Zhongtong Bio: There are Still Many Micro-innovation Opportunities for Masks
- Chaileedo Press
- Sep 22, 2022
- 2 min read
Cosmetic companies need to reduce costs while also enhancing product efficacy.
On September 22nd, the 5th Conference on China’s Cosmetics Trends held by CHAILEEDO located in Hangzhou, with the theme of "Winning in Efficacy". CHAILEEDO invited Zhu Hong, General Manager of Guangzhou Zhongtong Biochemical Products Co., Ltd. to talk about the future trend of cosmetics in China.
Guangzhou Zhongtong Biochemical Products Co., Ltd., a supplier of efficacy skincare products solutions, has been engaged in professional OEM business since 1996 and has 26 years of product development experience. Its customers include DR PLANT, Carslan, Hanhoo, HARUKI, RIBECS, etc.
Last year, the Cosmetics Supervision and Administration Regulation were officially implemented. Cosmetics ushered in the most stringent regulation in history.
Zhu said the impact of the new regulations on the brand is multi-dimensional, including product filing time, the difficulty of replacing raw materials or product development cycle, efficacy testing costs, etc.. The rapid iteration, small-scale trial approach is no longer applicable currently, because the regulations require clear efficacy of the product.
In addition, he believes that after the implementation of the new regulations, brand and commissioned processing plants will increase the degree of relevance, forming a bundled relationship. So, how to find a reliable factory? He said that a good factory, the ability is divided into two parts, one is the ability to comply, and one is the ability to operate. And the first anti-risk ability of the factory is tax security.
Zhu also claimed that in the future, for each efficacy product, the net development cost is around 100,000 yuan ($14,100). This is the most vital change of the new regulations for the product.
Therefore, Zhu claimed that cosmetic companies need to both reduce costs and enhance product efficacy at the same time. This requires companies to optimize the organization's staff structure, hire professionals that future regulatory requires, and companies need to build their core strengths capabilities.
Mask is one of the main production categories of Zhongtong Biochemical. About the opportunities in the mask market next year, Zhu believes that companies need to develop different varieties of mask products according to the different functional needs of consumers, in order to meet the needs of different breast groups. He said that there are still many opportunities for micro-innovation in facial masks in terms of mask materials, processing technologies, usage methods, and the enhancement of the efficacy of matching essences.
For efficacy cosmetics, Zhu Hong agreed that Zhongtong Biochemical is still at the primary level and has a wide space to develop. There is only better and no best efficacy products, so the existing Chinese efficacy products can actually be upgraded completely. It is reported that Zhongtong Biochemical invests 10% of its annual turnover in new product R&D, and now has a professional development team of over 30 people.
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