Analysis of the Current Situation of the Development of National Beauty

"Since ancient times, even the most beautiful beauty has had to lament their aging, even if the merit of the world's aspirants will eventually have a day of gray hair". People are born with the knowledge and pursuit of beauty, and cosmetics play a key role as a consumer product to meet people's demand for beauty.

In recent years, China's cosmetics industry has flourished and become the second largest cosmetics consumer market in the world.

During this year's Double Eleven, the overall performance of the beauty and skincare category across the network was outstanding, with a category growth rate of 35.5% compared to the same period last year, in which the performance of domestic brands was eye-catching.

The current situation of the development of domestic beauty

Sky Eye data show that as of October last year, the national business scope contains "cosmetics", "makeup", "beauty" and other key words of the survival, in the business enterprise has more than 11 million.

From the data released by the relatively developed regions of the national cosmetics industry, national beauty product is developing rapidly. For example, Zhejiang Huzhou beauty town plans to invest a total of 25 billion yuan to build a comprehensive beauty industry highland, the beauty town has introduced a total of 151 cosmetics and related enterprises so far.

Shanghai beauty industry accounts for half of the country, maintaining a steady growth of 10% in the past five years, of which the Oriental Beauty Valley located in Fengxian, Shanghai has now gathered 2,219 enterprises, including nearly 700 physical enterprises, with 3,000 brand clusters.

Also according to the National Bureau of Statistics, the retail sales of the cosmetics category in 2020 was 340 billion yuan, up 9.5% year-on-year.

From the perspective of the performance of listed companies focusing on cosmetics, Shanghai Jahwa ranks first with revenue of 7.032 billion yuan, followed by Perlaiya, Water Sheep, Bethenny and Marumi, with revenue of 3.752 billion yuan, 3.715 billion yuan, 2.692 billion yuan and 1.745 billion yuan respectively.

In 2021, Shanghai Jahwa, Water Sheep and Perlaiya have released their mid-year financial reports one after another Data (see table), the main revenue was 4.21 billion yuan, 2.119 billion yuan, 1.918 billion yuan, from which we can see that the development trend of national beauty is very optimistic.

The reason for the rise of national beauty

The reason for the rapid rise of domestic beauty, the author believes that the following multiple factors.

First, the main consumer changes, cultural self-confidence highlights. The rise of domestic products in China's consumer market is inevitably linked to economic development, and the fundamental reason behind the high growth of the cosmetics industry is the change of "people".

2020 the RED App report shows that the young beauty content consumer group has a high acceptance of domestic brands. The "Generation Z", represented by the post-95 generation, has gradually become the main consumer group.

Secondly, compared with traditional channels, the Internet has become a new track for the rise of brands, and the precise pushing technology of e-commerce platforms has amplified the promotion efficiency, making it possible for domestic beauty brands to achieve "overtaking".

The first color cosmetics brand with sales exceeding 100 million yuan. In the first day of pre-sale of this year's Double 11, the top 10 highest-selling single products in Li Jiaqi's live room, national products occupy 8 seats, the top five are Natural Hall mask, Sagebrush mask, You Shi Yan face wash, Fu Fu clear face acne patch and Winona mask.

Among them, at the top of the list of natural tang hydration mask sold 1,877,700 copies, sales reached 115 million yuan. In VIA Live, seven of the top 10 single products in the first day of the double 11 pre-sale sales were national products. Among them, the highest-selling Yuzhe Jackfruit mask sold 605,600 copies, with sales of 97.5056 million yuan.

Third, the rise of the national trend has promoted the upgrading of China's manufacturing industry.

In Guangdong Baiyun beauty valley, Shanghai Oriental beauty valley, Zhejiang beauty town formed a cosmetic industry accumulation belt, complete supply chain, complete industrial ecology, manufacturing level and Japan, South Korea, the United States and Europe is gradually narrowing the gap.

As biopharmaceutical and fine chemical talents and equipment enter the cosmetic manufacturing field, China will have higher level OEM (original equipment manufacturer)/ODM (original design manufacturer) factories in the future.

Finally, cosmetic professionals are increasingly favored by companies and are gradually becoming the backbone of production R&D. Graduates from colleges and universities offering cosmetic specialties, such as Jiangnan University, Beijing University of Technology and Industry, and Shanghai University of Applied Science and Technology, are currently in short supply.