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China Cosmetics Retailing Business Model and Investment Opportunity Report, 2013-2017

China Cosmetics Retailing Business Model and Investment Opportunity Report, 2013-2017

China Cosmetics Retailing Business Model and Investment Opportunity Report, 2013-2017

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  • Table of Contents

  • Content Summary

China Cosmetics Retailing Business Model and Investment Opportunity Report, 2013-2017

Chapter 1: Development Overview and Environment Analysis of China Cosmetics Retail Market

1.1 Definition and Scope of Cosmetics Retail

1.2 Analysis of Development of Cosmetics Retail Market

1.2.1 Development Overview of Retail Industry

1.2.2 Development Features of Retail Industry

1.2.3 Market Size of Cosmetics Retail

1.2.4 Analysis of Sales Methods for Cosmetics Retail

1.2.5 Features of Cosmetics Retail Market

1.2.6 Analysis of Operation of Cosmetics Manufacturing Industry

(1) Analysis of Operational Efficiency

(2) Analysis of Profitability

(3) Analysis of Operational Capability

(4) Analysis of Debt-paying Ability

(5) Analysis of Development Capability

1.3 Analysis of Development Environment for Cosmetics Retail Market

1.3.1 Analysis of Policy Environment for Industry

(1) Tendency of Policies Related to Industry

(2) Development Planning of Cosmetics Industry

1.3.2 Analysis of Economic Environment for Industry

(1) Macro-economic Environment Status

(2) Macro-economic Environment Trend

1.3.3 Analysis of Social Environment for Industry

(1) Coordination between Industry Development and Social Economy

(2) Regional Unbalanced Problems in Industry Development

1.4 Analysis of Consumer Behavior in Cosmetics Retail Market

1.4.1 Development Overview of Cosmetics Retail Market

1.4.2 Analysis of Cosmetics Consumption for Citizens in Major Cities

1.4.3 Cosmetics Purchase Ratio of Citizens in Different Features

(1) Analysis of Purchase Ratio of Citizens by Sex

(2) Analysis of Purchase Ratio of Citizens by Age

(3) Analysis of Purchase Ratio of Citizens by Education Background

(4) Analysis of Purchase Ratio of Citizens by Income

1.4.4 Cosmetics Consumption Situation of Residents with Different Media Contact Frequency

(1) Cosmetics Consumption Situation of Residents with Different TV Contact Frequency

(2) Cosmetics Consumption Situation of Residents with Different Broadcast Contact Frequency

(3) Cosmetics Consumption Situation of Residents with Different Newspaper Contact Frequency

(4) Cosmetics Consumption Situation of Residents with Different Magazine Contact Frequency

(5) Cosmetics Consumption Situation of Residents with Different Network Contact Frequency

1.4.5 Ranking of Various Cosmetics Advertisement Contacted by Urban Residents

Chapter 2: Competition Status of Domestic and Foreign Cosmetic Retail Market

2.1 Development Status and Trend for Global Cosmetics Industry

2.1.1 Analysis of Global Cosmetics Market

2.1.2 Analysis of Key Regional Markets for Global Cosmetics

(1) Analysis of Cosmetics Market in US

(2) Analysis of Cosmetics Market in Japan

(3) Analysis of Cosmetics Market in France

(4) Analysis of Cosmetics Market in Germany

(5) Analysis of Cosmetics Market in Brazil

(6) Analysis of Cosmetics Market in India

(7) Analysis of Cosmetics Market in Africa

(8) Analysis of Cosmetics Market in Russia

2.1.3 Development Situation of Global Cosmetics Brand Enterprises

(1) L'Oreal

(2) Procter & Gamble (P&G)

