Cosmetics In China Case Study
However, a correlation was found in terms of education and incomes. The consumers of natural cosmetics are considered more educated and wealthier than the average consumer (Shim, 1995; Mintel, 2009).
2.1.3 Natural Cosmetics in China
The cosmetics and beauty market is changing in China. Chinese consumers are becoming more interested in environmentally friendly practices and products. The eco-friendly consumption trend in China appears in the increasing popularity of healthy, ecological, and sustainable lifestyles, which has significantly boosted sales of eco-friendly products. With environmental pollution, seen as a threat to people’s health and safety, the number of consumers willing to adopt and able to afford natural cosmetics significantly
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In 2013 the market was worth 146.8 billion of RMB and increased to 186 billion of RMB in 2015. In 2011, cosmetics sales in China accounted for 6.8 percent of the global cosmetics market. In 2015, 3920 companies were qualified to produce cosmetics in China, according to the China Food and Drug Administration During 2007-2015, China’s cosmetics market scale compound annual growth rate was at 15.8 percent, becoming one of the world’s fastest growing markets. In 2017, cosmetics market scale is expected to reach 188 billion of RMB, an increase of more than 28 percent from 2013. However, the market of natural cosmetics in China is not important compared to France. Growth in the natural cosmetics industry is more significant in Europe and the U.S.A. than in Asia.
Unfortunately China is losing its share of the fast growing Asian natural cosmetics market because of ethical and technical issues. For the last two years, the market growth rate declined mainly because of animal-testing methods for cosmetic and personal care products. Having any kind of link to animal testing is too damaging to any brand. Many Western brands of natural cosmetics have withdrawn from the Chinese market because of their opposition to the animal testing
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