The Chinese cosmetic market has developed fast and the annual average growth rate is 20%. With the upgrade of Chinese consumption levels, the development of the cosmetic industry has been to a new course and it shows very favorable tendency. In the recent years the sales amount of the cosmetic market will increase by more than 13% annually, which is surely faster than the economics growth. The long term potential of the Chinese cosmetic market is fairly vast.
The Chinese high-end cosmetic market is basically dominated by foreign companies and joint ventures. The internationally cosmetic transnational magnates who have the economic strength to favor the Chinese cosmetic market, and they enter the mainland market one after another to build their own manufacturing basis and sales network. Yet the domestic enterprises have smaller scale and lower market share. With the development and enlargement of domestic enterprises and the Chinese cosmetic duty being lower, import quantum being higher after entering WTO, the competence of the Chinese cosmetic market will be more and more severe.
The continuing subdivision and specialization of Chinese cosmetic market will bring the new development space.
