Cosmetic Compliance
Intelligence & Solutions
Home / News / Details

Monthly Digest: China Cosmetics Industry Review | March 2020

Market updates

1.       Data from Tmall Global shows that imported hair removal devices became the fastest-growing category during the 3.8 shopping festival this year, with sales up 1140% YoY. Post-95 generation accounts for over 35% of all consumers who purchased hair removal devices, with purchases made by this demographic increasing by 35% YoY.

2.       On March 2, Chando’s limited edition graffiti love lipstick was launched on the brand’s Tmall flagship store. This product is designed by Los Angeles street artist, Trevor Andrew, who is also the designer for the GUCCI Ghost series.

3.       A new brand from Perfect Diary’s parent company, Abby’s Choice, opened its flagship store on Tmall e-commerce platform on March 5. This official store now has a total of 14 products, including facial masks, body cream, face cream, cleansing, etc. Before entering Tmall, Abby’s Choice's main sales channels were WeChat Official Account and WeChat Mini Program.

image001-2.jpgAbby’s Choice

Regulatory compliance

1.       On March 10, Taizhou Administration for Market Regulation released the 2019 cosmetics online sales inspection report. This inspection action covered 435 Taizhou based online stores from 5 top e-commerce platforms and found out some major problems, including incomplete product information, products beyond their shelf life, and the use of false advertisements.

2.       On March 17, a professional cosmetic media, Qingyan, reported that most products being sold on Abby’s Choice’s Tmall Flagship Store didn’t match their filing information. In response, Abby’s Choice removed most products from the store and promised to self-check. On March 26, most products have been re-launched in the store.

3.       On March 18, the National Medical Products Administration (NMPA) issued notices on 37 batches of substandard cosmetics. Among these, some products contain banned ingredients. Hair dyes had a high number of labeling issues. Face masks and cleansing products had issues with an excessive bacterial count.

4.       Tmall Global’s CBEC supervision project “Sampling Inspection within Bonded Warehouse” was officially landed in Ningbo Free Trade Zone in March. It establishes an independent sample retention area in the bonded warehouse to hold samples of all incoming goods. Post-market sampling inspection will be conducted in the warehouse and performed by a third-party agency. The entire project is under the supervision of Ningbo Customs.

Company dynamics

1.       Little Red Book (an e-commerce platform in China) launched its second selling tool for brands (The first selling tool is Official Shopping Mall), a mini-program. The mini-program can be linked to Brands’ official accounts and shown on their posts.

2.       L’Oreal (China) launched its HUGE PLAN. H means horizon, U means you, G means growth, and E means ecosystem. It’s a strategy for L’Oreal (China) to develop in China further. L’Oreal believes that China is going to be the biggest market for the Group.

3.       On March 4, Fancl announced that its new factory located at Qianye County began production. This factory was the Group’s first new factory in 20 years and will produce MCO (mild cleansing oil).

4.       The new domestic makeup brand, House of Cards, has completed Pre-A financing of 20 million yuan. The brand was established in 2019 and uses traditional Chinese design themes in its promotion and packaging design. 

image003-2.jpgHouse of Cards 

5.       On March 15, LVMH Group announced that three major factories producing perfumes and cosmetics for its brands, Dior, Guerlain, and Givenchy, would be converted into producing hydroalcoholic gels for hand disinfection and these products would be provided to French health authorities and hospitals for free.

6.       On March 23, SHISEIDO Group launched its new high-end brand, BAUM. This brand focuses on clean-label sustainably produced products. 90% of the ingredients used in the products are natural ingredients, and the packaging is also made of recycled wood and waste wood generated during the manufacture of furniture.

image005-1.jpgBAUM

7.       On March 27, Fosun announced that its cosmetics industry group has formally acquired a company that owns American skincare brand WEI Beauty, including its three skincare brands, WEI, WEI TO GO, and WEIEAST.

Data browse

1.       On March 16, the data from the National Bureau of Statistics showed that the total retail sales of social consumer goods in January and February was 5.2130 trillion yuan, decreasing 20.5%. The total retail sales of cosmetics in the same period was 38.7 billion yuan, falling 14.1%.

2.       On March 3, Beiersdorf Group released its 2019 financial report. Its sales increased by 5.8% to 7.653 billion euros. Among them, German skincare Nivea grew 3%; Swiss high-end skincare brand La Prairie became the Group's outstanding performance growth engine, and recorded strong organic growth of 20% in 2019.

3.       According to data obtained by management consulting company Bain in conjunction with Alibaba Tmall, from January 25 to February 6, online sales of beauty products fell by 30%, of which high-end beauty products were more affected, with a decline of up to 40%.

4.     Tmall Global data shows that sales of imported sunscreen products increased by 93% year-on-year in the past year. The platform also says about 20 new imported sunscreen brands will be introduced this year, and they are planning to develop ten sunscreen brands with annual sales exceeding 100 million yuan within two years.

5.     On March 16, AMap Travel Warming Report released by AMap shows that in the past month, the willingness to travel in major commercial districts in China has steadily increased, and the passenger flow in major commercial districts has returned to more than 30% of the normal level before the epidemic.

6.     Consumption data from Intime Mall shows that after the resumption of work and production in various places, sales of essential products, eye care, makeup removers, cleansing, and spray products have skyrocketed. “Mask makeup” has brought eye makeup products to the market, and sales have more than doubled. Many eye shadow palettes are sold out.


We provide full-scale global cosmetic market entry services (including cosmetic registering & filing, regulatory consultation, customized training, market research, branding strategy). Please contact us to discuss how we can help you by cosmetic@chemlinked.com
Copyright: unless otherwise stated all contents of this website are ©2024 - REACH24H Consulting Group - All Rights Reserved - For permission to use any content on this site, please contact cleditor@chemlinked.com