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Domestic cosmetics usher in development opportunities

The scale of China's cosmetics market has risen rapidly, reaching US$69.2 billion in 2019, ranking second in the world, with a year-on-year growth of 13.8%, and the growth rate is far faster than other countries. The latest financial report shows that the overall performance of the industry in 2020 is stable, and the first quarter of 2021 also shows a trend of accelerated recovery.

Li Jie said that in the first quarter of 2021, compared with the situation in the same period of 2019, it can be found that the compound growth of the cosmetics industry compared to 2019 still reached a level of over 10%. This data is much better than many consumer products. The reason behind it The degree of prosperity is high enough.

As for the prosperous level of cosmetics, can it continue? Li Jie's answer is yes. Mainly because the driving force of China's cosmetics industry in the future will come from consumption upgrades in China's lower-tier cities. From the perspective of China's cosmetics competition, it is hierarchical. For example, international brands mainly occupy the first- and second-tier markets, and a large number of domestic brands are located in lower-tier cities. Therefore, the consumption upgrade in such low-tier cities precisely leaves a good development opportunity for domestic brands.

In addition, Li Jie said that the next stage will mainly focus on two directions. First, the industry with a relatively high level of prosperity in the past will continue to be prosperous after judging, such as alcohol, medical and cosmetics, and so on. Second, it is the sector that is repaired after the epidemic, such as some industries that have been heavily affected by the epidemic before, but the fundamentals have been significantly repaired and improved, including textiles and clothing, catering, and so on.