(3) Estee Lauder

(4) Shiseido

(5) Unilever

(6) LVMH

(7) Chanel

(8) Aritaum

(9) LG Group

(10) Avon

(11) Johnson & Johnson

(12) Japan Kao

(13) Beiersdorf

(14) Revlon

2.1.4 Analysis of Development Trend for International Cosmetics Market

2.2 Major Foreign-funded Cosmetics Retail Enterprises’ Investment Strategies in China

2.2.1 American Mary Kay Cosmetics Co., Ltd.

2.2.2 French L'Oreal Group Co., Ltd.

2.2.3 Shiseido Company

2.2.4 America Avon Cosmetics Co., Ltd.

2.2.5 Procter & Gamble Company

2.2.6 Estee Lauder, Inc. (American company)

2.2.7 Amway Corporation

2.2.8 Unilever UK

2.3 Analysis of Competition Status of Domestic Cosmetics Industry

2.3.1 Analysis of Market Size of Domestic Cosmetics Industry

2.3.2 Analysis of Competitive Landscape of Domestic Cosmetics Industry

2.3.3 Analysis of Bargaining Power of Domestic Cosmetics Industry

(1) Buyer Bargaining Power

(2) Supplier Bargaining Power

2.4 Analysis of Investment/M&A and Capital Reorganization/Integration in the Industry

2.4.1 Overview of Investment/M&A and Capital Reorganization/Integration of Cosmetics Industry

2.4.2 Investment/M&A and Capital Reorganization/Integration of International Cosmetics Industry

2.4.3 Investment/M&A and Capital Reorganization/Integration of Domestic Cosmetics Industry

2.5 SWOT Analysis of Domestic Cosmetics Industry

2.5.1 Analysis of Advantages in Domestic Cosmetics Industry

2.5.2 Analysis of Disadvantages in Domestic Cosmetics Industry

2.5.3 Analysis of Opportunities for Domestic Cosmetics Industry

2.5.4 Analysis of Threats in Domestic Cosmetics Industry

(1) Potential Entry Threats

(2) Substitutes Threats

Chapter 3: Analysis of Channel Models for China Cosmetics Retail Market – Supermarket in Shopping Mall

3.1 Analysis of Counter Channel for Cosmetics in China

3.1.1 Development Status of Cosmetics Counter

(1) Channel Overview

(2) Brand Analysis

(3) Entry Barrier

(4) Cost Constitution

(5) Income Analysis

3.1.2 New Development Trend for Cosmetics Counter

3.1.3 Discussion on Operating Strategies for Cosmetics Counter

(1) Operation Types of Cosmetics Counter

(2) Service Upgrading of Cosmetics Counter

3.1.4 Analysis of Development of Cosmetics Counter in Key Regions

(1) Analysis of Development of Cosmetics Counter in First-tier Cities

(2) Analysis of Development of Cosmetics Counter in Second- and Third-tiers Cities

3.1.5 Analysis of Cosmetics Counter Display

(1) Display Principles of Cosmetics Classification

(2) Display Methods and Related Requirement for Key Position

1) Display Methods and Related Requirement for Show Window

2) Display Methods and Related Requirement for Cash Counter

3) Display Methods and Related Requirement for Store Shelf

4) Display Methods and Related Requirement for End Shelf

5) Display Methods and Related Requirement for Counter

6) Display Methods and Related Requirement for Float and Corrugated Pallet Display

