Beauty industry has great development potential and brand building challenges.

Zhang Wei

How to build the core competitiveness of the industry, create a good ecological environment, and promote the high-quality development of the cosmetics industry in China is a topic of concern at the "Oriental Beauty Valley International Cosmetics Conference 2023" held in Shanghai recently.

As the only "cosmetic industry capital of China" in China, Oriental Beauty Valley, located in Fengxian District, Shanghai, has gathered more than one third of cosmetics enterprises in Shanghai, with an industrial scale of nearly 100 billion yuan.

Beauty industry is at the forefront of fashion consumption.

Yolanda, secretary of Fengxian District Party Committee, said that in the past five years, Oriental Beauty Valley has been accelerating from the cosmetics capital of China to the cosmetics capital of the world. By 2022, the number of enterprises above designated size in the beauty and health industry in Oriental Beauty Valley has exceeded 230, and the number of cosmetics production enterprises accounts for 37% of Shanghai’s total, with sales accounting for 40% of the city’s total, and there are more than 3,000 cosmetics brands.

Yolanda said that Fengxian will actively integrate into the construction of Shanghai as an "international consumption center city", accelerate the gathering of innovative elements, vigorously support enterprises with underlying technologies and subversive projects, make every effort to create a market-oriented, rule-of-law and international first-class business environment, deepen industrial policies such as "fund+base", implement the "service package" system of enterprises, boost the healthy growth of enterprises, and promote Oriental Beauty Valley to become the innovation source, investment first choice and fashion consumption of beautiful and healthy industries.

The relevant person in charge of the Ministry of Commerce said at the meeting that consumption is an important engine of economic growth and a direct manifestation of people’s needs for a better life. In recent years, the cosmetics consumption market in China has become one of the most dynamic markets, with various new consumption hotspots and changes emerging one after another, with great development potential. Shanghai is speeding up the construction of an international consumption center city, creating a new global product launching place, a global consumption destination and a new landmark of international consumption. Among them, the beauty industry represented by cosmetics has been at the forefront of fashion consumption in China. Fengxian District has made great efforts to build a global launching place and demonstration area for new cosmetics products, and Oriental Beauty Valley has become an important business card representing the beautiful health industry in Shanghai and even China on the international stage. The Ministry of Commerce will continue to optimize consumption supply, improve consumption conditions, innovate consumption scenarios, and inject more new kinetic energy into the high-quality development of the beauty consumer goods industry.

Jointly create a good and orderly market environment

At the "Media Forum of 2023 Oriental Beauty Valley International Cosmetics Conference" held in the same period, participants pointed out that China’s cosmetics industry has developed rapidly and has risen to the second largest market in the world thanks to China’s consumption upgrading and the development of beauty social platforms. In 2022, the total retail sales of China’s cosmetics industry reached 393.56 billion yuan. With the all-round rise of the industry, the competition continues to intensify, and the relevant state departments have issued a series of policies and regulations, which put forward more standardized and standardized requirements for the supervision of the cosmetics industry. However, in the information age of "everyone is a microphone", there are many social media and voices from the media. The public opinion environment facing the development of domestic cosmetics brands is becoming increasingly complex, and the construction of industry brands is facing multiple challenges.

Xue Ke, deputy dean of the School of Cultural and Creative Industries of Shanghai Jiaotong University-University of Southern California, said that technology leads the beauty industry in today’s era, which has brought great influence and marketing changes in the development and dissemination of the beauty industry. The emergence of the era of big data can accurately locate consumer portraits, thus bringing new consumption characteristics to the beauty industry.

"The innovation of technical means such as" accurate portrait "and" immersion experience "on the Internet, the iteration of consumers, the ever-changing public opinion and the changes in market structure have all changed the pattern of the industry market environment. Faced with such changes, beauty companies need to respond to the new environment and new challenges with new ideas and new ideas, and do a good job in brand strategic positioning and brand management strategy from the aspects of creating the ultimate single product, product customization, integration and communication, and surrounding areas. " Xue ke said.

Based on the communication awareness and overall image building of the cosmetics industry, this media forum launched the "China Beauty Escort Action" and the "Joint Initiative of Cosmetic Integrity and Compliance Management" to help the industry develop well.

In response to some industry chaos such as false propaganda, over-packaging, and heavy money marketing, a number of enterprises issued the Joint Initiative on Integrity and Compliance Management of Cosmetics on the spot, and made initiatives from eight aspects, such as complying with the requirements of the Regulations on Cosmetics Supervision and Management and strictly implementing the national standards and related documents of Restricting Over-packaging Requirements of Commodities-Food and Cosmetics, to jointly create a good and orderly market environment and protect consumers’ rational consumption and legitimate rights and interests.