To accelerate China’s cosmetic industry to the world, the 2022 Oriental Beauty Valley International Cosmetic Conference(OBVIC) kicked off on November 9, 2022 in Fengxian, Shanghai.
Oriental Beauty Valley International Cosmetic Conference has been successfully held four times. At present, Oriental Beauty Valley has gathered more than 1/3 of the cosmetic enterprises in Shanghai with an industry scale of nearly 70 billion yuan (about $9.7 billion). The total brand value of “Oriental Beauty Valley” has exceeded 28 billion yuan(about $3.9 billion), making it one of the largest and most well-known cosmetic clusters in Shanghai. Oriental Beauty Valley International Cosmetic Conference has also become one of the highest profile and strongest international events in the cosmetic industry.
This year’s conference closely caught the uncertain era beauty industry hotspots. International and Chinese domestic well-known entrepreneurs, industry experts, industry newcomers from L’Oreal, Shiseido, Amore Pacific, JALA, Mageline, Forest Cabin gathered in Shanghai to discuss the new technologies, new trends, new developments in global cosmetics industry. CHAILEEDO reported on the scene.
L’Oréal: Under the uncertain times, high-end development is needed
Mr. Fabrice, President of L’Oréal North Asia & CEO of L’Oréal China
1. In the uncertain era with uncertainty, the cosmetic industry continues to develop. We will continue to innovate, achieve breakthroughs, target higher-end consumers and talent development, and promote the industry.
2. This year is the 25th anniversary of L’Oreal’s entry into China. L’Oreal will continue to strengthen the cooperation between cosmetics among international and China.
Shiseido: Shisedo China sales will soon surpass Shiseido Japan
Hidefumi Araki, Shiseido Chief Innovation Officer
1. China market is very important, I believe Shiseido in China market sales soon exceeded the Japanese market.
2. Shiseido’s vision for 2030, which is to contribute to the well-being of 200 million people worldwide through beauty and health.
3. Shiseido’s strengths are skincare products and expanding to beauty devices, personalized services leading brand development and strengthening high-end beauty.
4.Shiseido China has become the second headquarters in the world, with three pillars in the Chinese market: 1.Powered in skincare. Shiseido made detailed research on Asian skin, development of original technology “digital skin” to reveal the causes of aging. 2. Leading the trend of sustainability. Shiseido offers approximately 800 SKU’s of “replacement” products across 33 brands worldwide. 3. Accelerate innovation. The establishment of a new innovation center in China to expand new business areas. The establishment of investment funds leads investment in recombinant collagen material companies.
Amore Pacific: Sustainable beauty market size may reach $40 billion
Yu Jian, General Manager, China Amore
1、Sustainable development is an important responsibility of the beauty industry.
2. 64% of Chinese consumers are willing to pay 25% more for sustainable products.
3、Generation Z and Millennials are more willing to embrace the idea of sustainability. Brands are key to driving sustainability awareness, and consumers expect brands to take more responsibility for sustainability.
4. The market size of the sustainable beauty industry is likely to reach $40 billion.
JALA: the cost of self-research ingredients saved 90% of imported ingredients
Zheng Chunying, Chairman and President, JALA Group
1. Jala adheres multi-brand development. Jala established more than 42,000 offline retail stores across China and entered all e-commerce platform. JALA enjoys more than 67 million member.
2. Chinese enterprises should build their own industrial core, so that we can do better and better, not only bigger and faster.
3. Microbial fermentation development platform is currently completing the commercialization of 2 independent ingredients, one of which is HiMurchaSin. Compared with the imported ingredients from Europe, the cost saving is 90%, and yeast is no longer synonymous with expensive. The plant cell development platform has completed the commercialization of 1 independent ingredients and listed 5 products, and CHANDO Pink Diamond Firming Delicate Rose series co-created with Li Jiaqi has applied this ingredients. The sales exceeded 50 million yuan(about $6.9 million) on the first day of launch.
4. JALA believes that enterprise development should promote the harmonious coexistence of people, society and the environment in a beautiful world, which is the meaning of corporate.
Mageline: the success of brands depends on the product efficacy
Guo Miao, founder and chairman of Mageline.
1. China’s cosmetic industry high boom development and the rise of Chinese domestic beauty brands maintained strong momentum. Chinese young consumers have given more trust and choice of Chinese domestic products.
2. Consumers are more and more professional. Their needs of skincare also upgraded to higher level of efficacy needs such as anti-aging and repairing skin and others. The trend of sensible consumption is more prevalent. On the other hand, with the development of the cosmetic industry, regulatory regulations continue to improve and the industry gradually tends to standardize, high-quality development, longer product development cycles. More corporate will invest in research and development. The Chinese cosmetics industry has entered the era of strong efficacy.
3. Unique ingredients are the core competitiveness and moat of beauty brands and the brand concept can help differentiate the brand development.
Forest cabin: Investing 300 million yuan in a carbon-neutral plant, investing our future
Sun Laichun, founder of Forest cabin
1.Environmental protection is being done as the underlying logic of the business to make the skin of mankind and the earth more beautiful.
2.Keep optimistic. In April June 2022, the sanitary control in Shanghai, Forest cabin’s industry performance counterattacked, and the omni channel performance increased by 12% year-on-year in April. In May, the omni channel performance increased by 15.9% year on year. 618 omni channel performance increased by nearly 30% year on year.
3.The way to counter the trend of growth is to keep a good attitude, keep looking for ways and strengthen organizational confidence. Enterprises should do a good job of customer communication during the uncertain period, and look for opportunities in the crisis.
4.Investing 300 million yuan in a carbon-neutral plant, investing our future.