Core Insights - The Chinese cosmetics market is experiencing significant growth, with domestic brands accounting for a substantial portion of retail sales, yet individual brand sales remain relatively small [1][3][4] - The need for high-end domestic brands is emphasized as a critical factor for the industry's future development [2][6] - Shanghai is positioned as a global hub for cosmetics, leveraging its advantages in brand aggregation and innovation [2][7][8] Industry Overview - The total retail scale of the top 50 cosmetics brands in China for 2024 is projected to be 233.48 billion yuan, representing 21.74% of the national cosmetics market, which has a total retail value of 1,073.82 billion yuan [1] - Among the top 50 brands, 22 are Chinese, but they only account for 39.98% of the total retail revenue of these brands, which is lower than their overall market share of 55% [1][4] - The average sales scale of Chinese cosmetics companies is 4.116 billion yuan, which is lower than that of companies in the US (5.619 billion yuan) and France (5.22 billion yuan) [1] Market Dynamics - The Chinese cosmetics market has surpassed 1 trillion yuan for two consecutive years, making it the largest cosmetics consumer market globally, with a market transaction total of 1,073.82 billion yuan in 2024, reflecting a year-on-year growth of 2.8% [3] - Domestic brands have seen a rise in market share, with their transaction value accounting for 55.2% of the top 1000 online brands, an increase of 2.9 percentage points year-on-year [3][4] - The number of brands with transaction values exceeding 100 million yuan has reached 819, marking a historical high, with the number of super-large brands (over 5 billion yuan) increasing from 7 to 9 [4] Challenges and Opportunities - The market is characterized by a highly fragmented competitive landscape, with the top 10 brands holding less than 30% market share, indicating weak economies of scale [5] - The industry faces challenges in forming a brand pyramid structure, with a need for more high-end brands to achieve quality development [5][6] - The "14th Five-Year Plan" highlights the importance of cultivating high-end brands in the consumer goods sector, including cosmetics [6] Regional Development - Shanghai has implemented customs support measures to enhance the quality of the cosmetics industry, which includes optimizing inspection processes and improving service efficiency [7] - The city is a leading consumer market, with cosmetics retail sales reaching 56.246 billion yuan in the first five months of the year, growing by 3% [8] - The "Oriental Beauty Valley" in Shanghai has become a significant hub for cosmetics companies, accounting for 37% of the city's cosmetics enterprises and 40% of sales [8] Innovation and R&D - Strengthening R&D, cultural heritage, and brand building are crucial for the rise of domestic cosmetics brands [9] - The industry is focusing on technological advancements and exploring new materials, with a notable increase in the registration of new raw materials [4][9] - Companies are encouraged to integrate biotechnology and modern medicine into their product offerings to enhance competitiveness [10]

Core Viewpoint - The launch of the first national cosmetics industry trade facilitation measures in Shanghai Fengxian represents a significant opportunity for the high-quality development of the cosmetics industry in China, enabling it to keep pace with international fashion trends [1][4]. Group 1: Trade Facilitation Measures - The trade facilitation measures consist of 11 key points focusing on optimizing inspection processes, innovating regulatory models, and supporting import cosmetics testing and research [1][4]. - The measures aim to accelerate customs clearance by implementing a sampling and release strategy for exported cosmetics, allowing for faster processing times [1][4]. - The introduction of a credit mechanism and simplification of import procedures for cosmetics at professional exhibitions are part of the innovative regulatory model [1][4]. Group 2: Market Statistics - Shanghai is the largest port for cosmetics import and export in China, with a total import and export value of beauty and personal care products reaching 25.32 billion RMB in the first five months of this year, accounting for 35.6% of the national total [4]. - The retail sales of cosmetics in Shanghai reached 56.246 billion RMB in the first five months, reflecting a 3% increase compared to the same period last year [4]. - The "Oriental Beauty Valley" in Fengxian district houses over one-third of Shanghai's cosmetics companies, with an expected output value of 14.53 billion RMB in 2024, representing a 13.7% growth year-on-year [4]. Group 3: Industry Impact - The trade facilitation measures are expected to save companies about one-third of their finished product sampling volume and reduce inspection time by over 90% for selected batches [4][5]. - The measures are seen as crucial for enhancing the competitiveness and credibility of Chinese cosmetics companies in the international market [5]. - The implementation of these measures is anticipated to boost confidence among international cosmetics leaders to invest and expand their operations in China [8].

