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What is the development status of China's daily chemical industry

ECHEMI 2020-09-02

Daily chemicals refer to daily chemicals, which are scientific and technological chemicals that people use daily, including shampoo, shower gel, skin care, hair care, cosmetics, and so on. According to the frequency or scope of use of the products, they are divided into daily necessities, or daily necessities, luxury goods. According to the purpose, there are toiletries, household products, kitchen and bathroom products, decorative products, cosmetics, bedding, etc.

Daily chemical products are closely related to people’s lives. The industry is supervised by various national regulatory agencies in terms of quality inspection, industry and commerce, health and environmental protection. my country’s daily chemical industry is subject to the General Administration of Quality Supervision, Inspection and Quarantine, National Standardization Administration, Development and Reform Commission, and Ministry of Environment. , Ministry of Industry and Information Technology and other departments. In recent years, the state's supervision of the development of the daily chemical industry has focused on pollution and quality and safety issues. In June 2020, the "Regulations on the Supervision and Administration of Cosmetics" was promulgated, which will come into effect on January 1, 2021. There are clear regulations on the supervision of cosmetics, which will promote its standardized development.

The upstream of the daily chemical industry is mainly the supply of raw materials and packaging materials. The production raw materials mainly include water, palm oil, flavors, emulsifiers, antioxidants, animal and plant additives, etc.; packaging materials mainly include paper packaging, plastic packaging, flexible packaging film bags, etc. my country’s chemical industry has a long history of development. There are no technical barriers to the production of raw materials used in most daily chemical products. There are many raw material manufacturers and the competition is fierce. Most of the raw materials are close to the bottom. A good upstream raw material supply has laid a foundation for the development of my country’s daily chemical industry. solid foundation.


Downstream online marketing promotes industry boom

Under the effect of a stable upstream base of raw materials, the development of the daily chemical industry is relatively stable. Data from China's light industry economic operation and forecast and early warning system show that the daily chemical industry prosperity index fluctuates around 85 points. In February 2020, the daily chemical industry's prosperity index dropped sharply, and then the industry's prosperity gradually recovered. In June 2020, the daily chemical industry prosperity index was 89.89, which was in the "cooling" range, up 0.28 points from May. Among the sub-item prosperity index, the export prosperity index rose to 109.76, which was in the “stable” range, and rose 5.71 points from the previous month.

In response to the epidemic, most daily chemical companies have increased their online marketing efforts, and online channels have become an important layout for daily chemical companies in 2020. According to Proya's annual report, in 2019, Proya's online channel revenue increased by 60.97%, accounting for 53.09%, supporting half of the revenue. Marumi's online channel revenue was 808 million yuan, accounting for 44.89% of total revenue. The growth rate was 22.89%, which exceeded the overall revenue growth rate. In 2020, Lafang Jahwa will increase its distribution in e-commerce channels. Through supply chain platforms such as Pinduoduo, and short video platform channels such as Douyin and Kuaishou, we can seize the traffic dividend of e-commerce live broadcast. In 2020, Shanghai Jahwa will also focus on seizing the new opportunities of e-commerce and following up with new marketing models.

For the daily chemical industry, the construction of a channel network is very important, especially in the context of the current development of online shopping and the optimization of online channels. Balancing online and offline channels, promoting market sinking, and thinking about innovative sales models are issues that need to be considered for corporate development. Especially in this epidemic, downstream online marketing has played a key role in promoting the industry's boom.

Disclaimer: ECHEMI reserves the right of final explanation and revision for all the information.
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