The beauty industry is in for another shakeup.

With the beauty industry as a whole entering the life cycle of competing products and technologies, established domestic brands and new consumer brands are rising. In addition, with the rise of emerging e-commerce such as social media platforms, domestic beauty cosmetics have made a new leap forward again. Huaxizi, Perfect Diary makeup and other brands have grown rapidly, and are in direct battle with the established cosmetics brands. Many of these Internet celebrity brands, due to changes in the market environment, lack of brand power and other reasons, eventually become a flash in the pan and become bubbles.

When the flow dividend recede, consumers tend to be rational, the strong domestic beauty makeup how to maintain such momentum? And how should international big brands hold the market? Amid all this anxiety, brands must keep a keen eye on the industry's weather vane and target growth opportunities brought by new channels.

Known as the "Oscars of the beauty industry", the Tmall Golden Beauty Awards was announced on April 26. As a major summit attracting the attention of the industry, the theme of this summit is "Beauty New Era", inviting more than 300 of the world's most influential beauty brands to share the development experience and future direction of the industry. Brand merchants here see the industry vane, find the development of new trends, new growth and new business opportunities.

Efficacy skin care into the trend, domestic products and international brands "competition"

Chinese cosmetics are on the rise. According to the "Chinese Cosmetics Insight Report", from the perspective of market share, Chinese cosmetics brands have accounted for 56% of the market share. In terms of consumers' purchase intention, 42% of consumers prefer to choose domestic cosmetics brands, and 90% of consumers said they would buy domestic cosmetics again in the future.

Judging from the sales volume of beauty makeup on 618 Tmall last year, the transaction volume of the flagship store of Kuadi, a brand of Huaxi Bio-brand, exceeded 1 billion yuan in 2022, with a growth rate of 30%. Kuadi, founded in 2018, sold 510 million yuan on Tmall in the first wave of sales during the Singles' Day holiday last year, a year-on-year increase of 67%.

Bright results behind, benefit from the domestic beauty makeup to research and development technology investment. According to the financial report of 2022, the RD expenditure of Huaxi Biological reached 388 million yuan, with a year-on-year growth of 36.52%; With recombinant collagen as the core technology, Juzbio has established a synthetic biology platform, focusing on the production of recombinant collagen + ginsenoside and other bioactive ingredients, with a purity of 99.9%; Bethany, on the other hand, invested 278 million yuan in RD in 2022, accounting for 5.55% of its total revenue, up from 2.99% in 2021.

"Continuous investment in basic research and applied basic research, and product differentiation through core technologies, is the real way out for domestic products." Huaxi biological chairman Zhao Yan stressed at the meeting.

According to the report of iResearch Consulting, the scale of China's efficacy skin care industry has reached 26.01 billion yuan in 2020. In the next three years, the scale of efficacy skin care industry will continue to increase with an annual compound growth rate of 29.4%, and reach 58.97 billion yuan in 2023.

The rapid growth of the efficacy market gives the domestic beauty makeup a chance to compete with the top brands. In the Tmall Golden Makeup Award, the annual Super single Award, Kuadi Revitalizing essence and secondary essence took a place. Huexizi Jade Nourishing Air Honey Powder and Nature Tang Xiaozi Bottle won the Super New Product of the Year award together with L 'Oreal 20 Cream, Estee Lauder Black Truffle Essence and NARS Super Square Bottle.

At the same time, domestic cosmetics also need to realize their shortcomings and shortcomings. On the Tmall Golden Cosmetics Award Summit, almost all the awards in the cosmetics field were won by first-line brands. The brands that won the annual liquid foundation were respectively from Mac, Estee Lauder, Lancome, and the three annual lip makeup awards were also from international brands such as YSL, Armani, Dior and so on.

In order to make up such a gap, domestic makeup still needs to make more efforts on the technical formula, and constantly build the influence of the product, precipitation brand culture, in order to win the favor of consumers in the middle and high-end makeup market.

According to the statistics of Euromonitor, the market scale of cosmetics in China from 2011 to 2022 shows an increasing trend year by year, from 23,944 billion yuan in 2011 to 616,433 billion yuan in 2022, with a compound growth rate of about 9.3%.

How to get a share of the huge market share of international brands and domestic cosmetics, in addition to increasing their strength in products and technology, but also with the ecological support of the platform, to achieve business growth.