Chinese Color Cosmetics Become More R&D Oriented
- Chaileedo Press
- May 3, 2023
- 2 min read
"Doing R&D is all about differentiation."
GF Securities pointed out in its latest research report that, with the improvement of the epidemic and economic recovery, the color cosmetics industry is expected to see a big rebound in the short term. In the long term, color cosmetics products have more room for improvement in terms of both customer base size and customer unit price. GF Securities sees the innovation and growth of head domestic color cosmetics brands.
According to the latest earnings report of Intercos, the company's revenue in 2022 was €835.6 million ($922.17 million), up 24% year-on-year. Net profit was €45 million($496.61 billion), a 69.5% jump year-on-year. CEO Renato Semerari stated in the earnings report that such a bright performance by Intercos reflects the overall dynamism of the global color cosmetics market is gradually recovering.
The market recovery also means that the competition for cosmetics will become more intense. With nearly 20 years of experience in cosmetics research and development, Li Guangyu from Guangzhou Zaomengying Biotechnology believes that the establishment of a research and development center for makeup brands is to establish their own supply chain.
“Everyone would be produced by the same OEM factory, with similar textures and ingredients, so the prices would not differ much. By establishing our own supply chain, we can control costs and establish our own unique advantages in terms of price and product quality, "he said.
Xiong Yongpan, Director of Xinrong R&D Center Technology, also expressed a similar viewpoint. “Makeup brands and enterprises are doing research and development one after another because they want to solve the problem of product homogenization. The future growth point of makeup will definitely be in this differentiation, which is whether it can solve some of the pain points of consumers. "
Xiong Yongpan believes that if a classic product wants to maintain its vitality, it requires a strong research and development background, and continuous polishing, deepening, optimization and innovation of the product. Makeup companies invest in research and development due to product homogenization and the lack of underlying logical highlights. Therefore, makeup brands and enterprises themselves need to strengthen research and development to empower the brand.
Overall, research and development investment is a long-term issue. In the increasingly fierce market competition environment, whether it is skincare, makeup, or other categories, Chinese local cosmetics companies can only build core competitiveness by doing a good job in research and development construction.
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