Industry Analysis & Industry Trends
The Cosmetic and Personal Care Product Manufacturing industry has posted strong growth over the past decade. China has become one of the largest cosmetics markets in the world and ranks first in Asia. Industry revenue has been growing at an annualized rate of 12.2% in the five years through 2015, to an estimated $19.9 billion. Over the next five years, industry revenue is forecast to grow 3.4% annually, to total $23.6 billion in 2020. Demand for cosmetic and personal care products in China is expected to be medium over the period; as the government continues to build a clean environment, consumption in gifts such as high-end cosmetics continues to decrease.
Chinese cosmetic and personal care product manufacturers mostly compete in lower-end markets.... purchase to read more
Industry Report - Starting a New Business Chapter
Many small and medium-sized enterprises target niche markets or regional markets, where competition is less intense. There are relatively lower barriers to entry in these markets.
For cosmetics manufacturers, product differentiation is one of the main competitive success factors. Existing brands have established high brand identification and loyalty with customers. New entrants need to invest substantially to establish their own brand loyalty.
Distribution networks are a major entry barrier. While major players have control of distribution channels, new entrants have to offer more benefits to distributors to leverage existing distribution networks... purchase to read more