中国化妆品产业的概况及发展策略_英文_

72Journal of Chinese Pharmaceutical Sciences 2005, 14(1) :72-74

Current Status and Development Strategies of

Chinese Cosmetic Industry

LI Xiao -zhu 1, JIANG Bin 2*, WANG Y-i tao 1, and SHI Lu -wen 3*

(1. I n stitute o f Chinese Me dical Sciences , University of Macau, Macau, China; 2. I nternational Resea rch

Cente r f or Medicinal Administration, Pekin g Unive rsity , Bei j ing 100083, China )

Abstract:Current status and existing problems in the C hinese cosme tic industry are analyzed from

the aspects of industry scale, technology and management level, R &Dinvestment and human resources. Strategies to promote the industry are also put forward, such as increasing entry barrier to optimize indus -try structure, tightening regulatory controls to improve quality assurance, fostering innovation and actively exploring modes of collaboration, and training more technical and managing professionals.

Key words :cosmetic; cosmetic industry; development strategies

CLC number:R951. 2; TQ658 Docum ent code :A Article ID :1003-1057(2005)1-072-03

1982the gross industrial product was only RMB 012bi-l

lion yuan, but in 2003it exceeded RMB 52billion yuan, which ranked eighth in the world and second in Asia (just behind Japan) . It is estimated tha t in 2010its sales will reach RMB 80billion yuan [1]. Obviously, the Chinese cosmetic industry has great opportunities to de velop.

Current Status and Prob lems of Chinese

C osmetic Industry

Since the re form and open -up policy in C hina, the Chinese cosme tic industry ha s e xpe rienced rapid gro wth with a yea rly sales increase of over 15%[1](seethe Table 1). In

Table 1 The gross product of Chinese cosm etic industry from 1994to 2003

Gross produc t of Chi nese cos -metic indus try (RMB billion yuan)

Year -on -year growth rate%

1455. 6

1935. 7

2215. 8

25. 315

27. 58. 7

309. 1

33. 511. 7

4019. 4

4512. 5

5215. 6

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

But we should know that, compared with developed countries, the Chinese cosmetic industry is confronted with a series of problems which are important to its c on -tinuous and steady growth.

Enterprises are smal-l scale

Though the technical and capital barriers to ne w en -try into the cosmetic industry are low, marginal profits are relatively high. Therefore, many outside investors have swarmed into this industry. There were about 3000cos -metic producers by 2003, who produced over 25000kinds of cosmetics. Among them, nearly 90%are small

Received date:2004-11-26.

businesses, with yearly sales less than RMB 50million yuan and a total market share of less than 20%1But the overseas and joint ventures, which a mount to less than 20%, covered almost 80%of market share. So many

small enterprises not only create a market chaos, but also hinder the healthy development of the whole industry. Low technology and management caused de -crease in competitive power

Presently, cosmetic G MP has not been enforced in China, where only a few enterprises, mostly foreign ven -tures, have achieved GMP or ISO accreditation. The tec h -nology and management of most native enterprises are be -hind the time and the produc ts have no quality assurance.

Due to the insufficient scale and technology, effec -

Corresponding author:Tel 86-10-82801701,

LI Xiao -zhu, et al :Current Status and Development Strategies of Chi nese Cosmetic Industry 73

tive competition cannot be promoted. Most native enter -prises can only take up the limited primary market. With

the c rush of a great many ne w ventures, they had to strive to make ends meet by price war; consequently, profits decline year by year. Many enterprises even sacrifice the qualities of their products to maintain their profit margins, which actually affected the reputations of the enterprises and the whole industry.

Meanwhile, 27internationally wel-l known cosmetic

ventures had entered China before China . s entry into W TO. After that, import tariffs for cosmetic s reduced from 15%-2213%to 615%-15%gradually, resulting in lo wer prices for imported cosmetic s, which became a further threat to native enterprises. Moreover, instead of only building factories and selling cosmetics in China, foreign ventures became more aggressive:they purchased famous indigenous enterprises, even their entire distribu -tion channels. For example, at the end of 2003, L . Ore -al . purchased /Mini Nurse 0which had ranked third in China . s skin care market; and in 2004Loral . purchased /Yue Sai 0, a popular brand in large and medium size cities. This indicates that the Chinese cosmetic industry will be merged or integrated further.

