China Research and Intelligence , more than 3,200 enterprises are engaged in cosmetics industry in China. The varieties of products have nearly more than 25,000. New products always constantly appear in large numbers

Secondly, the quality of cosmetics products is in different degrees. People are worried about it. In 2011, The State Administration of Quality Supervision, Inspection and Quarantine newly released the lists of banned cosmetics, including some famous cosmetics brands.

Thirdly, giants in international cosmetics industry are speeding up to expand Chinese market. Domestic brands suffer enormous impacts from the outside. In Chinese cosmetics market, the market share in foreign-owned and joint enterprises has been up to 80%. From the financial statistics in some famous brands, such as L'Oreal and Estée Lander, the sales achievements of some high-level cosmetics are outstanding, and it will lead the development of cosmetics industry in future decade.

However, only products by Sino-foreign joint enterprises with lower prices can meet Chinese mass customers' needs. It is really an alarming phenomenon. Chinese companies should set integral development strategies to face challenges and keep competitiveness constantly.

With the development of China's economy and improvement of people's living standards, China will become the largest market of global cosmetics industry. There is no doubt that it will bring many opportunities to cosmetics enterprises.

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