Future Cosmetic Trend from Current 15 Beauty Clusters
- Chaileedo Press
- Sep 7, 2022
- 5 min read
From the perspective of China's industrial development, cosmetic industry clusters are a product of the cosmetic industry's development to a relatively mature stage. What kind of development trend in the beauty industry is revealed by the beauty industry clusters that have blossomed all over China?
From Oriental Beauty Valley in Shanghai to BeauteVille in Zhejiang, Guangzhou Baiyun Beauty Bay, TaZhuang Beauty Valley in Chengdu. With the rapid development of China's cosmetics industry, it has become a major trend through the establishment of industrial parks to facilitate industrial clusters.
15 "beauty valley" emerged showing the beauty industry clustering into a trend
With the development of China's cosmetics industry to date, industry clustering has become an unstoppable trend. On the one hand, China's cosmetics market is about to reach the trillions-yuan market. On the other hand, the development of industry clustering is more conducive to the beauty industry becoming bigger and stronger with the maturity of the entire cosmetics industry chain.
Driven by both policy and capital, beauty industry clusters are on the rise. According to CHAILEEDO incomplete statistics, at present, 15 cosmetic industry clusters that the government focuses on have been disclosed, of which, Oriental Beauty Valley in Shanghai, Baiyun Beauty Bay in Guangzhou, BeauteVille in Huzhou has developed into the country's three major cosmetic clustering center.
In addition to Shanghai, Guangzhou and the Yangtze River Delta region of Jiangsu, Zhejiang and Shanghai where cosmetic industries developed well, nine industrial clusters have begun to deploy or start construction since 2020. The current industry clustering has formed situations like Oriental Beauty Valley in the east, BeauteVille in the west, Baiyun Beauty Bay and Beauty Huangpu in the South, Future Beauty in the north and Beauty Valley in the center of China, Changsha.
With the gradual improvement of infrastructure and policies, the number of well-known enterprises in beauty industry clusters around the world is increasing. For example, the Oriental Beauty Valley was established in 2015. A number of well-known Chinese and international cosmetics enterprises have gathered such as Shiseido, COSMAX, JALA Group, Chicmax Group, Mariedalgar, etc. There are 82 licensed cosmetic manufacturers in the clusters with the scale of the cosmetics industry nearly 70 billion yuan(about $10 billion). The industrial output value of above-standard enterprises is nearly 40 billion yuan(about $5.7 billion). As the largest beauty industry park in Guangzhou, the Beauty Huangpu has been deployed since 2020 and currently, there are 59 licensed cosmetic manufacturers in the cluster.
The Beauty Valley, located in Changsha, Hunan Province, has introduced and nurtured nearly 30 cosmetic companies and medical equipment companies, led by Oubiao Cosmetics and Benmei Bio, which are expected to achieve an output value of more than 10 billion yuan(about $1.44 billion) in 2022. Among them, the cosmetic upstream and downstream enterprises include Oubiao Cosmetics, Benmei Bio, E&H Biotechnology, Weitai Bio etc.
It can be seen that China's cosmetic industry has experienced the process from OEM to the rise of local brands, and then to the gradual gathering of industries to form cosmetic industrial parks. From ingredients to factories, packaging materials and brands, from research and development, manufacturing to the market, the competitiveness is even stronger when the pace of the whole industry is accelerating more and more.
Focusing on new technologies, new raw materials and new marketing
For now, accelerating the industrial infrastructure, and improving and upgrading the existing cosmetic industry clusters are the key points that each local regional government and Beauty Valleys are making efforts for. After analysis of these 15 cosmetic industry clusters, CHAILEEDO reveals that their development also presents some commonalities, trends and points of difference.
Firstly, they attach importance to the supply chain of cosmetic raw materials, promote the process of localization of raw materials, and focus on the R&D and the key of cosmetics. Plant-specific resources and synthetic biology are the main development direction. For example, Shenzhen released Measures to Promote the High-Quality Development of Health Industry Clusters in Shenzhen, which encourages innovation in cosmetic raw materials, formulations, processes, efficacy assessment and safety assessment and highlights the importance of plant resources with Chinese characteristics. Shandong cultivates cosmetic industry clusters around hyaluronic acid, alginate, polyglutamic acid, peony, rose, burdock and other special products or resource advantages. With technology as the core, it is contributed to building the "Northern Beauty Valley".
Second, improve the industrial supply chain support. The above-mentioned ten cosmetic industrial clusters have created industrial integration public service platforms, such as R&D platform, technology platform, testing platform, marketing platform, live streaming platform, etc.. It aims to solve the problems of enterprises in acquiring cutting-edge technology, ingredients and talents, supply chain, etc. For example, Beauty Valley in Changsha has gradually improved the industrial chain, supply chain and enhanced value chain. The only electronic gas pedal irradiation station in Hunan Province, the first cosmetic efficacy evaluation center and ingredients testing platform in Hunan Province and package material supporting enterprises. All of them have been introduced to provide local supporting support for beauty enterprises. Beauty Valley in Changsha is expected to form an output value of 30 billion yuan(about $4.3 billion) in the 14th Five-Year Plan.
Third, to alleviate the bottleneck of talent shortage and accelerate scientific and technological innovation. In recent years, major cosmetic industrial clusters have taken multiple measures to actively introduce cosmetic professionals with the support of local governments. For example, Ningxiang Economic Development Zone and Hunan Chemical Vocational Technology College have joint hands to build a modern beauty and ingredients industry college. It is the first modern beauty and new materials industry college in central China officially settled in Changsha Beauty Valley deepening the integration of production, learning and research.
Fourth, the transformation and upgrading of OEM enterprises, the development of intelligent manufacturing, flexible manufacturing transformation to enhance production efficiency. Baiyun Beauty Bay develops intelligent manufacturing, flexible manufacturing. It constantly improves the supply of ingredients and packaging materials and other upstream and downstream industries. It also involves financing and leasing, financial services, e-commerce, logistics and distribution and other production services and the introduction of a cosmetics testing center to provide third-party testing services and realize the enterprise cost reduction and efficiency.
In addition to commonalities, major cosmetic industrial parks are also adapting to local conditions, combining local characteristics and showing inclusiveness and differentiation in cluster development.
Shanghai's "Oriental Beauty Valley" is characterized by fashion and high-end, attracting famous brands such as Pechoin, Shiseido and L'Oreal. Chongqing's Western Beauty Valley has the advantage of clustering high-end beauty and cosmetic industries, developing natural Chinese herbal extracts as ingredients for the cosmetics industry. The "Future Beauty City" focuses on six major areas such as cosmetics with special plant resources, customized production pilot, and new cultural creation of beauty, and develops related products and services with the Beauty Health Industry Innovation Demonstration Base as a carrier.
With the simultaneous promotion of several initiatives, the construction of the cosmetic industry clusters has brought into play the advantages of economic agglomeration growth: in 2021, the core area of Shanghai Oriental Beauty Valley achieved a total industrial output value of 8.13 billion yuan(about $1.2 billion), an increase of 12% year-on-year. Among them, the output value of above-standard enterprises is nearly 7.56 billion yuan(about $1.1 billion), an increase of 10.4% year-on-year. As of March this year, the industrial scale of Guangzhou's "Southern Beauty Valley" has exceeded 80 billion yuan(about $11.5 billion), accounting for about half of the total scale of Guangzhou's cosmetics industry.
Driven by the collective atmosphere of the industry clusters and relying on the advantages of the supply chain within the industry cluster, the industrial transformation and upgrading of China's cosmetic industry from simple and crude to leading technology and large-scale development will be accelerated.
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