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China’s cosmetics suppliers invest to conquer new markets

China’s suppliers of beauty and cosmetic products are investing heavily in order to tap into new markets, according to a new market report from Global Sources, a market research company specializing on Greater China.

Entitled China Sourcing Report: Beauty & Cosmetics, the report covers makeup products, and their application brushes and tools, as well as skin and nail care, cosmetic bags and cases, and facial appliances. According to the authors, Chinese beauty suppliers are confident of generating more orders in the year ahead and are investing accordingly.

Manufacturers in China’s beauty and cosmetics industry eagerly anticipate export growth of at least 20 percent in the next 12 months,” highlights Livia Yip.

Recent data indicate that companies are on their way to meeting this goal. According to industry estimates exports of make-up and skin care products raised by 22 percent year-on-year to US$358 million in January-June 2010. China customs statistics confirm the trend, with shipments in the brushes, applicators and nail care line soaring by 34 percent to US$55.4 million in January-May 2010.

Suppliers expect to compensate slow growth perspectives in the United States and Europe “by tapping much deeper into emerging markets such as Asia, the Middle East, Russia and South America”.

The effort to attract more buyers includes venturing into new product lines in particular in the natural segment. Chinese companies are increasingly using natural ingredients, and are purchasing special machinery for production of natural, organic and mineral cosmetics that are rising in popularity. They also invest in innovative packaging.

Despite this optimism, surveyed Chinese supplier also points difficulties, including rising labour costs, stricter overseas standards, design piracy and the yuan-U.S. dollar exchange rate.

The report is available for purchase at:

© 2010 - Premium Beauty News -
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