CHICMAX: Bullish on Offline Cosmetic Lifestyle Brands

In the future, we shall choose to slow down, develop products (beauty products) that meet the needs of consumers.

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The beauty industry has encountered various challenges this year. The total retail sales of consumer goods in China for cosmetics was 245.3 billion yuan(about $34.1 billion) from January to August 2022, down 6.4% year-on-year. However, China's efficacy skincare market has been growing rapidly in recent years, with a compound annual growth rate of 23.4%, and is expected to reach 41.1 billion yuan(about $5.7 billion) in 2022. CHAILEEDO invited Lyu Yixiong, founder and CEO of CHICMAX Group, to share with us the cosmetic trends in China.

CHAILEEDO: From your perspective, what is the biggest trend in the cosmetics industry next year?

Lyu Yixiong: It doesn’t make any sense to discuss the trends next year, because it would be great if the corporate can survive next year. I think the era of rip-off is gradually over, and we have to slowly adapt to the stagflation of the economy. Our generation has never suffered the economic stagflation. Since the reform and opening up, our economy has been growing. However, the future environment is definitely not so optimistic. So, I believe it is necessary to take it slow, and every enterprise should find its own way and its suitable development route.

CHAILEEDO: What is the next new channel for beauty industry?

Lyu Yixiong: It will be more difficult to rely on offline channels to sell goods. Since cosmetics are must-have which easily affected by e-commerce. However, e-commerce has become transparent and traditional. Therefore, I’m bullish on offline cosmetic lifestyle brands, but I’m still researching. A lifestyle brand should be built slowly with the goal of 10 years. In the future, we shall choose to slow down, develop products (beauty products) that meet the needs of consumers, and not impose on consumers if they do not need them.