Re­search cen­ter to chase cos­met­ics con­sumers

China Daily (USA) - - BUSINESS - ByWUYIYAO in Shang­hai wuyiyao@chi­

China’s lo­cal cos­met­ics and skin­care brands are in the midst of a pe­riod of up­graded con­sump­tion, ur­ban­iza­tion and sup­ply-side re­forms. Adapt­ing to this will re­quire even closer col­lab­o­ra­tion be­tween cos­met­ics brands and in­gre­di­ent sup­pli­ers to meet con­sumers’ de­mands bet­ter and quicker, said Wil­frid Gam­bade, pres­i­dent of DSM Per­sonal Care & Aroma.

Gam­bade said that mar­ket de­mand for cos­met­ics and skin­care prod­ucts in China is driven by con­sumers who at­tach in­creas­ing im­por­tance to qual­ity, safety and a chang­ing life­style.

This re­quires prod­ucts for an­ti­age­ing, whiten­ing, mois­tur­iz­ing, coun­ter­ing pol­lu­tion, anti-sen­si­tive­ness and other cat­e­gories that are proven to be ef­fec­tive at im­prov­ing skin­care and beauty.

The fast growth trend is re­flected by dou­ble-digit com­pound growth of DSM’s per­sonal care and beauty busi­ness in China, with more than 80 per­cent of its clients in China now be­ing do­mes­tic play­ers.

China has over­taken Ja­pan to be­come the 2nd largest mar­ket for per­sonal care busi­ness world wide, ac­cord­ing to the com­pany’s fi­nan­cial re­port.

China’s im­por­tance was em­pha­sized on Sept 5 when DSM opened its per­sonal care lab in Shang­hai’s

Wil­frid Gam­bade,

pres­i­dent of DSM Per­sonal Care & Aroma ZhangjiangHigh-tech Sci­ence Park. The com­pany switched the lab lo­ca­tion plan from Sin­ga­pore and set­tled on Shang­hai even­tu­ally be­cause China’s mar­ket growth drives not only busi­ness in the do­mes­tic mar­ket, but also growth of sev­eral other mar­kets in the Asia-Pa­cific re­gion, in­clud­ing Ja­pan, South Korea and Aus­tralia, said Gam­bade.

DSM also co­op­er­ates with key opin­ion lead­ers and uses “con­sumer sa­faris”, a kind of re­search method in which re­searchers visit con­sumers’ homes to un­der­stand their spe­cific cos­met­ics needs through in­depth in­ter­views. Do­ing B2B busi­ness in a B2C way bet­ter meets mar­ket trend and con­sumer de­mands, said Gam­bade.

Re­searchers said that China’s beauty and per­sonal care mar­ket has been ex­pe­ri­enc­ing sig­nif­i­cant changes in the past few years, and the mar­ket con­tin­ues to record strong cur­rent value growth, de­spite the slow­down of gen­eral eco­nomic growth and other un­fa­vor­able fac­tors.

Do­mes­tic brands are gain­ing ground and lead­ing to a very com­pet­i­tive en­vi­ron­ment.

Ac­cord­ing to China Food and Drug Ad­min­is­tra­tion data, China has more than 3,800 beauty and per­sonal care cos­met­ics man­u­fac­tures, far sur­pass­ing the num­ber of multi­na­tional play­ers in the coun­try.

Ac­cord­ing to in­dus­try ex­perts, the mar­ket is to be con­sol­i­dated in the fu­ture be­cause stan­dard mak­ers are rais­ing the thresh­olds for the in­dus­try and con­sumers are at­tach­ing to more im­por­tance to qual­ity and safety.

Data from Euromon­i­tor, a mar­ket re­search ser­vices provider, shows that do­mes­tic play­ers, af­ter years of prod­uct de­vel­op­ment, arenow­gain­ing ground, hav­ing reached a com­bined value share of 4 per­cent in 2015 among the top 10 play­ers, up from 3 per­cent in 2011.

Nat­u­ral in­gre­di­ents, an ad­van­tage that sev­eral do­mes­tic play­ers have, are greatly val­ued by lo­cal con­sumers, thus lead­ing to new growth op­por­tu­ni­ties.

For ex­am­ple, Yun­nan Baiyao and Shang­hai Jahwa are widely re­ceived among Chi­nese con­sumers for their “nat­u­ral” in­gre­di­ents con­cepts. For­eign brands in China which also have no­ticed this trend are us­ing in­gre­di­ents such as glacier wa­ter, resver­a­trol, and grape seeds to meet de­mands emerg­ing from this trend, the re­port said.


The booth of Her­borist, which is af­fil­i­ated with Shang­hai Jahwa, at an in­dus­try expo in Bei­jing.

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