Oct. 5 – The cosmetics sector continues as an important growth engine of China’s fast moving consumer goods (FMCG) market, skincare and make-up sectors in China listed solid growth of 12 and 10 percent respectively last year, the share is higher than the general growth of 3.1 percent in the fast moving consumer goods sector, according to China industry expo in Beijing report.
With skincare and make-up become popular among Chinese middle class working generation, especially Chinese female younger age group consumers are prefer to try international brands, mostly they are the only child in the family, with relatively enough both parents’ income to support them for luxury make-up products. However, facing more choices of brands, the premium products are the main driving the value growth of these sectors. These offerings fresh chances for both international and domestic players in cosmetics sector which are not only for key cosmetics manufacturers but also some small or middle-sized cosmetics division.
Despite strong growth in the cosmetics market, the competitive landscape in China also went through rapid transformation. Consumers today have unprecedented choices available to them thanks to overseas travel and e-commerce, Chinese consumers, with rising disposable incomes, are increasingly willing to try high quality local brands which are also strengthening engagement with consumers through innovative product offer and healthy lifestyle propositions. In the face of the challenging market demand, opportunities remain abundant for both Chinese and international brands to meet the changing needs of Chinese families, especially in the booming lower tier cities. Consumers are embracing natural and safe product concepts. Successful brands differentiate themselves by advocating new concepts, benefits and usage occasions, as well as pure and natural ingredients.
With China new policy-lowers import tax on skincare to shoes to spark domestic demand, Import tariffs for Western-style clothing will be reduced to between 7-10 percent from 14-23 percent, and taxes on ankle-high boots and sports shoes cut in half to 12 percent, the Ministry of Finance said in a statement. Tariffs on diapers and skincare products will drop to 2 percent from 7.5 percent and 5 percent, respectively. With policy stimulating and encourage, at this moment, China cosmetics sector remains a key growth engine in China’s fast moving consumer goods market, especially, Chinese consumers start to pay more attention to brands which composed with element of healthy, efficacy and fun at the same time, that ranked skincare, make-up as a main energy to push China consumer goods growth. For those cosmetics companies, there is a Skincare & Cosmetic Products China Market Report Update available upon request, please contacts DCCC, or email to: email@example.com