《Cosmetic and Personal Care Product Manufacturing in China - Industry Report.pdf》由会员分享，可在线阅读，更多相关《Cosmetic and Personal Care Product Manufacturing in China - Industry Report.pdf（36页珍藏版）》请在三一文库上搜索。
1、CONTENTS Error! No text of specified style in document. April 2012 | 1-800-330-3772 | IBISWorld Industry Report 2672 Cosmetic 85 cosmetics manufacturers were forced to stop production as a result. Foreign enterprises have acquired many domestic brands in recent years. In 2011, Coty Inc. became the
2、 largest shareholder over TJoy. In 2008, German manufacturer Beiersdorf acquired 85.0% of shares in C- bons Daily Chemical Co. Ltd. and Johnson a promising economic environment and increased income levels; and an emerging e-commerce platform for consumption. Overall industry profit is estimated at 7
3、.0% of revenue in 2012. This relatively high profit level is a result of the luxury nature and high value add of industry products. International trade Chinese companies mostly compete at the low end of the market and have weak brands compared to foreign players. Top-grade brands in domestic markets
4、 are mainly foreign brands, except for a few select Chinese brands such as Herborist. Foreign enterprises currently account for a combined market share of about 38.0% of total industry revenue. Chinese exports of cosmetic and personal care products fell 1.0% annually over the five years through 2012
5、, largely due to the global financial crisis and the poor economic climate worldwide. Competing imports increased strongly during the past five years through 2012, at an annualized rate of 18.6%. Imported goods are perceived to be of higher quality, given their advanced technology. And as disposable
6、 income increases, customers have been paying more attention to brands than price. Increased competition in the industry has led to more mergers, acquisitions, and bankruptcies. In 2011 April, Coty Inc. became the largest shareholder of TJoy. In 2008, Germanys Beiersdorf acquired 85.0% of shares in
7、C-Bons Daily Chemical Co. Ltd. and Johnson however, growth will not be as aggressive as it was pre-recession. ACMR-IBISWorld forecasts that exports will grow at annualized rate of 13.7% in the five years through 2017. Meanwhile, the 2007 reduction of the export rebate from 13.0% to 5.0% will limit p
8、rofit growth for export companies. Increasing disposable income levels and brand loyalty will drive demand for top-grade cosmetics from foreign manufacturers. The main competing imports originate from France, Japan, the United States, South Korea, and the United Kingdom. France and the United States
9、 have well-known global brands, whereas Japan and South Korea specializing in high quality products for the Asian population. Competition will force domestic companies to raise the quality of their products, and improve management and operations to match international standards and establish interna
10、tional brands. With the development and expansion of domestic enterprises, imports are forecast to grow slowly over the next five years. In addition, import growth will be somewhat limited by an increasing number of foreign enterprises setting up manufacturing facilities in China. Product trends Ski
11、n and hair care products and cosmetics will continue to dominate the domestic market in the future. The skin care sector is projected to grow the fastest, driven by strong market demand and the development of anti-aging products. Currently, there are few products targeting the mature population, eve
12、n though China has been an aging society since 2000. Natural products will be favored by an increasing number of consumers who are paying more attention to the allergenic and noxious ingredients contained in products. Large companies have started developing new products with natural ingredients inst
13、ead of using chemicals. Ingredients such as rose, which is rich in vitamins A, B, E, K and C, and has a pleasant scent, will grow in popularity. The professional cosmetics market also has large potential. As living standards improve, pursuing health and fashion becomes more prevalent, and the influe
14、nce of changing fashion trends can lead to more consumption. There are over 1.5 million beauty parlors across China, with sales revenue of over $7.0 billion estimated in 2012. However, the quality of professional cosmetics used by many beauty parlors is lacking. More females would go to beauty parlo
15、rs if the quality of cosmetics used was more reliable and the effects more obvious. This large business opportunity is anticipated to bring increased consumption of professional cosmetics. The development of niche markets including male grooming products, products with natural ingredients or medicin
16、al herbs, products for children, products designed for sports and products for professional beauty will contribute to future industry growth. Further, the development of new sales channels, such as chain cosmetics supermarkets, chain brand specialty stores and online shopping, will benefit the indus
17、try. WWW.IBISWORLD.COM.CN Cosmetic these companies are expected to generate 57.8% of total industry revenue. In 2012, competing imports are forecast to account for 12.1% of total domestic demand, higher than the proportion in 2011. This continuous increase is due to local consumers awareness of fore
