The Chinese cosmetics industry is expanding at breakneck speed. For several years now, it has been winning over young consumers thanks to a stronger digital presence. In a recent article, the Euromonitor forecasting agency listed the challenges still facing Chinese supply to continue its local and international expansion.
According to Euromonitor, Chinese brands have been performing well on the market since 2017. They have succeeded in standing out from international players, particularly in the make-up and skincare segment. “Some C-beauty brands recorded growth in the first two or three years after entering the market, but were unable to achieve the same past growth results; sales began to stagnate and decline,” explains the firm. “Once manufacturers suspend advertising or promotions for online purchases, consumers easily turn to other options. As a result, it has become very difficult for companies to maintain their performance and find a second growth curve to ensure a solid position in the sector. They must therefore devise strategies to ensure their long-term existence.”
A more luxurious offer
According to Euromonitor, most Chinese brands are focused on the mass market.
To stand out from the crowd, new start-ups are opting for a more prestigious positioning.
They will invest in the perfume sector. “Compared to other developed markets in Asia, the potential offered by fragrances in China is still enormous. As fragrances become part of consumers’ daily beauty routine, usage per person will increase. New Chinese brands, such as Documents and ToSummer, have also contributed to the …
