Beauty in Guangzhou Heaves a Sigh of Relief

After the Chinese beauty industry experienced “the Darkest Hour”, the restriction adjustment in Guangzhou brought new hope to the beauty industry.

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On November 29, an industry insider revealed that "about 65% of the national (China) courier network shutdown". The news immediately aroused the industry's concern.

In the past few days, the news about the national courier shutdown spread on the Internet, and other industry sources complained that "Yunda Express in a nationwide 4,835 outlets have stopped sending packages", "The delivery in China stopped sending a large part of the goods can not be sent out. The New Year will be coming. Every day I suffered a tough time".

“The Darkest Hour” hit e-commerce again. The beauty industry is also almost unable to insist.

Delivery shutdown widely thus complaints from customers

Due to the multi-region restriction, a large area of logistics and courier shutdown. A number of e-commerce industry practitioners on Weibo said that "the current 65% network of couriers in China shutdown". The source of their data is the statement of the cooperative courier company sending to the merchant. It is reported that the main reason for the courier stoppage is concentrated in the network anomaly, epidemic prevention and control, logistics shutdown, public control, of which 99% of the reasons for the epidemic prevention and control.

Rome is not built in a day. The large area of express delivery stoppage lasts a long time. Since November this year, the slow arrival of express delivery has become a key issue of consumer complaints. According to the 2022 Chinese "Double 11" Shopping Festival consumer protection opinion analysis report recently released by the China Consumers Association, during the 25-day monitoring period from October 20 to November 13, a total of 136,000 negative reviews about "courier service issues" were collected, accounting for 24.87% of the total number of complaints, with a daily average of 54,552 pieces. The distribution of information volume showed a low before and after the high trend. The volume of public opinion information was obviously high after November 1, reaching a peak of 81,824 articles on November 12.

"Previously the factory was closed and now the logistics are stopped. It is always impossible to send out the goods." The brand located in Guangzhou also told CHAILEEDO that the goods ordered by consumers during the Chinese Double 11 Shopping Festival have failed to be sent out so far.

At “the Darkest Hour”, the beauty industry in Guangzhou ignites hope

As the national(China) logistics was paralyzed, Guangzhou held a press conference on the prevention and control of the epidemic, saying, "Those who meet the conditions for unsealing should be unsealed in time, and the management of sealing and control should be quickly sealed and unsealed as much as possible." As soon as the words fell, many districts in Guangzhou issued notices to lift the temporary control one after another.

This undoubtedly gives hope to the nearly "suspended" Guangzhou beauty industry rekindled. It will also benefit the entire Chinese beauty industry chain. Many netizens have said "It is exciting", "the express can finally be sent out"

Guangzhou is very important to the Chinese beauty industry. Qixin.com data shows that the Chinese cosmetics companies have 86,239, of which the largest number of enterprises in Guangdong Province, accounting for 25.5% at the end of 2021.

Express logistics is an important part of the supply chain, which is like capillaries to transport nutrients to all organs of the body day and night. And logistics stoppage will inevitably bring a huge impact on all walks of life, more so for Guangzhou, a major beauty province.

"Express stop largely. Two of our warehouses are affected." "Because of the express stop and restriction control, the goods can not be sent out from our warehouse." Industry insiders told CHAILEEDO that due to the impact of factories, store closure control and logistics/courier shutdown, the cosmetic business has been greatly affected.

With the sudden adjustment of Guangzhou's policy, beauty brands, and factories related to cosmetics heave a sigh of relief. "Great, I can inform my customers to stock up." Guangzhou, a responsible person of OEM said excitedly. And many industry insiders who previously reflected CHAILEEDO that stores and warehouses were controlled also said, "Very much looking forward to it, I hope there will be no change." The person in charge of a brand in Guangzhou said, "We have not yet received news of the unlock of the warehouse, so we will see the situation tomorrow and hope that it can really be implemented in place so that we can have a chance to heave a sigh of relief." However, there is also part of the industry said this, "We are moved, but do not dare to move."

After 3 consecutive months of negative growth, the beauty industry is expected to slowly recover

Previously, Haizhu District, Baiyun District and so on in Guangzhou were controlled. The entire cosmetics industry chain was affected. Then, many industry sources that, "Because of the restriction, many ingredients and packaging materials can not be shipped out. Cosmetics companies in other areas have also had an impact. Moreover, many warehouses which belong to some cosmetic brands also can not be sent out their goods to customers." It can be said that the whole industry is involved.

The person in charge of the brand told CHAILEEDO that its company is headquartered in Baiyun District, Guangzhou, and the brand has about 300 chain stores in the country, which was almost crushed by the severe epidemic in Guangzhou and the multi-point outbreak nationwide.

The person in charge said, firstly, because the factory is in Baiyun District, and the recent closure of Baiyun District led to the brand having no way to produce and deliver. New products which were filed recently can not be launched as scheduled. Secondly, as for the transport, due to the logistics and express delivery stop, the products can not be transported to the stores. As for the sales, due to the closure and control, a number of stores are almost in closure. "We need the 3 sides, production, logistics and stores, to be in a smooth situation before we can operate normally."

Obviously, what happened to the above-mentioned brands is just the tip of the iceberg of the cosmetics industry during the epidemic. The winter this year is longer and colder than the previous two years. According to the National Bureau of Statistics, the total retail sales of cosmetics in October this year was 30.9 billion yuan, down 3.7 percent year-on-year, while the total retail sales and growth rate both declined compared to the previous month. The total retail sales of cosmetics from January to October was 308.4 billion yuan, down 2.8 percent year-on-year. Since this year, the total retail sales growth rate of cosmetics has been maintained at the lowest level in five years and has been negative for three consecutive months.

In fact, a number of senior people who have been in the beauty industry for more than 10 years told CHAILEEDO that November and December are often busy in closing periods for the beauty industry every year, with raw materials, factories and brands busy either rushing to deliver their final orders or preparing for next year.

Although many practitioners say “We will see what’s going on next.” Overall, the adjustment of the epidemic prevention policy gives the Guangzhou beauty industry a chance to heave a sigh of relief and gives confidence to the beauty industry. Many people also believe that "with Guangzhou taking the lead, the entire consumer market is also expected to pick up." In this way, the entire cosmetic industry is also expected to slowly recover.