China Beauty Expo’s Business Alliance Conference brought more than a thousand beauty professionals from Southwestern China together on October 24th in Chengdu. China Beauty Expo’s Business Alliance organized the conference in collaboration with the alliance’s Sichuan, Chongqing, Yunnan, Tibet, and Guizhou branches. Glamourflage chaired the event.
Under an important theme of the conference, Song Caixia, Deputy Director for Training at Glamourflage, Ousia Australia, noted, “In the age of ‘customer-oriented’ products, it’s important to provide products that are really needed by consumers,” According to Song, in addition to powerful organization support for a brand, five key drivers are critical for product success, including brand attributes, product range, global geographic coverage, cross-promotion, and compelling consumer experience.
Insights on Top Selling Products and Product Categories
Chen Min, CBE’s senior researcher and editor-in-chief of C2CC identified make-up, medical cosmetology, oral beauty liquids, anti-aging products, and imported products as the top growth categories for 2018. In his analysis of imported product trends, Chen said that imported cosmetics account for 38% of total retail sales volume. Among imported products, skincare and make-up account for 35% and 42% of sales respectively, and annual growth is topping 20%. From January to July, 2018, imported cosmetics represented 36.1% of the total volume of imported products. France, South Korea, and Japan were the top three sources of imported cosmetics. They were followed by the US, UK, and Italy. The best-selling imported cosmetics are generally priced between RMB 100 and RMB 300.
According to Chen Min, the factors that continue to drive growth in imported products include:
- Lower import tariffs on cosmetics. Since July 1, 2018, China reduced tariffs on skin care, personal hygiene, and hair care products from 8.4% to 2.9% -- a 65.48% drop and the third reduction in import tariffs since 2015.
- Demand for premium products. This demand has been amplified by cross-bordering purchasing, brand promotion, and word-of-mouth marketing via social media channels.
- Rising competition within cosmetics specialty stores. Tariff cuts will increase competition among international and local brands. For example, retail prices for imported make-up removers have already fallen below those for local products.
- Increase in new international entrants. The availability of e-commerce platforms and lower tariffs have led to an increase in the number and variety of imported brands. For example, cosmetics products from countries like Spain and Latvia are now entering China.