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Interview Vol. 5 | Analysis of Chinese Cosmetic Market in 2021H1

As the first half of 2021 concludes, what is the market performance and policy environment of the Chinese cosmetic industry? Are there any noteworthy changes after a difficult COVID-19 pandemic? During the interview, Ye Chen, the research analyst from ChemLinked Market Portal will share her insights on the questions and give her suggestions for overseas cosmetic companies that want to enter the Chinese cosmetic market.
1. Could you talk about the general situation of the Chinese cosmetic market in the first-half of 2021?

In the first-half of 2021, the cosmetic sector's total retail sales were 191.7 billion yuan, a YoY increase of 26.6%. The figure in 2020 was 147.7 billion yuan, dropping by 0.2% YoY. 

As for online sales, the cosmetic sector had a great performance in March and June because of two major marketing festivals, Women's Day and the 618 shopping festival. In the rest months, the growth rate of online GMV kept steady.

Brands showed different performances in 2021H1. 

Among domestic brands, Florasis ranked the first for six consecutive months. Its GMV even exceeded L'Oreal and Lancome, the top2 international brands' GMV in April,. Perfect Diary still performed well, whose monthly GMV still maintained at over 200 million yuan, but its growth rate dropped. Another domestic brand, Winona, has become the top 1 domestic skincare brand. In 2021Q2, its online GMV was 510 million yuan, with a growth rate of 33.4%. Winona’s GMV ranked the 10th in the skincare sector, accounting for 1.8% of the entire skincare product sales. Other domestic functional skincare brands, such as BIOHYALUX, Dr. Yu, QUADHA, are all worthy of attention.

As for international brands, L’Oreal, Estee Lauder, and Lancome still dominated the market. Although being exceeded by Florasis in April, their online GMV rebounded quickly in June by taking advantage of the 618 shopping festival.

In conclusion, the Chinese cosmetic market has recovered from the pandemic. Big international cosmetic brands still dominated the market, while emerging domestic brands are catching up.

2. Like you mentioned, the Chinese cosmetic market has recovered from the pandemic, but are there any noteworthy impacts of the pandemic on the Chinese cosmetic market in 2021?
3. As we know, there are two channels to enter the Chinese cosmetic market: general trade and cross-border ecommerce. Compared to the past, are there any changes in policies and environments regarding the two channels this year?
4. Apart from the regulatory changes, from the perspective of market, do you have any suggestions for overseas cosmetic companies that want to enter the Chinese cosmetic market?
5. And for the consumption groups, do you have any suggestions?

About the Expert:

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Ye Chen

ChemLinked Research Analyst

Ye mainly tracks the latest market changes about imported consumer goods in China and the rest of the Asia Pacific area and has published many market analysis articles on the website & provided customized consulting services for clients. Her research and opinions are often quoted by other overseas and domestic media. Areas of expertise: cosmetics, DTC brands, CBD, clean beauty, marketing strategies, fashionable trends, perfume, luxury products.

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