The Hundred-billion Beauty Industrial Park Making Its Debut in Guangzhou
- Chaileedo Press
- Jul 21, 2022
- 4 min read
Abstract: Recently, the Beauty Huangpu Phase I Project (D District) has been completed and the Beauty Huangpu Showroom was opened. After completion, it is estimated , by 2024, to produce 2 to 3 leading beauty enterprises with an annual revenue of over 10 billion yuan, and 1 to 3 local enterprises with an annual revenue of over 5 billion yuan (USD 740 million).
On the morning of July 19, all eyes were on Huangpu District, where the scale of the high-end daily chemical industry exceeds 100 billion yuan (USD 14.8 billion), the scale of the cosmetics industry exceeds 80 billion yuan (USD 11.84 billion), and the cosmetics output value exceeds 40 billion yuan(USD 5.92 billion), because the day marks a exciting moment for the beauty and health industry of Guangzhou development zone, the Beauty Huangpu Phase I project (District D) was completed with the Beauty Huangpu exhibition hall opening to public.
The project will center on four major fields of health management, aesthetic medicine, WITMED and medical e-commerce, integrate strong enterprises in China and the global health industry, introduce the upper, middle and lower reaches industrial chain of large health that covers technology, research and development, production and other industrial value links; It will pool research institutes, testing centers, headquarters economic zone, industrialization acceleration zone and core technology manufacturing enterprise zone, rely on the development zone's strong support and own industrial resources, progress on the overall planning of Guangdong-Hong Kong-Macao Greater Bay Area, utilize land efficiently, so as to present the "Beauty Huangpu", a first-class health industry clusters in Guangdong-Hong Kong-Macao Greater Bay Area.It will strive to breed 2 to 3 leading beauty enterprises with an annual revenue of over 10 billion yuan (USD 1.48 billion) and 1 to 3 local enterprises with an annual revenue of over 5 billion yuan (USD 740 million) by 2024.
According to the latest figures as of May 12, 2022, Guangdong Province boasts 2,943 licensed cosmetics manufacturers, taking up 56% within China's total.The output value accounts for half of that of the entire industry in our country.Among them, licensed cosmetics manufacturers in Guangzhou account for over 60% of the whole Guangdong province with their locations mainly in Baiyun, Huadu and Huangpu District, respectively building three beauty industrial parks: "Baiyun Beauty Bay" beauty and health industrial park, CBCITY and Beauty Huangpu.In addition, other provinces and cities in the country have also completed some beauty industry parks, including The Oriental Beauty Valley in Shanghai, Beauteville in Huzhou, Future Beauty City in Beijing and West Beauty Valley in Chongqing.
Recent years have witnessed the uprising trend of Chinese beauty industry with local brands mushrooming and booming. According to the National Bureau of Statistics, the “beauty value” economy represented by cosmetic products has registered a retail consumption growth rate of nearly 14% in 2020, and the consumption reached a staggering 340 billion yuan (USD 50.32 billion). China's consumption of cosmetics per capita is USD 43, which is far lower than that in countries like the United States, Japan, and Korea where the consumption of cosmetics is relatively mature. And the consumption polulation and the consumption per capita are all on the rise, proving the enormous potentials of the domestic market.The market share of middle and high-end cosmetics is about 30%, and the sales scale is up by 28.08% year on year, a figure much higher than the 6.95% in the mass cosmetics market, which also showcases the robust demand of Chinese consumers for high-end cosmetics.
Capital markets have boosted local beauty brands since 2016; With the rise of “Guochao”, the Chinese fashion trend, consumers are more likely to purchase domestic goods, and homemade beauty brands have been winning more consumers. With the new media bringing forth the dividend of the online traffic, Chinese beauty brands seize the opportunities from livestreaming, short-video, new social media and the like to occupy the market in no time. And there are so many factors propelling the rising new brands rapidly gaining markets by excellent cost-effectiveness. In 2020, the market share of the new and aggressive beauty brands take up 18.9% of our home market.
In terms of manufacturing, Chinese cosmetics manufacturing industry, on the whole, is featured by: low added value products, small-scale enterprises, low-performing brands, redundant links in OEM's process, low industrial concentration of OEM, export product’s manufacturing centered on material and semi-finished links.In June 2020, the Regulations on the Supervision and Administration of Cosmetics was issued to promote high-quality development of China's cosmetics industry, tightening the management of cosmetic materials and products on record and raising the entry threshold for relevant market entities. Some unqualified, non-conforming manufacturers of weak competitiveness who fail to meet the manufacturing standard will face a round of elimination, hence the manufacturing industry will gradually shift from an extensive development to an intensive one.
From the development of Chinese beauty industry and the emerging beauty industrial parks in recent years, we can identify the main development strategy of Chinese beauty industry going forward: first, give great support to domestic brands, to build marketing demonstration platform. Second, step up the building of R&D platforms, establishing a R&D system integrating efforts of enterprises, universities and research institutions in a bid to promote R&D and innovation capability. Third, work to upgrade and reform OEMs, develop smart manufacturing and flexible manufacturing to boost production efficiency. Fourth, attach importance to the supply chain of cosmetics materials, promote the production of domestic materials, which means to channel greater efforts into developing the "original ingredient" for our own cosmetic products.
Comments