7) Display Methods and Related Requirement for Product Counter

8) Display Methods and Related Requirement for Column

9) Requirement for Various Marks Related to Display

(3) Display Skills for Goods

1) Display Skills in Each Season

2) Display Skills for Theme Products

(4) Steps and Regulations Related to Goods Display

1) Steps for Goods Display

2) Basic Regulations for Goods Display on Shelf

(5) Notice for Goods Display

3.1.6 Development Prospects Dissection on Cosmetics Counter

3.1.7 Counter Dynamics for Parts of Brands

(1) Counter Dynamics for Channel

(2) Counter Dynamics for La Prairie

(3) Counter Dynamics for Fancl

(4) Counter Dynamics for Estee Lauder

(5) Counter Dynamics for Astalift

(6) Counter Dynamics for Orbis

3.2 Analysis of Supermarket and Convenience Store Channel for Cosmetics in China

3.2.1 Development Status of Cosmetics in China Supermarket and Convenience Store Market

(1) Channel Overview

(2) Brand Analysis

(3) Entry Barrier

(4) Cost Constitution

(5) Income Analysis

3.2.2 New Development Trend for Cosmetics in Supermarket and Convenience Store

3.2.3 Discussion on Operating Strategies for Cosmetics in Supermarket and Convenience Store

3.2.4 Development Prospects Dissection on Cosmetics in Supermarket and Convenience Store

Chapter 4: Analysis of Channel Models for China Cosmetics Retail Market - Outlet

4.1 Development Status of China Cosmetics Outlet Market

4.1.1 Channel Overview

4.1.2 Brand Analysis

4.1.3 Entry Barrier

4.1.4 Cost Constitution

4.1.5 Income Analysis

(1) Analysis of Factors of Profit Decline in Cosmetics Outlet

(2) Analysis of Current Profit for Cosmetics Outlet

(3) Core Profit Points for Cosmetics Outlet

4.2 New Development Trend for Cosmetics Outlet Industry

4.3 Discussion on Operating Strategies for Cosmetics Outlet

4.3.1 Operation and Management of Cosmetics Outlet

4.3.2 Analysis of Propaganda for Cosmetics Outlet

4.4 Development Dynamics for Cosmetics Outlet

4.4.1 Watson Group

(1) “My Beautiful Diary Mask” Officially Lands in Watson

(2) Watson Announces Domestic Expansion Plan

(3) Watson Opens No. 1001 Outlet in Taobao

(4) Watson Launches New Arrivals

4.4.2 Citistore

(1) Citistore Enters Guangzhou’s Core Tianhe Financial and Business Circle

(2) Citistore Creates Experience Activities with P&G

(3) Citistore Expanded towards Second- and Third-tiers Cities

4.4.3 Gialen

(1) Gialen’s Development Strategy – “Opening 10 Thousand Outlets with 10 Years”

(2) Gialen Tries to Allowed to Be Joint

4.4.4 Sephora

(1) Sephora Flagship Settles in Nanjing

(2) Sephora Cooperates with Veld’s

(3) Sephora Settles in Wuhan

(4) Sephora Announces Outlet Open Plan

(5) Sephora Starts Digital Reform

4.5 Development Prospects Dissection on Cosmetics Outlet

4.5.1 Re-shuffle Stage Comes to Cosmetics Outlet Industry

4.5.2 Shrinking of Shopping Mall Supermarket Forms A Crowding-out Effect

4.5.3 “Enclosure” of Cosmetics Outlet Accelerates Strategically

4.6 Analysis of Outlet Franchise Model

4.6.1 Concept of Franchise Model

4.6.2 Advantages and Disadvantages for Franchise Model

Chapter 5: Analysis of Channel Models for China Cosmetics Retail Market -

Exclusive Shop

5.1 Development Status of China Cosmetics Exclusive Shop Market

5.1.1 Channel Overview

5.1.2 Brand Analysis

5.1.3 Entry Barrier

5.1.4 Cost Constitution

5.1.5 Income Analysis

5.2 New Development Trend for Cosmetics Exclusive Shop

5.3 Discussion on Operating Strategies for Cosmetics Exclusive Shop

5.3.1 Operation and Management of Cosmetics Exclusive Shop

5.3.2 Increase of Customer Loyalty for Cosmetics Exclusive Shop

5.4 Analysis of Development of Cosmetics Exclusive Shop in Key Regions

5.5 Development Prospects Dissection on Cosmetics Exclusive Shop

5.6 Analysis of Site Selection for Cosmetics Outlet

5.6.1 Significance of Site Selection

(1) Nice Site Selection – A Primary Factor to Succeed in Operation

(2) Significance of Site Selection on Income of Cosmetics Retail

(3) Significance of Site Selection on Growth of Cosmetics Retail

5.6.2 Discussion on Site Selection Theories

(1) Investigation and Research on Necessary Elements for Site Selection

(2) Investigation and Research on Location Environment

(3) Investigation and Research on Customer’s Demand

(4) Investigation and Research on Competitor

5.6.3 Analysis of Procedures for Site Selection

5.6.4 Analysis of Site Selection Practice

(1) Research and Assessment on Business Circle

(2) Analysis of Site Selection for New Stores

Chapter 6: Analysis of Channel Models for China Cosmetics Retail Market - Direct Selling

