MAKING MONEY IN CHINA SERIES-SKIN CARE PRODUCTS ARE GETTING HOT IN CHINA
-September 27, 2010
I would like to kindly present to you the Making Money in China Series. This is one in many of which I will post. Therefore, I would like to cordially ask my readers to reply whether they would want more articles that would help them in terms of generating potential business ideas for potentially starting their own business. Otherwise I will move on to writing other business articles.
The Making Money in China Series is, as many would be able to correctly guess, a series of articles based on making money or starting a potential business in China.
Before I begin, I would like to state the following:
” IN NO CIRCUMSTANCES, SHALL SMECHINAHK.COM AND/OR ITS AFFILIATES, INCLUDING ITS STAFF AND DIRECTORS, BEAR ANY RESPONSBILITY FOR ANY DECISION MADE ON THE VIEWS EXPRESSED IN THIS ARTICLE, NOR SMECHINAHK.COM AND/OR ITS AFFILIATES, INCLUDING ITS STAFF AND DIRECTORS, BE LIABLE FOR ANY DIRECT, INDIRECT, INCIDENTAL, CONSEQUENTIAL, SPECIAL, PUNITIVE OR EXEMPLARY DAMAGES ARISING FROM ANY DECISION MADE ON THE VIEWS EXPRESSED IN THIS ARTICLE.”
If you agree to the contents in the above statement, please continue below, for my first article on this series. Otherwise, please kindly leave and browse other articles in this web site.
SKIN-CARE PRODUCTS ARE GETTING HOT IN CHINA
To begin, the first series I will be introducing the idea of selling skin care items predominantly in China. Japanese economist Kenichi Ohmae noted in Beijing that China currently has an aging population of 143 million and that figure will double by 2015.
However, as Ohmae continued to note that at the same time, sales of anti-aging products have globally increased to $100 billion in 2009 and are expected to increase to over $176 billion by 2015, and this craze, he adds, will also happen in China.
The data in this area is compelling. A report by research firm TNS Research International shows that an estimated 68 percent of Chinese consumers agree that spending time and money on their personal appearance is an important aspect of achieving a state of well-being.
A recent report by market research company RNCOS, also adds that the Chinese health and beauty aids market is the second largest in the Asia-Pacific region after Japan and the seventh largest in the world.
Data from RNCOS’ report has also revealed that that an extremely low penetration level and a potential huge consumer demand in China are the two main criterias that are stirring the attention of major skin care manufacturers around the world.
Currently, the most popular type of products that are being sold are facial moisturoizers, and skin whitening or brightening solutions . Serene Wong Serene Wong, CEO of TNS in China said to China News Daily that facial moisturizers are the most popular in China, occupying 69 percent of market sales, while facial cleaners account for 14 percent. Pseudo skincare queen Susie Zhang said Chinese have long considered a white complexion ” as powerful enough to hide a thousand facial flaws.”
In addition, a new trend is emerging in the world’s health- and beauty-care industry in using Chinese traditional herbal products, which are favored by both Chinese consumers and also many other customers around the world. For instance, ganoderma, which is one of the most popular ingredients in Chinese traditional herbal medicine, has been used in many skincare products like YUE-SAI.
THE PLAYERS IN THE INDUSTRY
Despite the popular demand for such skin-care products, investing in this industry in China is a very serious thought as it requires massive investments in both innovation and research. Moreover, international brands from around the World acquire their rivals in China in order to grab a foothold in the Chinese market. In 2003, L’Oreal acquired Chinese local brand Little Nurse, then later acquired another local cosmetic brand YUE-SAI in 2004.In 2008, Johnson & Johnson acquired Beijing Dabao Cosmetics Co Ltd for $337 million.
RNCOS’s report has revealed that there are nearly 3,500 domestic cosmetics makers in China, but the majority of them operate on a small scale. The research firm has also said in their report that “We anticipate that the big foreign and domestic cosmetics makers will adopt the merger and acquisition route to attain inorganic growth in the market. This will translate into a moderate level of industry consolidation and the consumer will benefit via improved product quality at a reasonable price.”
A SKIN CARE WARNING
However, Chen Hongduo, vice-president of the International Society of Cosmetic Dermatology has said to China Daily Newspaper, that he has expressed concern sover the aggressive use of these products by Chinese consumers.
The skin scientist commented in the paper that “China’s booming economy has greatly boosted demand for skincare and health in the country. But some misunderstandings do exist among Chinese consumers when they’re going all out in the pursuit of better skin,”
He also added that while the awareness about skin care and protection has considerably improved in the past few years, but the major problem is that the expectations of consumers has exceeded the current development level of skincare and beauty technologies.
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What’s in a product can help your skin or harm it, depending on the ingredients.
Here’s a page with unbiased skin care product reviews, based on the experiences and findings of members of a test panel. http://www.best-mens-skin-care.com/skin-care-product-reviews.html
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