The development strategy of Chinese cosmetics suppliers – natural raw material, creative package, shorter quotation valid period

China Sourcing Report: Beauty & Cosmetics shows that the Chinese makeup suppliers are seizing the emerging markets opportunity to enlarge their market share, and the main development trend of cosmetics industry will be natural, organic and mineral cosmetics.

 

Recent customs data indicate that Chinese makeup companies are on their way to meeting this goal. The countrys income from makeup and skin care preparations increases 22 percent to $358 million. Overseas revenue in the makeup brushes, makeup applicators and nail care tools line from January to May climbed 34 percent to $55.4 million.

 

The report shows Chinese suppliers are developing new cosmetics to have more profits; some suppliers said that they have purchased new equipments to manufacturer the popular natural, organic and mineral cosmetics. Also, creative package can help users to apply makeup and use makeup brushes more conveniently and attract more worldwide customers.

 

Suppliers’ strategy to export challenge

Despite of the good prospect, the Chinese makeup brush suppliers also face many challenges. The report said that the labor cost increase is the biggest challenge. Besides, the overseas markets have more and more strict supervision on cosmetics and makeup brushes. The design copyright and exchange rate etc are another concern of most cosmetics suppliers in China.

 

To keep the product competitive ability, the Chinese suppliers are trying to improve equipment, establish more strict quality inspection system, and shorter quotation valid period to reduce the shock caused by exchange rate.

 

The other trends involved in the report including:

• 89% suppliers say they are adding more fund input
• 64% suppliers will use better package
• 52% will increase capacity by improving efficiency
• Some suppliers will make the R&D time shorter
•  More manufacturers aim to develop man skin care products
• Suppliers will enhance the staff training and improve their working efficiency

The Chinese makeup products export value increase by 20%

In Dec 14^th, 2010, a survey report released by a Shanghai newspaper shows that: in the first half years of 2010, the export value of Chinese makeup and cosmetic products reaches $358 million USD dollar, which increase by 22%. And the Chinese makeup suppliers, although very cautious to the traditional European market, are also finding ways to gain new market.

 

Also, due to the cost increase in raw material and labor force, about 85% Chinese makeup suppliers increase their products price, most increase by 5%.

The China Sourcing Report: Beauty & Cosmetics released by Global Sources, involves 27 Chinese makeup suppliers who have been verified to have manufacturing and export license, and 134 types of most popular beauty and cosmetics products, which include cosmetics and makeup brushes used on face, lip and eye, as well as skin and nail care products, makeup roll and beauty tools etc.

 

The publisher of this report said: as Chinese makeup suppliers have successfully entered into the emerging markets like Asian, Middle East, Russian and South American , so  although being very cautious to the traditional European market prospect, they are still very confident that a continued presence in emerging markets will boost export growth in the coming year. Chinese makeup suppliers estimate that sales will rise more than 20 percent in 2011.