18、ign cosmetics brands. The globalization level within the Cosmetic and Personal Care Product Manufacturing industry in China is expected to increase in the near future. Many international groups are entering China with advanced technologies and management, increasing competition. Domestic companies a
19、re upgrading their equipment and improving product quality to compete with foreign players. As a result, Chinese products are becoming more accepted by foreign consumers, leading to growth in exports over the next five years. Lastly, major players (mostly foreign) have conducted a series of mergers
20、and acquisitions to increase their market shares. In 2011 April, Coty Inc. became the largest shareholder of TJoy, with a total investment over $ 4 million. In July 2008, Johnson the establishment of a subsidiary to expand its beauty salon business; the establishment of production facilities in fore
21、ign countries; and the development of foreign markets. WWW.IBISWORLD.COM.CN Cosmetic there are now 5,000 Avon product stores and almost 2,000 Avon counters in major shopping centers. Avon China branches exist in 74 medium and large cities. Avon has established a new distribution model integrating th
22、e advantages of retail and single-level direct marketing with Chinese characteristics, which consolidates relationships among stores, direct sellers and Avon. WWW.IBISWORLD.COM.CN Cosmetic there are over 700 specialty stores dedicated to Herborist products in China. In 2011, Shanghai Jahwa was acqui
23、red by Pingan Innovation Capital. At the same time, Shanghai Jahwa also set up a strategic alliance with the Kao Group. Shanghai Jahwa has established a research center jointly with Fudan University, the Shanghai Institute of Pharmaceutical Industry, and Shanghai University of Traditional Chinese Me
24、dicine. The company has also WWW.IBISWORLD.COM.CN Cosmetic & Personal Care Product Manufacturing in China April 2012 30 established partnerships with other large companies. In 2004, it obtained the authorized production and agent rights for Adidas perfume from COTY Cosmetics Co. Ltd. It has also est
25、ablished a joint venture, Sephora (Shanghai) Cosmetics Sales Co. Ltd., with Sephora Company of LVMH. The partnership led to the introduction of the Herborist brand to the European market in 2007. In 2008, Shanghai Jahwa acquired Sichuan Cortry Cosmetics Co. Ltd. Bawang International (Group) Holding
26、Limited Bawang International (Group) Holding Limited is mainly engaged in the production and sales of hair care, skin care and other personal care products featuring Chinese medicinal herbs. It was listed on the Hong Kong Stock Exchange in July 2009. Shampoo and other hair care products contributed
27、about 95.0% to the groups total revenue in 2009. Bawang Group held a market share of 46.3% in the niche market of hair care products featuring medicinal herbs. In 2010, Bawling was accused of having carcinogens in its hair products in 2010. The group operates four major brands: Bawang, Litao, Smerry
28、 and Royal Wind. Bawang accounts for over 90.0% to the groups total sales revenue. The group plans to launch a new brand targeting the cosmetics market. The new product line will also contain medicinal herbs. The group has two production bases located in Guangzhou city. In 2008, Bawang Group had 567
29、 wholesalers and 46 key retailers, covering 28 provincial areas. Revenue of Bawang Group increased from $49.2 million in 2006 to an estimated $260.0 million in 2010, showing extremely high growth rates. Total profit is estimated to have increased dramatically during the period, from $28.3 million in
30、 2006 to $170.7 million in 2010. The strong growth was attributed to the groups differentiated product development, aggressive marketing efforts and surging production capacity. Johnson & Johnson (China) Investment Co. Ltd Cosmetics brands of Johnson & Johnson in China are Dabao and Clean & Clear. I
31、n July 2008, the company acquired Beijing Dabao Cosmetics Co. Ltd. at a total cost of $330 million. Beijing Dabao Cosmetics Co. Ltd. was established in 1999, the result of the transformation of Beijing Sanlu Factory. The Dabao series of cosmetics, launched in 1985, now covers five categories and inc
32、ludes more than 100 kinds of products related to skin care, hair care, cosmetics, fragrances and special use. Due to its steady development and advanced technology, the company generated sales revenue of $141.2 million in 2010. Company profit was stable over the past five years, as it targeted low-e
33、nd product markets. Markwins International Corporation Markwins International Corporation was first registered in the United States in 1984, manufacturing beauty products and accessories. It now has two subsidiaries engaged in cosmetics manufacturing in China: Markwins Cosmetics (Shenzhen) Co. Ltd.
34、and Kunsi Cosmetics (Shenzhen) Co. Ltd. Markwins Cosmetics (Shenzhen) Co. Ltd. was set up in 1994 and is the manufacturing base for the global cosmetics brand Calvin Klein. LOreal China LOreal is the largest cosmetics enterprise in the world with 60,850 employees in 58 countries. It has over 7,000 e
35、mployees in China. In 1996, the company entered the Chinese market and set up a joint venture in Suzhou called Suzhou Shangmei International Cosmetics Co. Ltd. It has now become the largest production base of LOreal in China. In 1999, LOreal China was transformed into a wholly owned foreign company.