6.1 Overview of Direct Selling Model

6.1.1 Concept of Direct Selling Model

6.1.2 Advantages and Disadvantages of Direct Selling Model

6.2 New Development Trend and Problems of Direct Selling Model

6.2.1 Depth Thinking for “Counter-cycle” Rule on Cosmetics Direct Selling Enterprises

6.2.2 A Direct Selling Cosmetics Giant Avon Frustrated in China

6.2.3 Bottlenecks in Development of China Cosmetics Direct Selling

6.2.4 Development Trend for China Cosmetics Direct Selling

(1) Industry Consolidation – A Inevitable Trend

(2) Online Direct Selling Becomes A Mainstream for China’s Cosmetics

6.3 Operation and Development of Cosmetics Direct Selling Enterprises

6.3.1 Analysis of Avon (China) Co., Ltd.

(1) Analysis of Development Profile

(2) Analysis of Operation Situation

1) Analysis of Production and Marketing Capability

2) Analysis of Profitability

3) Analysis of Operation Capability

4) Analysis of Debt-paying Ability

5) Analysis of Development Capability

(3) Product Structure and New Product Trend

(4) Sales Channel and Network

(5) Analysis of Operational Advantages and Disadvantages

(6) Analysis of Investment, M&A and Restructuring

(7) Analysis of Latest Development Trend

6.3.2 Analysis of Mary Kay (China) Cosmetics Co., Ltd.

(1) Analysis of Development Profile

(2) Analysis of Operation situation

1) Analysis of Production and Marketing Capability

2) Analysis of Profitability

3) Analysis of Operation Capability

4) Analysis of Debt-paying Ability

5) Analysis of Development Capability

(3) Product Structure and New Product Trend

(4) Sales Channel and Network

(5) Analysis of Operational Advantages and Disadvantages

(6) Analysis of Latest Development Trend

Reporting core values

Major characteristics of this report are forward-looking and timeliness. Base on the forward-looking analysis of massive research data, we further analyze the development scale and competitive landscape of cosmetics industry. Along with the industry development route and our practical experience, we analyze and predict the future development prospect of cosmetics industry. This report is of a high value for enterprises like cosmetics producing corporations, R&D institutions, sales corporations and investment corporations to accurately know the latest industry development trend, and obtain market opportunities and determine an insightful operation strategy and development direction. In the meantime, it is the first heavy weight report to analyze the up/down-stream industry chain and industry leading corporations of cosmetics industry in an overall and systemic way.

Main Contents of report

The consumer goods market in China is in the fast developing period. Consumption will become the strongest driving force of the economic growth as it is referred to an unprecedented level by the “twelfth five years” plan. It is a great chance for the development and innovation of cosmetics retailing.

Firstly, the “twelfth five years” plan shows the guidance to expand domestic demand. It proposes to expand consumption demand. Beyond question, the cosmetics belong to FMCG among the major categories of consumer goods in China. Secondly, the plan adheres to the rule of people’s living comes first that it put the wealth in a more important position. For the first time, the plan proposes a dual synchronization, that is synchronization for the growth of income and GDP as well as synchronization for the laborer’s reward and the growth of labor capacity. The dual synchronization will greatly improve the living standard. Either the cosmetics or other consumer goods have a close relationship with the income. Therefore, the growth of income will greatly promote the development of consumption in China and the whole cosmetic market will be expanding. Thirdly, by emphasizing the development of service industry, the plan discusses about creating environment and promoting the development of service industry by a whole charter. It proposes to expand new areas and new types of operation, cultivates new hotspot and promotes the service management of scale, brand and network. View from all the macro aspects in the “twelfth five years” plan, the retailing and service industry will be promoted to develop.

The average annual growth rate of the sales volume to China cosmetic market is 23.8% since the reform and opening-up for more than 30 years. It peaks at 41% which far higher than that of national economy. Accordingly, we say the cosmetic market with an enormous development potential. The circulation channels of cosmetics are greatly changing especially for the retailing terminal.

The channels for cosmetics are diversified. And the cosmetic market can be named as “warring states period”. It is due to different features for different retailing terminals and the whole circulation channel that all of them are corresponding to different markets and part of target customer group. Besides, there is a sustainable development for traditional marketing channels, department stores and cosmetics special market.

With the development of chain-store operating supermarket in current years, the supermarket terminal to cosmetics shows a fast growing trend and become one of the major channels for cosmetics retailing.