Core Insights - The article discusses the significant transformation faced by Chinese foreign trade enterprises as they shift focus from export to domestic consumption amidst changing global trade dynamics and rising domestic demand [1][6] Group 1: Market Dynamics - China's total export value decreased by 3.8% year-on-year in the first five months of 2025, while retail sales of consumer goods grew by 6.7% in the same period [1] - Many foreign trade factories are abandoning their "Made for Export" labels to target the domestic market of 1.4 billion consumers [1] Group 2: Product Logic and Brand Development - Foreign trade enterprises traditionally operated with a "B-end thinking," focusing on order-based production, but the domestic market requires a "C-end battlefield" approach where consumer engagement and storytelling are crucial [3] - A clothing factory in Dongguan found that size standards for exports to the U.S. needed adjustments for the domestic market, highlighting a disconnect in product understanding [3] - Long-term reliance on OEM has led to a "brand deafness" in foreign trade companies, making it difficult for them to market products effectively in the domestic market [4] Group 3: Channel Strategy and Competition - Foreign trade companies often struggle with channel strategies, facing high entry fees in traditional supermarkets and algorithm-driven challenges in e-commerce [4] - Domestic brands have optimized "cost-performance" ratios, exemplified by Xiaomi's rapid price reductions in TWS earphones, contrasting with foreign trade companies' pricing strategies [4] Group 4: Innovation and Adaptation - Companies are encouraged to innovate product offerings, such as developing scene-specific products and integrating cultural elements into designs to appeal to modern consumers [5] - The establishment of "digital twin factories" and the adoption of advanced technologies like AI and robotics are recommended to enhance supply chain flexibility [5][7] Group 5: Talent and Organizational Structure - Companies are advised to create roles like "Chief Transformation Officer" to oversee domestic sales strategies and recruit younger talent to foster innovation [6] - Implementing a culture of internal entrepreneurship and utilizing management tools like OKR can help bridge the gap between foreign trade and domestic sales teams [7]

Group 1 - Shanghai's retail market shows strong momentum with a year-on-year increase of 85% in tax refund amounts, driven by policy benefits that activate commercial vitality and accelerate the gathering of international brand flagship stores, forming a "siphon effect" [1] - In Q1, Shanghai's tax refund sales reached 760 million yuan, a year-on-year increase of 85%, with inbound tourist numbers expected to reach 6.706 million in 2024, up 84%, contributing to a projected 2.37 billion yuan in tax refund sales [2] - The Swedish outdoor brand CRAFT has entered the Chinese market with pop-up stores in Shanghai and Nanjing, featuring immersive experiences for customers [3] Group 2 - DREAME MART, a trendy toy brand under DREAME, plans to open its first store in Beijing on May 1, focusing on youth lifestyle and unique IP products [5][8] - The first "Pasture Milk Warehouse" store of Mo Yogurt opened in Shanghai, featuring an open kitchen and a variety of innovative dairy products [10] - The first BegL restaurant in South China opened in Shenzhen, offering a workshop space with various bagel flavors and brunch options [12] Group 3 - The new tea brand "Chuntian Mature Tea House" opened its first store in Shanghai, focusing on high-quality mature teas and catering to health-conscious consumers [14] - The indoor high-altitude amusement brand "Elastic Dream Factory" signed a lease for its first South China store in Haikou, featuring over 30 innovative entertainment projects [17] - HARMAY opened four new stores in three cities, accelerating its expansion [18][19] Group 4 - BY FAR, a Bulgarian niche bag brand, is set to exit the Chinese market as its last store in Beijing will close on May 14 [22] - The brand "橘朵" launched its first sub-brand "橘朵橘标," focusing on high-performance makeup for outdoor and sports scenarios [24][25] - "沪上阿姨" and "绿茶集团" have both passed the listing hearing on the Hong Kong Stock Exchange, with plans for expansion and digital upgrades [27][29] Group 5 - Hema achieved its first annual profit and plans to open nearly 100 new stores by 2025, focusing on lower-tier markets and northern cities [33] - Olé, a high-end retail brand under China Resources Vanguard, is upgrading its product line and opening six new stores, including a food hall in Nanjing [34] - The British frozen food supermarket giant Iceland is set to open its first Asia-Pacific store in Beijing, focusing on interest e-commerce and live streaming [37][38]