All conclusions are drawn after investigation and research; during investigation and research, if the cause and solution cannot be found, you cannot let it go. The following is the SWOT analysis related content of the cosmetics market that I have compiled for you. I hope it will be helpful to readers.

SWOT analysis of China’s cosmetics industry

1. Advantages

Entry into the cosmetics industry is not very simple. "Trademark loyalty" is one of the important characteristics of consumer behavior, and product differences are the basis of this trademark loyalty. After many years of operation, companies in the industry have formed an absolutely fixed group of customers. These consumers may like the functions and quality of their products, or appreciate the design, after-sales service, etc. of their products. When consumers are accustomed to using a certain product, a lot of financial and material resources must be spent to eliminate this loyalty. Product differentiation is one of the main barriers to entry for cosmetics.

1) Silky hair also resists aging

According to a survey by the European Union’s Ministry of Commerce, the sales of hair products in 2005 increased by 16% compared with 2004. For this market that is not prone to new ideas, 16 already means huge market demand. Therefore, in addition to appealing to the concept of Home Spa and sunscreen ingredients, anti-aging products for hair have become an upstart in 2006 and will continue to grow. Popular trend.

2) You can also enjoy the care of a beauty salon at home

SPA refers to a new leisure beauty method, that is, in a beautiful place to relax, rest and enjoy, professional beauty therapists Beauty therapy services provided. SPA is not an ordinary weight loss or skin care, but a way for women to treat themselves well, take care of their body and mind, and enjoy and relax their body and mind. It is an effective way for modern women to eliminate fatigue and decompress their body and mind. In the past, household bath products, which only accounted for a very small share of the cosmetics industry and played an insignificant supporting role, will be impressive in 2006. Shower gels, bubble baths, and various hair care products will all appear in a bright and beautiful way. All skin care products compete with each other. In addition, these products no longer just play the role of cleaning supplies, but have risen to the level of "psychological treatment". The ingredients contain soothing, stress-reducing, spiritual massage, detoxification functions, etc. to attract consumers who yearn for family life. who.

3)? Green? Organic? Sustained fever

The value of life that consumers value will naturally become an important consideration for cosmetics companies when designing products. The demand for natural, pure, safe and harmless cosmetics is the common wish of all women who love beauty. Therefore, the words environmental protection, regeneration, green and organic will become important expressions in the cosmetics industry in 2006.

4) Easily click and deliver beautifully

Giorgio Armani, who has always served customers at the top of the pyramid, just announced the opening of two portals directly affiliated to the company at the end of 2005, one for sales Perfume; one sells cosmetics and skin care products. The Body Shop, which has stores all over the world, has also joined the ranks of online shopping. Its performance in 2005 increased significantly by 57% compared with the previous year. In 2006, many major cosmetics brands will open direct sales websites online to sell products. These are not old products, but new products that have just been launched.

In fact, many women who love beauty have begun to purchase cosmetics through the Internet channel, and the NPD Group, a U.S. statistical agency for BB cream, unanimously believes that online shopping performance will grow exponentially in the next few years. The average annual amount of cosmetics purchased online by American women is US$87. In 2006, this amount is predicted to rise by 38% to US$120. Dear cosmetics geeks, in the new year, use the Internet to complete your beauty plans.

5) Cosmetics no longer favor women over men?

In recent years, many men in modern society have begun to pay attention to their own face issues. More and more men, Pay a lot of attention and investment to your skin, body shape, and body odor. The era of why a man needs to be in the mirror has long passed. Even if he doesn't, the women around him will urge him.

Therefore, sets of skin care products for men’s skin conditions have been developed. Merchants no longer favor women over men, and have designed simple, practical and modern skin care products for men.

2. Disadvantages

Our domestic enterprises are small in scale and find it difficult to compete with foreign enterprises.

