What are the opportunities for foreign companies in the Chinese cosmetics market?

Since several years right now, China is becoming unavoidable in the cosmetics industry. The growth figures are impressive and China is becoming the world’s second largest cosmetics consumer market after the american market.

According to Euromonitor, 2014 was the year where we saw the lowest growth rate since 2005. The growth rate for 2014 was 12,3 % which is still very good, obviously.

Why is this market so lucrative in China?

Right now, the major reason is the increase of the income of Chinese household. They are much more inclined to spend more now in these product categories. And this tendency is not only concerning the biggest cities but is also true in second and third tier cities…

What the Chinese consumers are looking for?


Chinese consumers are craving for foreign companies products. Nowadays the market is dominated by major international companies and the domestic brands only accounting for 10 percent of the market.

Today, chinese consumers are looking for qualitative products and they are much more picky than before when it comes to choose their cosmetics products.

That’s why brand reputation is very important for Chinese consumers and brands must be aware of it.

Lancôme chinaThe active cosmetics segments is also on the rise in China. Brands such as Vichy , Lancôme or Bioderma are doing very well here as well.

Natural and green cosmetics is also a tendency that is growing here and a lot of brands try to positioned themself on this segment as it should boom in the coming years.

But the most promising segment will be the male cosmetic market. The forecast for the coming year are really excellent and it should be growing at a faster rate than the female one according to Euromonitor. Actually the male cosmetics market is accounting for 4,6 %.

What are the challenges for foreign companies?


Some domestic brands are more and more capable to compete international brands. Let’s take the example of Shanghai Jahwa, Proya and Marubi which are performing well here in China. Brands wanting to tap into the chinese market will now need to compete with international brands as well as domestic bands. Then it’s very important for new comers to have a distinctive approach and a competitive advantage. Thus, they’ll as well be able to adapt their products to Chinese consumers and complexions.

The crossborder website, a real opportunities for cosmetics brands?

The crossborders websites are more and more popular among Chinese consumers and the cosmetics products are one of the most buy products category on these kind of website.

Crossborder websites allow Chinese consumers to buy foreign products without paying taxes as if they were directly buying on the company own e-commerce website.

For foreign companies it’s also a very good opportunity as they don’t need Chinese business licence to sell into these platforms. Thus, it’s nowadays the best way for them to access and test their products on the Chinese market.

How to promote a cosmetics brands?


Only being present on e-commerce platforms won’t help you to sell your products. You have to communicate, advertise and diffuse your brand values among Chinese consumers.

Oe of the best way to do it is to use the social media, is going to be the best cost effective way to do it. Nowadays in China social media are part of the daily life of almost everyone. It’s therefore an incredible breeding ground to talk to your customers and reach them. But you need to have interesting content and be able to differentiate yourself from your competitors.

The cosmetic market in China is still full of opportunities but you need to implement a real strategy if you want to stand out and you need to be accompany by professionals who have a knowledge of the industry and who will be able to guide you. For more information on how to get into this promising market you can have a look here.

We can help you to set up your strategy, don’t hesitate to contact us.

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2 thoughts on “What are the opportunities for foreign companies in the Chinese cosmetics market?”

  1. Pingback: What is the right sales strategy for my cosmetic Brand in China ?

  2. Pingback: China: a promising Market for Australian Beauty Brands?

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