Monday, May 20, 2024

Distribution

Three things moving the Chinese clean beauty market

KOTRA Wuhan Trade Center 'China Eco-Friendly Cosmetics Market Trend' announced
'MZ Generation‧Online‧Review' important...Short clip video marketing is popular

 

'700,000' '600%'.

700,000 is the number of new clean beauty brands that entered Tmall International in 2021. 600% is Tmall's clean beauty sales growth rate as of 2022.

 

Now the world moves in an eco-friendly way. The clean beauty boom is also strong in China. In 2022, the overall sales volume of cosmetics in China declined by 4.5% in 10 years. On the other hand, overseas clean beauty brand sales increased by 26% compared to 2021. China accounts for about 36.5% of the global clean beauty market.

 

The Chinese clean beauty market is led by the MZ generation. It has been found that young people in their 20s and 30s purchase eco-friendly cosmetics after reading user reviews online. As of 2022, basic cosmetics sets sold the most. Essence showed the highest growth rate.

 

The MZ generation, which has emerged as a big hand in the clean beauty market, is very interested in the environment, sustainability, and conscious consumption. You need a strategy to catch them. Short clip video marketing is a representative example. Analysts say that it is also necessary to enter editorial stores such as The Colorist and Wow Color, which are often visited by Zhu Linghou (born in the 90s).

 

This came from the ' China Eco-Friendly Cosmetics Market Trend ' announced by the KOTRA Wuhan Trade Center .

 

Establishment of eco-friendly cosmetics standards in China

Recently, China has started to establish standards for eco-friendly cosmetics.

 

Tmall established eco-friendly cosmetics guidelines in August 2021, and presented specific standards for the first time in China.

 

The Chinese cosmetics brand Yiyezi (一叶子, One Leaf) announced the 'Eco-friendly Cosmetic Natural Index Group Standard' (纯净美妆天然指数团体标准) in May of last year. Twenty related organizations, including the Shanghai Cosmetics Association, also participated.

 

In July of last year, the Guangdong Cosmetic Society announced the 'General Standards for Eco-Friendly Cosmetics' (化妆品纯净美妆通则) with cosmetics associations and companies. The criteria for eco-friendly cosmetics include △ production in a cruelty-free way (such as animal testing) that is harmless to the human body △ transparency of raw materials used in the production process △ minimization of environmental damage after production and use of the product.

 

Currently, there are no international unified standards or definitions for eco-friendly cosmetics. In general, eco-friendly cosmetics refer to products that are △ safe, △ do not test on animals, and △ exclude chemical components harmful to the human body.

 

China is expected to create specific standards for rapidly growing eco-friendly cosmetics.

 

Chinese local brand entry

Chinese brands are also jumping into the eco-friendly cosmetics market. Backed by the world's largest domestic market. There are also increasing cases of aggressive investments by converting existing production lines into eco-friendly cosmetics factories.

 

According to the Tmall survey, 7 local Chinese companies were included in the top 10 list of eco-friendly cosmetics brands in 2022. In terms of sales, most of the top ranks were occupied by foreign brands.

 

According to Chinese cosmetics industry data, 90% of consumers have purchased eco-friendly cosmetics online. Female consumers in their 20s and 30s prefer to read online reviews and purchase rather than trying samples in offline stores.

 

The clean beauty trend started in the US and Europe and spread to China. It is a view that it can be a great opportunity for K-beauty.

 

“The Chinese government implements eco-friendly policies in all directions. This is to achieve a carbon peak in 2030 and carbon neutrality in 2060.”

 

“To succeed in the Chinese eco-friendly cosmetics market, we need to understand the consumption characteristics of Linglinghou (born in the 00s) and Zhulinghou (born in the 90s). Marketing is needed for a generation accustomed to online purchases and short-clip videos. “It is necessary to first consider entering the online market, where the entry barrier is low and consumers’ reactions can be quickly identified,” he said.