Lack of R &Dinvestment results in low -level products

Native cosmetic enterprises have small R &Dbud -gets, which leads to repea ted produc tion and then serious product homogeneity at low levels. They depend blindly on fabricating ne w concepts to gain selling superiority. For instance, soon after the successful launch of the /MANTI NG 0skin care series, a number of similar prod -ucts came onto the market. So many similar products re -sulted in an excess of supply. Most foreign ventures have huge, advanced and wel-l equipped research institutes and considerable research funds. For wel-l known ventures, such as L . Oreal . , Shiseido and Revlon, their research funds account for 5%, 2%and 3%respectively of their sales, and their R &Dpersonnel reach 400, 300and 200, respectively. The R&Dprocess for most products lasts for 7-8years before launching into the market. Low tech -nology and lack of innovation are the development bottle -necks for native enterprises.

Quality professionals are scarce

involving numerous disciplines, such as physical chem -istry, surface c he mistry, colloid chemistry, organic chem -istry, spicery chemistry, medicine, bioscience, psycholo -gy, aesthetics and cosmetology. Over 30medical colleges have a Cosmetic Medicine major at a low level, because

most progra ms are offered by 3-year junior colleges and technical secondary schools. There had been no uniform syllabus and teaching materials until July 2002the first set of undergraduate te xtbooks for cosmetic medicine was published. Due to minimal systematic and regular profes -sional education, cosmetic professionals are lacking in both quantity and quality.

Development Strategies

The Chinese cosmetic industry is still in its infancy and it will take a long time and great efforts by both the government and enterprises to develop it. The suggested countermeasures are as follows:

Strengthening entry barriers to optimize the in -dustrial structure

The provisions for low entry barriers prescribed in 1980s and 1990s regulations are no longer suitable in the 21st century. The government agencies should amend the existing regulations on cosmetic manufacturing, supplying and sanitation licensing, and strengthen industry entry barriers to accelerate the recombination of quality industry resource, increase market concentra tion and optimize mar -ket order and industry structure.

Enhancing supervision and promoting the quality control ability of enterprises

No reliable quality, there will be no long -term mar -ket. On the one hand, the government should implement GMP certification to improve the ability in basic mana ge -ment and quality assurance of the cosmetic enterprises; and on the other hand, the government should intensively supervise the industry and strictly punish the lawbreakers, to establish ordered market competition.

Enhancing and establishing new modes of inno -vation

Innova tion is the origin of development. Ne w effec -tive c ooperative means should be taken to escalate inno -vating ability. According to experiences from other indus -tries, c osmetic enterprises should take full advantage of .

74Journal of Chinese Pharmaceutical Sciences 2005, 14(1) :72-74

work together with them to develop innovative products, train enterprise staff to improve their knowledge and skills, cooperate with powerful pharmaceuticd and health -product manufacturers to share technology and human re -source and undertake OE M in the industry by transfer and structure adjustment to bring in advanced tec hnologies and mana gement e xperiences to get ready for further expan -sion.

Improving the education and training of profes -sionals

The government and universities should integrate all related resources to improve the quality and quantity of technical and manage ment professionals by establishing a nor mative education syste m and wel-l planned training pro -

gram to boost the overall quality of enterprise staff and the whole industry.

In c onclusion, the Chinese cosmetic industry faces both great potentials and challenges. A series of policies and counter measures should be proposed, approved and executed to promote the overall progress of the industry.

References

[1]http://www. caffci. com. cn/.

[2]http://info. bjpnet. com/2004-7/2394. h tm.

[3]http://www. cnpharm. com/www/news/94/14167. h tml. [4]Xiao ZY. Explovation on development strategies of Chinese cos -metic industry[J].Sci Everyday Use Chem , 1999, 6(3) :33-355.

[5]http://www. clue. com. cn/news/xwy_shxw/mrjybkjc. htm.

中国化妆品产业的概况及发展策略

里筱竹, 江滨, 王一涛, 史录文

(1. 澳门大学中华医药研究所, 澳门; 2. 北京大学医药管理国际研究中心, 北京100083)

摘要:本文从企业规模、技术管理水平、科研投入、专业人才等方面探讨了中国化妆品产业的现状及存在问题, 并提出了推动我国化妆品产业发展的相应对策, 包括提高市场准入壁垒, 优化产业结构; 加大监管力度, 提升企业的质量管理水平; 重视创新, 积极探讨新型合作创新模式; 加快培养专业技术和管理人才等。

关键词:化妆品; 化妆品产业; 发展策略