Edited by China Merchants: "Beauty consumption upgrading, four-dimensional Perspective layout Golden Racetrack-Cosmetics Industry depth report"
China's cosmetics industry is highly dispersed, and there is a large gap between domestic enterprises and foreign-funded enterprises; foreign capital occupies the high-end market, income growth and gross profit margin are higher than domestic enterprises.
Market situation of Cosmetic Industry in China
The market of beauty and personal care (Beauty and Personal Care) is one of the most competitive areas in China, and the market is highly dispersed. In 2017, the market share of the top 10 companies in the industry accounted for only 38.5%, much lower than the 70% in the United States.
High-end market VS mass market
In the high-end market, foreign investment is absolutely dominant. Although the sales volume of international brands only accounts for 60% of the total sales of cosmetics in our country, the income accounts for 90%. In 2017, among the Top 40 companies, there are only four domestic enterprises, including Infinity, Huanya Technology, Kunming Wulin and Lafang Group, and the rest are foreign-funded enterprises. These four companies have a market share of only 7.7% at the top end of the market.
In the mass market, domestic enterprises are catching up, and their market share is rising rapidly. In 2017, there were 14 domestic companies in Top30, including Shanghai Shangmei, Bailingling, Shanghai Jiahua and Peraia, whose market share in the mass market rose rapidly from 5.1% in 2008 to 23.1% in 2017.
From the perspective of the head concentration trend, the head concentration trend of the high-end market is more obvious, while that of the mass market is more differentiated.
In terms of market size, the market size of mass products is much larger than that of high-end products, but the growth rate of the high-end market is higher than that of the mass market.
Domestic company VS foreign company
From the perspective of e-commerce sales channels, in order to avoid image damage and conflicts of interest of offline agents, foreign-funded enterprises are more cautious about e-commerce sales, while domestic brands are weak in marketing strength. however, online borderless publicity can effectively improve the spread of domestic brands and solve the problem that it is difficult for domestic enterprises to reach middle and high-end customers through traditional channels.
In terms of marketing expense rate, due to the scale effect of foreign-funded enterprises and the collective force of domestic-funded enterprises in marketing, foreign-funded enterprises are lower than domestic-funded enterprises.
In terms of marketing, foreign-funded enterprises prefer to sign famous artists, while domestic-funded enterprises prefer to sponsor named programs.
In terms of R & D investment, domestic enterprises are relatively close to foreign-funded enterprises.
From the perspective of income growth, the growth rate of domestic enterprises is obvious and fluctuating, because the competition in the high-end market places more emphasis on offline experience than in the mass market and the high-end market, which reduces the impact of e-commerce on offline channels. The growth rate of foreign-funded enterprises remains relatively stable.
In terms of gross profit margin, there is a large gap in gross profit margin between domestic and foreign enterprises. The gross profit margin of foreign-funded enterprises is higher than that of domestic enterprises, and the leading range is stable at more than 10%.
In terms of inventory turnover, domestic enterprises are generally ahead of high-end foreign enterprises.
Recommend following companies:Peraiya, Shiseido,Procter & Gamble Co、Shanghai Jiahua, L'Oreal,Estee Lauder
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