The raise of franchise chain-store shows a booming trend especially in the third or fourth tier cities as the market share ratio keep increasing. Some of the cities even become the mainstream terminal channels for cosmetics selling.

In spite of this, the development of chain corporations which lead by manufacturers plays an important role in the innovation and reform for expanding consumption and promoting cosmetic circulation system. By using new information technology and internet, the network selling of which the online shopping and E-commerce are the representatives develops well. And the number of cosmetics online shopping also shows a trend of rapid growth. The consumption ideologies and consumption model are changing and updating. The 1970s-generation and the 1980s-generation, especially the 1990s-generation become the major consumers. Thereafter, the speed of online shopping will accelerate.

All the changes show that the cosmetic retailing in China will have a time of great development, reform, innovation, division and integration along with the continuously expanding consumption market and fast upgrading consumption structure as well as urbanization.

The trend of China cosmetic consumption will change during the “twelfth five years”. As the consumption capability is strengthening, the total demand of cosmetic consumption will show a fast growing trend. But there will be an adjustment for consumption areas as well as urban and rural structure. For example, the east will maintain a big scale while the growth rate in the mid-west including some rural regions will be speeded up. The cosmetic consumption shows a growing trend in the rural regions while the grade of cosmetic is different from that in urban regions. The improvement of consumers’ taste has a higher requirement for the brand and quality. The requirement is much higher especially for the young and new generation consumers. Together with the quality of product and service, consumers also have the safety consumption requirement. Basing on the enhancing safety consciousness, consumers have an unprecedented safety requirement for cosmetics consumption. The demand of individuation will be fully showed while the requirement of performance will be high. The consumption market will be further divided to satisfy different level, grade and group. And the skin care products or cosmetics are specially designed for the aging, the fashion and young generation and children. Moreover, the service innovation and consumption promotion are also important. The better service provided the more success a corporation will be. The consumption culture and consumption ideologies will be seen in the cosmetic areas.

In the meantime, the cosmetic retailing is facing some challenges as well. Firstly, the market competition will be fierce. Secondly, the cosmetic retailing is challenged by informationization and modernization as well as market expanding capability. The bazaar and franchise store which mainly concentrate in some big cities will penetrate toward the second and third tier cities as well. And it has a high requirement of market expanding capability. Thirdly, the cost of raw material, energy price and especially the employment is increasing. It is a challenge for management and innovation capability, brand value maintenance and consumers’ loyalty cultivation.

The capacity of systematic risk control needs to be improved along with the benefit brought by the development of chain-store or the business will be ruin. The innovation channel divides into marketing innovation and low carbon. And it can be a challenge for corporations. Besides, the honesty and credit operation is also important for corporations. The corporations are challenged by the issue that how to show social responsibility and social value.

The “twelfth five years” plan provides a direction for the service industry and trading and circulation industry. The task, development target and clean policy framework which proposed by the plan provide advantages for the development and circulation of cosmetic market.

Major characteristics of this report are forward-looking and timeliness. Base on the forward-looking analysis of massive research data, we further analyze the development scale and competitive landscape of cosmetics industry. Along with the industry development route and our practical experience, we analyze and predict the future development prospect of cosmetics industry. This report is of a high value for enterprises like cosmetics producing corporations, R&D institutions, sales corporations and investment corporations to accurately know the latest industry development trend, and obtain market opportunities and determine an insightful operation strategy and development direction. In the meantime, it is the first heavy weight report to analyze the up/down-stream industry chain and industry leading corporations of cosmetics industry in an overall and systemic way.

Here, we’d like to express our sincere gratitude to China Association of Fragrance Flavor and Cosmetic Industry, National Statistics Bureau of China, International Information Institute, General Administration of Customs, National Institute of the Ministry of Commerce, National Tsing Hua University Library, Institute of Market Economy of the State Council Development Research Center, and Beijing Qinghua Forward Market Research Center, etc. Thank you so much!

Notice: all the market data, especially the corporation list data in this report is only for business reference. Please don’t take the data for enterprise publicity. Thank you! Or Forward shall not take any responsibility for any consequences!

 

Qianzhan Business Information Co., Ltd. Industry Research Center
Research Team of Cosmetics Industry

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