On January 17, according to the data released by the National Bureau of statistics, the total retail sales of cosmetics reached 402.6 billion yuan in 2021 and 340 billion yuan in 2020, an increase of 18.41%, the largest increase in the total retail sales of cosmetics in the past eight years.
Not long ago, the State Food and Drug Administration issued the “norms for the quality management of cosmetics production”, which supervised the whole process of product production, put forward higher requirements for cosmetics production equipment and production environment, and raised the threshold for the entry of new brands.
Chen Wen, chief analyst of the large consumption group of Wanlian Securities Research Institute, said in an interview with the Securities Daily that under the influence of the epidemic and stricter supervision and other factors, the total retail sales of cosmetics increased against the trend, mainly related to the continuous expansion of consumer groups and the increasing frequency of consumption. In the medium and long term, there is still room for the improvement of cosmetics penetration and consumption frequency, which will continue to drive the market for the better.
industry growth “key”
From March to June 2021, the total retail sales of cosmetics increased by 42.50%, 17.80%, 14.60% and 13.50% respectively year-on-year, outperforming the growth of total retail sales of society; Although the growth rate began to decline in July and even zero growth in August, the year-on-year growth rate of total retail sales of cosmetics has once again led the zero growth rate of the society since October.
It is worth noting that in 2021, the total retail sales of cosmetics exceeded 30 billion yuan in seven months (March, may, June, September, October, November and December). In November, it reached an annual peak of 57.1 billion yuan, 33.2 billion yuan higher than the lowest value (23.9 billion yuan in July).
Chen Wen told reporters: “Firstly, this is based on the continuous expansion of cosmetics consumption groups, and the rapid penetration of relevant products into the exquisite young generation, resulting in the trend of ‘younger age’, ‘male consumption’, etc.; secondly, from the perspective of consumption frequency, the frequency of Chinese people using cosmetics continues to increase, and the consumption gradually changes from optional to mandatory. Young people’s attention to beauty and appearance promotes the rapid growth of cosmetics consumption.”
Li Jingyi, an analyst in the cosmetics industry, believes that these months almost all appear before and after various “big promotions”: “March 8th women’s Day”, “618”, “double 11” and “double 12”. Promotional activities have become an important driving force to promote the performance growth of the cosmetics industry.
According to the data, thanks to the first big promotion node in 2021, the total retail sales of cosmetics in March 2021 increased by 42.5% year-on-year, the largest increase in 2021.
collection store successfully “broke through”
In terms of channels, due to the epidemic, the live broadcasting industry has developed rapidly in the past two years, and the cosmetics industry has also benefited from it. However, according to the data released by Guoyuan Securities Company Limited(000728) , the turnover of Amoy cosmetics in 2021 was 254.318 billion yuan, a year-on-year decrease of 8.72%.
In this regard, Wu Daiqi, CEO of Shenzhen siqisheng company, told the Securities Daily: “The decline of Taoxi cosmetics has something to do with the decline of the traffic of the whole Taoxi e-commerce. The diversion is mainly reflected in the following aspects: first, it is affected by the live e-commerce of the two short video platforms of quickshake; second, the epidemic has made many social platforms rise, and some goods are sold through social media; third, the rise of cosmetics collection stores has provided more opportunities for young consumers Shopping place selection. “
AI media data show that in 2020, the market scale of China’s cosmetics collection store industry was 41.9 billion yuan, of which new beauty collection stores accounted for 7.6%. It is expected to increase to 15.8% in 2021, and the market scale is expected to reach 13 billion yuan.
Tian liming, vice president of Heda group, believes that the proportion of cosmetics online and offline channels may tend to be stable. Among them, the online has gradually saturated and entered the stage of stock competition. It is difficult to break out again next, but there is no need to worry about collapse.
Nowadays, consumers attach great importance to the functional ingredients of cosmetics. AI media consulting data show that 63.9% and 53.9% of consumers believe that product effect and product composition are important factors in their purchase of cosmetics.
In the past two years, functional skin care products, one of the three giants Bloomage Biotechnology Corporation Limited(688363) of “hyaluronic acid”, have witnessed explosive growth. In 2020, the revenue of the sub product was 1.346 billion yuan, a year-on-year increase of 112.30%, accounting for more than 50% of the company’s total operating revenue for the first time, reaching 51.13%. From 2017 to 2019, the operating revenue of Bloomage Biotechnology Corporation Limited(688363) functional skin care products was only 95 million yuan, 290 million yuan and 634 million yuan respectively.
Chen Wen believes that the reason for the rapid growth of China’s functional skin care market lies in, “From the demand side, affected by environmental changes, increased pressure and improper skin care, Chinese sensitive muscle groups are increasing. At present, Chinese women’s sensitive muscle groups account for 1 / 3; at the same time, under the publicity and education of social media platform, Chinese people’s awareness of sensitive muscle care is gradually increasing; from the supply side, brands, R & D, channels and marketing have built barriers for the industry As a result, the market concentration of functional skin care products is relatively high. Taking the sub track of “skin care products of Dermatology grade” as an example, the market share of the top three and top five brands in terms of business scale reaches 47.4% and 61.7% respectively. With the stricter supervision of the cosmetics industry, the leading enterprises with the advantages of R & D, channel, marketing and brand are expected to be strong. “
