with the development of global economic integration and the impact of accession to the WTO, the improvement of living standards of the people, China’s cosmetics market is entering a period of unprecedented prosperity, extremely competitive market, sales in 2002 amounted to $ 46 billion. Entire industry from sales, the number of enterprises, technology level, competition in the market, product, marketing, dissemination and other aspects of the great changes there. Huge market space of l ‘ Oréal, Shiseido, LG international cosmetics giant after another, flourished in the Chinese market. Goods, joint ventures and foreign brands, has three world cosmetics market. In the second year of the WTO, the collision of the three forces would though how bright spark? China’s cosmetics market of infinite variables with suspense, dazzling, opportunities and challenges are often surprising, some indicative signs of fundamental change needed to be watched, although the whole cosmetics market goods, joint ventures, foreign goods a 4:3:3 market share of each third of the world situation. However, we regret to see that the high-end cosmetics market is almost entirely foreign brands dominate, the State-owned brand performance concerns, State-owned brand of 40% market today is almost always limited to some low end products, poor in brand-building. According to market research, management of large and medium cities in China about skincare and cosmetics up to more than 1300 species, most joint venture brands, sales account for about half, and purchase of domestic cosmetics sales accounted for 40%. But it is interesting to sales 40% sales for 6%~7% but only the entire cosmetics sales, domestic price of cosmetics can be seen.
upgrade of China cosmetic market competition is bound to promote high levels of commitment, including combinations of disciplines, capital mix, a combination of industry, business combinations.
we envisage, apart from the price war, a price war, services and channel concept of warfare, warfare, capital and talents in warfare, mergers and acquisitions, may complement the file out. A competing campaign is now underway. Mergers, alliances, cooperation between the brand will become the highlights of future market will eventually form the monopoly of a few brands dominate the market.
currently to private enterprise mainly of of growth enterprise face of maximum competition threat is no longer is transnational corporations, and transnational corporations of more force in China market already expand, dang China market more open, large influx of international specialization of SMEs is growth enterprise of maximum threat, competition pressure grows, investment cooperation of opportunities also increasingly more, growth enterprise if wanted to quickly big do strong implementation across type development, capital operations on than past any when are important. High profits attracted a large number of cosmetics market capital seeking business opportunities, a number of industries outside of the enterprises involved, such as the liquor giant Zhi wuliangye group into daily chemical industry, push each other of the United States and Japan company limited established, will be the Japanese line of products, development of functional products, its main brand attitude 30 product series, available in April 2003. Jilin jiuxin pharmaceutical group jiuxin daily-use cosmetics company limited established, like health care function of functional cosmetics market prospects, implementation shifted from pharmaceuticals cosmetics a strategic shift, the company has been committed to professional research except mites, the company which you are mites Ting series huge advertising with a view to fostering markets. Also try wahaha water children cosmetics market, Li Ka-Shing planning to invest in personal care products, Red Earth, seven Wolf of CR SI Jie full step in personal care products market, the natural beauty of Hong Kong listed these diverse businesses in the capital waving long sleeve Interventional cosmetics industry in different ways. World’s biggest cosmetics Group l ‘ Oréal, after investment of 100 million dollars in China, to note China’s cosmetics market of 100 million dollars, on Sun Max travelling production base, located in Suzhou factory II and III projects extended construction. Recently, rumors in Procter and message they wish to purchase Nicole Nivea and Wella AG, no small repercussions in the industry, which in international cosmetics giant Chinese cosmetics market attention, also showed that the old traditional branding is also gradually took to the road of change capital merger and acquisition. All in all, capital is affecting and will overwrite the development course of Chinese cosmetic industry.
on the other hand. Mutual penetration of the line and professional line of products has become a prominent phenomenon in the industry. Cosmetics in general there are two sales channels: first cosmetic line, is a professional line. Cosmetic line major mass retail market, to go to the Department stores, supermarkets, shopping malls, mass media advertising, counter promotions drive sales; professional product lines of beauty salons, manufacturers through agents, shop products to beauty salons, and to provide good after-sales service to beauty salons, such as technical training, Terminal advertising promotions. Professional line products and cosmetic line products to go our separate way, never mixed up with go. But since the Guangdong sentient beings begin to enter the beauty shop, after shanlana went into the beauty market began a two-pronged approach, hold the line had begun to mixed. In fact, in this mixed operation behind is because both sides of industry margins, hopes to move from another on the way to new gains.
in the face of fierce market competition, growing differentiation of domestic famous brand. Obviously exacerbate the polarization of the cosmetics market, cast a shadow over . the prospects for them. High-end market being foreign controlled, low end is a melee of domestic brands. Some have brilliant main brand of the moment or demise or withdrawal as a regional brand. Most of the difficulties in the domestic cosmetics business, because the money into large, many enterprises are reluctant to take risks, resulting in a local brand get into real trouble in the low-end market, will not impact the high-end market. Sixth generation of the latest cosmetics has quickly landed the Chinese market, mainly for cosmetic effect concept. shadow removal in many international brands that represents brand DOBEST Pak
currently domestic brands have price advantages with the network, but with the comprehensive implementation of the strategy of localization of multinational corporations, these advantages will cease to exist. For most brands, go professional road, implementing the strategy of market turnover will be pragmatic, to establish a national famous brands will face even greater difficulties. As sales channel change, especially the contraction in the wholesale market and sells the formation of simple ad consumption era has gone forever, integrating marketing become a new task in the face of domestic enterprises. To every business, and create a strong brand, brand strategy is the only way to develop the future.