BB Cream Ranking At present, my country’s domestic cosmetics companies are still dominated by small and medium-sized enterprises. There are only a few national brands with a scale of more than 500 million yuan, such as Beijing Dabao, Chongqing Aoni, and Shanghai Jahwa, which are difficult to form. Strong group competitiveness. Low-level duplication of construction and low-price vicious competition have reduced the average output value of enterprises to less than 10 million yuan. With the accession to the WTO, the continuous influx of multinational companies has made competition in the cosmetics market more intense. They not only have an advantage in high-end products, but also set their sights on the mid-to-low-end market. Relying on their capital and brand advantages, they continue to penetrate into the domestic mid-to-low-end market through mergers and acquisitions of domestic brands. Local cosmetics companies are proud of this. The channel advantages in the mid- to low-end markets that China relies on for survival are disappearing at an accelerating rate.

3. Opportunities

my country’s cosmetics market sales have grown at an average annual rate of 23.8%, with the highest year reaching 41%. The growth rate is much higher than the average growth rate of the national economy. my country's cosmetics market sales ranks second in Asia and eighth in the world. There are 4,000 cosmetics manufacturers nationwide. Up to now, there are more than 50 cosmetics industries with annual sales of more than 100 million yuan, of which more than 10 have annual sales of more than 500 million yuan. It is estimated that by 2010, the annual sales of the cosmetics market will reach 80 billion yuan, with an annual increase of about 12.9%.

1) Skin care products that ignite passion are about to appear

Tired, nervous, frustrated, depressed? You will definitely be familiar with these adjectives. Yes, they occupy our lives and affect our bodies, minds and souls, making us numb, listless and uninterested in everything. Of course, they also indirectly affect the quality of our married life.

In order to regain enthusiasm, the oral health care products that have come out frequently have been popular for several years, and they are getting hotter and hotter. In order to prevent health care products from becoming more and more popular, skin care products have begun to add some ingredients. The active ingredients with aphrodisiac properties, including natural pure essential oils extracted from plants, are currently the hottest star ingredients.

In the past, skin care products containing aphrodisiac essential oils were limited to product lines such as body massage oils and balms. According to a report from cosmetic trends, a commodity intelligence agency, many classic brands have already invested manpower and material resources to quietly With the research and development of such skin care products, the full launch time is just around the corner.

2) Improving the IQ of anti-graft products

The most eye-catching cooperation case in 2005 that has the value of predicting market trends is Croda and Oxonica’s anti-graft products. cooperation. Croda licenses the sunscreen factors developed with nanotechnology to Oxonica at a very astonishing price, which means that not only the sunscreen index is rising steadily, but "smart and smart" sunscreen products are the main line of competition in the 2006 summer market.

4. Threats

Cosmetic companies have substitution threats. Substitutes are products that have the same or similar functions as the customer's product. Then companies that produce substitutes themselves pose threats to customers and even the industry. The greater the pressure of substitute competition, the greater the threat to customers. Products with low switching costs and low consumer loyalty have an absolutely high threat of substitution. For the cosmetics industry, consumer loyalty is high and the industry has a low threat of substitution.

Consumers use cosmetics mainly for the main reasons of beauty, health and improving skin quality. Although consumers can seek appeal through SPA in some beauty and skin care shops or directly to plastic surgeons, these alternatives have disadvantages such as being more expensive, higher risk, and less convenient to use than cosmetics, so they are generally The public will still prioritize cosmetics.

Like suppliers, buyers can also pose a threat to industry profitability. Buyers can force prices down or demand higher quality or more services. To achieve this, they may pit producers against each other or not purchase goods from any single producer. Buyers can generally be classified as industrial customers or individual customers, and the buyer's purchasing behavior is generally irrelevant to this classification method. One exception is that industrial customers are retailers, who can influence consumers' purchasing decisions. In this way, the retailer's ability to calculate is significantly enhanced. In the cosmetics industry, due to its current low threshold, low costs and high profits, coupled with some specific factors such as the OEM model, there is a phenomenon of dealers "rebellion", which increases competition in the industry. Moreover, there are many sales channels in the cosmetics industry. Some directly face intermediaries, while others directly face consumers. When dealing with intermediaries, the bargaining power must consider the market strength of both parties and the needs of the final consumers. Therefore, the bargaining power does not appear to be unique in any aspect; but when faced with ordinary consumers, the bargaining power of consumers is low. The current rebellion of cosmetics dealers refers to the strong strength of the middlemen faced by cosmetics companies.

