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Cosmetics Market Essay

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China’s cosmetics market, 2012
March 2013 Fung Business Intelligence Centre

In this issue:

I. Industry overview II. Competitive landscape III. Latest developments IV. Snapshots of sub-sector performance

p. 3 p. 20 p. 31 p. 50

China’s cosmetics market, 2012



Industry Overview
(1) Market size and market segments
(2) Retail price of cosmetics (3) Distribution channels

China’s cosmetics market, 2012


Retail sales value continued to soar in 2012, albeit slightly slower growth against 2011

China’s cosmetics market has registered sustained growth for the past few years. China today is the largest emerging cosmetics market in the world.
According to the National Bureau of Statistics of China (NBS), retail sales of cosmetics of enterprises above designated size* reached 134 billion yuan, up by 17% year-on-year (yoy) in 2012.

However, China’s cosmetic market has demonstrated slightly weakened growth as opposed to 18.7% yoy in 2011.

Exhibit 1: Retail value of cosmetics by wholesale and retail enterprises above designated size*: 2008-2012
1600 1400 yuan (100 mn) 1200 1000 800 600 400 200 0 0% 740 597 16.9% 22.1% 25% 18.7% 1103 1340 20% 17.0% 15% 10% 5%







Sales value

Source: National Bureau of Statistics of China * Designated size: with annual sales of 5 million yuan or above and with an employment of or over 60. China’s cosmetics market, 2012

4 4

Lower-tier cities posted stronger cosmetics sales growth than key cities in 2011

According to China National Commercial Information Centre (CNCIC), cosmetics sales growth in tier 1 cities was 11.3% yoy in 2011, weaker than those realized in tier 2 cities (18.3% yoy) and tier 3 cities (21.4% yoy). A report released by Kantar Worldpanel China in May 2012* also indicated that county level cities and counties posted robust growth at above 20% yoy in the first quarter of 2012, while growth in key...

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