Interview: Chinese consumers are the most demanding consumer group in the world

Win in efficacy, welcome the future. On September 22, The 5th CHAILEEDO Conference on China’s Cosmetic Trends hosted by CHAILEEDO was held in Hangzhou.

A&H Cosmetics is global color cosmetics solution content provider. We invited Mr. Tian Yong, President and General Manager of A&H Cosmetics, to discuss the market trend of efficacy products in China with us.

Q: After 8 years of establishment, how did A&H Cosmetics achieve the first place in revenue among local color cosmetics OEMs in China?

A: Our company should be one of the top few in the world, not just number one in China. Whether it's shipment or revenue, I think it's number one. The most important thing is our R&D innovation. Secondly, our quality control. We have a very good quality control system. Third, we have a large production capacity to quickly meet the delivery needs of all our customers around the world.

Fourth, we have a very strong supply chain. Because we are the head OEM in China and we have a very good business reputation, all our suppliers are very cooperative. This stable supply chain is also an integral part of our core competitiveness. That's the (more important) point for me. Then, there is a group of very hard-working colleagues. I think these should be key points.

Q: You also mentioned that your company is more R&D oriented, and there are some voices in the market that feel that Chinese cosmetics are generally marketing-oriented rather than R&D-oriented. What do you think about this phenomenon?

A: Actually, I think it is a false proposition in itself. Why do you say so? I often ask: Many independent brands overseas have no R&D at all. But they still sell very well and no one questions them. In China, why so many (questionable) voice. The future trend is more and more specialized and segmented. Job functions will be separated. We need specific people to do jobs like R&D, production, marketing, etc. The reason that market has such a voice maybe because the growth rate of sales decline.

Many overseas brands do not have R&D at all. Their products are produced by ODM enterprises or external collaboration. Then of course there are companies that focus on R&D will do the core R & D, such as the core monomer ingredients or synthetic ingredients. I think this might work but it has a better way.

Q: You just mentioned in your speech that color cosmetics have entered the sustainable era, what do you think this color cosmetics manufacturers have inspired?

A: (Companies) need to do a lot of technology reserves. because you really want to quickly enter the sustainable era, in fact, many of the current technology is not yet able to reach. They still need time. But it is a long-term thing to do.

Q: You also mentioned that Chinese color cosmetics is a microcosm of global color cosmetics. What's your opinion on this phenomenon?

A: There are so many consumers in China. So there is a wide range of preferences. Chinese consumers are also the most demanding consumer group in the world. They want the perfect product.

Q: You mentioned earlier that the trust from Chinese consumers to Chinese factories and brands. How do you think this can be built?

A: I think it will change in the future. It has changed now. Now, many girls among Chinese consumers would not have used domestic brands 5 years ago. But now very much, basically every girl is using. So that has changed. This is a state of continuous change. This is a must-go development that a country or an industry in the process of development. No one can stop this trend.

Q: What opportunities do you think China's high-end makeup will have at present?

A: First of all, do not deliberately pursue high-end. You should figure out what do your targeted audience exactly want. You should fully understand your targeted audience. And then you can decide whether you will create a high-end cosmetics brands or not.

In fact, there is no high-end and low-end products. Your group determines your product. How do you define your high-end? The selling price? So you find your precise consumer groups, then you decide the positioning of your products.