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Photo: Takayuki/Shutterstock.com
Photo: Takayuki/Shutterstock.com

According to the World Tourism Organisation UNWTO, China ranked the world’s top tourism spending in 2017 with US$ 258 billion, followed by the United States who spent US$ 135 billion travelling and Germany US$ 84 billion. 

Cosmetics belong to the top three product categories that Chinese buy when they are abroad.

Cosmetic regulations in China

The Safety and Technical Standards for Cosmetics 2015 is the main cosmetic regulation in China. It lists prohibited, restricted and permitted ingredients as well as physical and chemical evaluation methods and testing methods for cosmetics inspection. Product registration is the prerequisite for the official entry into the Chinese cosmetics market. Animal testing for cosmetics that were produced in China and for non-specific cosmetics such as normal skin care, hair care and color cosmetics, nail care, and parfum, has been banned since 2014. Imported cosmetics from abroad, however, still require animal tests. 

A number of new important regulations and guidelines about cosmetics were implemented in 2018. To name a few: 

A filing management process for first imported non-specific cosmetics through 11 Pilot Free Trade Zones (PFTZ) is now available from 8 March 2018 to 21 December 2018. It is designed to shorten the procedure for imports. 

China‘s National Medical Products Administration (NMPA) officially announced that the administrative approval of first-imported non-special use cosmetics has been replaced entirely by filing management nationwide since 10th Nov. 2018.

China Food and Drug Administration (CFDA) is merged with the other two authorities of General Administration of Quality Supervision, Inspection and Quarantine of China (AQSIQ) and State Administration for Industry & Commerce (SAIC). National Medical Products Administration (NMPA) under State Administration for Market Regulation (SAMR) is now responsible for cosmetics, pharmaceuticals and medical devices.

Domestic Responsible Person (RP) is not only responsible for filing management but also for safety and quality of cosmetics which RP has placed on the Chinese market.

Since July 2018, the average import tariff rate of cleaning products and cosmetics has been reduced from 8.4 to 2.9%.

The E-commerce Law has taken effect in January 2019. As a result, the regulation for cosmetics sold on the cross-border e-commerce platforms without product registration still remain.

Retail sales value of Chinese cosmetic market
Retail sales value of Chinese cosmetic market

Facts and figures of the Chinese cosmetics market

Domestic brands are in the mid- to low-end price segments while the products of foreign companies and joint ventures dominate the high-end segment. Foreign brands accounted for nearly 60% of total sales of cosmetics in China. Interestingly enough, though, their sales value amounted up to nearly 90% in 2016. Chinese domestic cosmetic brands performed very well in 2017. This is due to the fact that the demand for cosmetics with different price levels is increasing. Chinese cosmetic companies focus on Chinese traditional medicine concepts and expand into second- and third-tier markets and cities in China. 

The top 4 countries for imported cosmetics in China are France, Korea, Japan and USA. Big conventional brands from these countries have a good reputation and large loyal consumer base, and have been well established in China for years.

Natural-inspired brands, such as L’Occitane and Jurlique, well-known for their strong marketing strategy, are mostly sold in their own concept shops and widely accepted by Chinese consumers.

Cosmeceuticals are achieving a higher market share because their medical properties and the effects that are claimed are gaining in popularity. However, no medical jargon or claims of medical efficacy should be used in packaging or instructions of cosmetic products. Foreign brands such as Vichy, La Roche-Posay, and Avène dominate this category.

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