China represents one of the most dynamic and untapped cosmetics and toiletries markets in the world. Last six to seven years have proved highly beneficial for the market when it has undergone rapid transformation and expansion phase. The Chinese cosmetics and toiletries market is the 2nd largest in Asia-Pacific region after Japan and seventh largest in the world. Although the market registered an impressive growth, the country still has high growth potential which is far from its saturation level. Extremely low penetration level and vast consumer base are two key factors that catch the eyeballs of cosmetic manufacturers.
As per our new research report “Cosmetics and Toiletries Market in China”, skincare dominates the overall cosmetics and toiletries market in China. In 2009, the segment acquired almost 40% share and showed no signs of slowdown despite post recessionary scenario. Other segments like hair care, color cosmetics, fragrances, etc have also experienced double digit growth over the recent years.
The market provides opportunities to both homegrown and international players. However, international companies like P&G and L’Oreal are currently leading the Chinese cosmetics and toiletries market. These companies are responsible for generating majority of the industry revenue and are preferred by the consumers over the local companies. Strong and wide product lines along with aggressive marketing strategies have been considered the success mantra proactively adopted by these international cosmetics giants.
Although the Chinese cosmetics market has become highly competitive, there is still a plenty of room for new entrants provided they adopt appropriate market entry strategies, find right manufacturing or distribution partners, use effective marketing strategies, and make suitable products for various customer groups at reasonable price points.
With increasing disposable income, surging working population (especially females) looks conscious approach and strong promotional strategies, we anticipate that the Chinese cosmetics and toiletries market revenue will surpass US$ 31 Billion by 2013. Besides, the CAGR growth projected for the market during 2010-2013 will be the highest among the major Asia-Pacific cosmetics and toiletries markets.