As the first half of 2021 concludes, what is the market performance and policy environment of the Chinese cosmetic industry? Are there any noteworthy changes after a difficult COVID-19 pandemic? During the interview, Ye Chen, the research analyst from ChemLinked Market Portal will share her insights on the questions and give her suggestions for overseas cosmetic companies that want to enter the Chinese cosmetic market.

Keywords: duty free, Tmall Global, Estee Lauder fine, financial result

Chinese cosmetic category’s online GMV in 2021Q2 was 65.739 billion yuan, with a growth rate of 0.06%. Among domestic brands, Florasis and Winona kept a high speed growth, while Perfect Diary was slowing down. Brands from Bloomage Biotech, the hyaluronic acid giant in China, were experiencing explosive growth. International brands were outperformed by domestic brands in April and May, but successfully rebounded in June, implying these brands have better performance and high budget in massive marketing events, such as the 618 shopping festival. Other e-commerce platforms, such as Douyin, Kuaishou, JD, performed well in the beauty sector in Q2. They were good choices for beauty brands.

In the Chinese skincare market, Winona is undoubtedly a dazzling rising star. It was the only domestic skincare brand on the TOP10 best-selling skincare brand list in two major online shopping festivals (11.11 and 6.18) for two consecutive years. Its parent company, Botanee, successfully launched an IPO in 2021, and now this company has become the largest cosmetics company in China by market value. How did this brand, newly founded in 2008, achieve this? ChemLinked research analyst, Ye Chen, did thorough research on this brand and wrote this report to encode the growth secret of Winona.

Keywords:618 report, financing, new product, total retail data

Because of the new generation of parents’ high standards for children care products, the children cosmetic market expects a bright future in China. Although the government still holds a cautious attitude to this category, some domestic brands have already emerged, such as Baby Elephant. Some overseas brands also join the competition, such as Miss Nalla, a famous British brand, which entered Tmall Global at the end of 2020.

EltaMD is an international brand that quickly rises in the Chinese market in recent four years, setting an excellent example for other overseas brands. The success is mainly due to its accurate following of two trends in China: - The consumption upgrade in the cleansing industry; - Consumers’ preference for cosmetics with a medical background.

Supported by investors, the Chinese male cosmetics market is accelerating its expansion. Many newly-founded brands achieved good grades in 2020, while some old brands fell behind. These emerging brands showed great performance for several reasons: clear brand position, affordable prices, attractive selling points, and accurate target consumers.