Enterprises should open Chinese lipstick market through social business platform

China's Lipstick market has an average annual growth rate of 17%, which should be paid close attention to. In 2018, the retail trade volume of China's Lipstick market increased by 21.3% compared with the previous year, reaching 13.1 billion yuan. Since 2012, the annual average growth of 7 years has been 17%, showing a sustained growth momentum. Kotra China Hangzhou trade center said that according to the analysis results of the 2019 market trend report of tmall, a Chinese e-commerce platform, targeting 20-30-year-old young female consumers, each person purchases more than three lipsticks a year, and the purchase demand continues to increase. According to the analysis of the import scale of lipstick in recent three years and the trend of top 10 importing countries, the import scale of lipstick in China increased by 47.1% year on year in 2018, reaching 646.7 million US dollars. The main importers are France, Belgium, the United States, Canada and Italy, followed by South Korea, ranking sixth. The total amount of lipstick imported from China to South Korea surged by 474.3% in 2015. By 2017, it showed a trend of substantial growth. However, after 2018, the import volume decreased slightly compared with the previous year, and the market demand is slowing down.

Based on 2018, China's import of lipstick to South Korea decreased by 12.8% year-on-year to US $25824000, and its share in the import market decreased from 6.7% in 2017 to 4% in 2018. According to the analysis, the demand of Chinese female consumers with purchasing power for cosmetics products is increasing, and the high-level cosmetics brands such as the United States and Europe continue to grow. On the contrary, in terms of the popularity of cosmetics brands, the demand for Korean lipstick products at a disadvantage is decreasing. The top 10 brands of lipstick market in China are mainly American, French, Canadian, Korean and other overseas brands. The market share of high-end brands such as YSL, MAC, Armani, channel, Lancome, Dior, etc. is increasing year by year. The offline retail channels of lipstick products are mainly department stores, cosmetics stores, airport duty-free stores, etc. According to the analysis of nbspKotra Hangzhou Trade Center, in order to adapt to the ever-changing environment of China's consumer goods retail market with the network as the center, corresponding marketing strategies should be formulated, and the existing major online shopping websites such as Tmall and Jingdong mall, as well as social platforms such as xiaohongshu and e-commerce platforms should be considered.

In addition, the main consumer groups of lipstick and other makeup products - the post-90s (born in the 90s) and the post-95s (born in the 95s) young female consumers have the tendency to obtain commodity information and decide purchase behavior on various media. We need to communicate with consumers at any time through various SNS and online retail channels and make use of interesting content to promote brand stories continuously. With the implementation of non special cosmetics health license filing system, we hope to improve the export environment of cosmetics. In the past, lipstick and other cosmetics products were subject to export certification (health license) on a piece by piece basis according to SKU (stock keeping unit) of different products, and the entry threshold of products was relatively high. The filing system of health license for non special cosmetics implemented since last year will greatly reduce the preparation time and cost of customs clearance, and improve the export environment.