36、 WWW.IBISWORLD.COM.CN Cosmetic & Personal Care Product Manufacturing in China April 2012 31 In 2004, another acquisition was completed with famous Chinese brands Mininurse and Yue Sai. LOreal China has now expanded its business in over 400 cities. LOreal brands in China include LOreal, Maybelline, G
37、arnier, Mininurse, Lancome, Biotherm, Helena Rubinstein, Kerastase, Matrix, Vichy and LaRoche-Posay. Procter & Gamble China Co. Ltd Established in 1837, Procter & Gamble (P&G) is one of the largest daily consumable products manufacturers in the world. In 1988, P&G set up its first joint venture in G
38、uangzhou, and in the same year, Head and Shoulders was launched into the market. In 1991, P&G set up its branches in Beijing and Shanghai, which marked its expansion around China. In 1993, Procter & Gamble China was established. As of 2007, P&G has invested over $1 billion in China and employs 4,000
39、 workers. Markwins Cosmetics (Shenzhen) Co. Ltd - financial performance Year Revenue US Million Dollars Growth % change Assets US Million Dollars Growth % change NPBT US Million Dollars 2005 135.0 N/C 73.2 N/C 1.6 2006 140.3 3.9 91.4 24.9 1.0 2007 147.6 5.2 125.9 37.7 1.5 2008* 205.8 39.4 175.1 39.1
40、 15.4 2009* 184.8 -10.2 108.3 -38.1 -8.7 2010* 200.6 8.5 147 35.7 0.8 2011* 214.6 7.0 156 6.2 1.3 SOURCE: ANNUAL REPORT NOTE: *ACMR-IBISWORLD ESTIMATE Shanghai Jahwa United Co. Ltd - financial performance Year Revenue US Million Dollars Growth % change Assets US Million Dollars Growth % change NPBT
41、US Million Dollars Growth % change 2006 285.3 N/C 189.3 N/C 13.0 N/C 2007 297.2 4.2 194.6 2.8 25.0 92.3 2008 358.8 20.7 242.6 24.7 33.2 32.8 2009 368.7 2.8 272.9 12.5 43.1 29.8 2010 457 23.9 313.5 14.9 44.7 3.7 2011* 592 29.5 535.5 17.2 57.7 29 SOURCE: ANNUAL REPORT NOTE: * ACMR-IBISWORLD ESTIMATE W
42、WW.IBISWORLD.COM.CN Cosmetic & Personal Care Product Manufacturing in China April 2012 32 Operating Conditions Capital Intensity The level of capital intensity is medium. The industry employs a large number of workers Advanced manufacturing equipment and technologies are utilized Large players inves
43、t heavily in developing new products The industry employs a significant number of workers. In 2012, there are 330 cosmetic and personal care product manufacturers employing about 85,000 workers. Average employee wages are estimates at $1000 per month in 2012, which is higher compared to many manufac
44、turing industries in China. The industry utilizes advanced manufacturing equipment and technologies to produce high quality products. As the automation level of production improves, the industry will become increasingly more capital-intensive. Large players tend to invest heavily in developing new p
45、roducts to maintain market share. For example, Unilever spent 10 years developing an anti-dandruff product to break the hold of P&Gs Head & Shoulders. Technology & Systems The level of technology change is medium. Technological advances in the Cosmetic and Personal Care Product Manufacturing industr
46、y in China relate to the development of new products. Large players constantly develop new products to maintain their market shares. P&G and Unilever, two of the leading global players, are very competitive in launching new products. Many skin care products were developed in recent years with a focu
47、s on changing trends. For example, the increasing demand for antioxidant and skin-cleansing needs has promoted players to launch various new products with these in mind. Revenue Volatility The level of volatility is high. The industrys high volatility level reflects changes in fashion trends, which
48、greatly affects consumer demand. The industrys susceptibility to oil prices can also affect prices and output levels. The appreciation of Chinas currency has a considerable impact on multinational enterprises such as LOreal. Innovation and technology drive the development of the industry by stimulat
49、ing consumption with new products. Regulation & Policy The level of regulation is heavy and the trend is steady. The Chinese government imposes strict regulations over the Cosmetics Manufacturing Industry. However, since Chinas accession to the WTO, the regulations have been lightened in order to assist enterprises. WWW.IBISWORLD.COM.CN Cosmetic & Personal Care Product Manufacturing in China April 2012 33 The Ministry of Health of the Peoples Republic of China is authorized by the State Council to approv