Cosmetics market SWOT analysis: How should local cosmetics go?

When going to Japan on a business trip, Xie Wenjian, chairman and general manager of Shanghai Jahwa, discovered that the beauty stores there were crowded. Why do Chinese people like foreign cosmetics so much? People who shop overseas believe that cosmetics from Europe, America, Japan and South Korea are of good quality, and the Chinese middle class and above are also willing to pay higher prices to buy better quality products. ?Xie Wenjian believes that from the perspective of meeting consumer needs, local Chinese cosmetics brands with their own comparative advantages should produce products and experiences that exceed consumer expectations in areas such as quality and service.

He noticed the changes and transitions in China’s daily chemical market in recent years. Relevant statistics show that this year, the overall market share of local daily chemical brands exceeded foreign brands for the first time. This is also the path that Japanese and Korean daily chemical brands have taken. Foreign brands such as Europe and the United States also dominated the local market, but local local brands now dominate. Although the development time of China's local cosmetics brands is short, this trend has already begun.

? Local enterprises are gradually growing and rising rapidly, which may benefit from their own comparative advantages. ?Xie Wenjian said,? In terms of channels, many local companies are deeply involved in channels in second- and third-tier cities, making product channels continue to sink. At the same time, they are developing e-commerce channels to adapt to the consumption patterns of domestic consumers. In terms of institutions, local companies often make decisions in the domestic market. Can respond more quickly; finally, culturally, the natural power of the East is rising. Chinese people’s preference for concepts such as herbal medicine and traditional Chinese medicine has promoted the growth of related local brands. ?

Facing the wave of the Internet era, Xie Wenjian said in an exclusive interview with the media that although e-commerce is one of the fastest-growing sales channels in recent years, companies do not need to blindly worship e-commerce. Instead, channels should maintain a keen sense of market changes, establish a rapid response mechanism, and find ways to combine their own comparative advantages, so that they can respond to changes in the competition by remaining unchanged.

Under the "new normal", the noteworthy phenomena in the daily chemical market in 2015 are: local brands have emerged in market segments with the help of two emerging channels, e-commerce and offline specialty stores; many local daily chemical companies Obtaining venture capital will play an increasingly important role in the development of the daily chemical industry; cosmetics e-commerce business is growing rapidly, and it will be a general trend for consumers to pursue better brands, products and services, which requires companies to not only use e-commerce The merchant channel is regarded as a single distribution channel, but a platform for direct communication and interaction with consumers.

Xie Wenjian believes that traditional enterprises also have advantages in transforming into e-commerce. If they can combine online and offline well, there will be huge room for future development.

On the one hand, it is a general trend for traditional enterprises to transform towards the Internet. This is mainly caused by the transformation of consumer habits and production, logistics, marketing and many other aspects brought about by Internet technology. Only by following this trend can we grasp the capital to compete in the ever-advancing era.

On the other hand, compared with emerging Internet companies, traditional companies also have many opportunities for further growth and transformation. First of all, traditional enterprises have a good manufacturing foundation. If they can make good use of their own manufacturing advantages and carry out flexible and personalized customization, they will well promote the enterprise's own development strategy and save production costs. Secondly, traditional enterprises have a very complete offline channel layout. Today, the concept of "Internetization" is no longer limited to the Internet. Every aspect of life is a part of the "Internet". Only interconnection is the "Internet". The truth.

Consumers’ needs are no longer just satisfied with the convenience of online shopping. In the past, the so-called Internet broke information asymmetry more on the objective material level such as price and ingredients, and on the spiritual aspects of people’s feelings and experiences. Things at this level cannot be covered, so O2O will be a more important development direction in the future. Therefore, the opportunity for today's Internet marketing lies in how to allow consumers to improve their own experience and value perception. This requires the participation of offline channels so that consumers can truly touch the product.

In the long run, the logic of the emergence of e-commerce, O2O, and former department stores and shopping malls is consistent. They are all innovations and changes in consumption patterns due to economic growth and technological progress. Marketing methods and approaches are therefore constantly changing.