Forecast: China's drug and makeup market capacity reached 48 billion yuan in 2010

With the rapid development of the drug and makeup industry in China, experts predict that by 2010, the drug and makeup market capacity in China will reach 48 billion yuan, accounting for 40% of the cosmetics market, and will still maintain double-digit growth. Facing the temptation of a huge market, many companies are no longer reserved and have fought in the drug and makeup market.

With the rapid development of the drug and makeup industry in China, experts predict that by 2010, the drug and makeup market capacity in China will reach 48 billion yuan, accounting for 40% of the cosmetics market, and will still maintain double-digit growth. Facing the temptation of a huge market, many companies are no longer reserved and have fought in the drug and makeup market. On the other hand, the "drugs and drugs" incidents in recent years have caused many people to pay unprecedented attention to quality and safety. In this context, the 5th Health and Zhongshan Forum held on October 30 (hereinafter referred to as the Zhongshan Forum) focused on the drug and makeup industry and attracted the attention of the industry.

In the process of local companies entering the daily trend of becoming stronger, foreign capital monopolizing the day-to-day layout or being quietly incited, the local drugstore always seems to be so embarrassing.

The name is "rooting"

At the forum in Zhongshan, experts from the cosmetics industry and representatives of companies from all over the country all attributed the "shuffyness" of the drug and makeup industry in China to the question of whether the cosmetics brand name "pharmacy" or the name "makeup" was used to solve the skin care problems with the pharmaceutical industry. on. This imported concept is still vague. “At present, China does not have a real cosmeceutical. At this stage, the use of Wei Zi Zhun Zi or Wei Wei Shi Zi is used,” said Wu Zhigang, a veteran of the Chinese cosmetics industry.

The reporter found that the "Cosmetics Hygiene Supervision Regulations" found that there is indeed no "drug makeup" concept. It is precisely because of the absence of a unified standard that causes the good and the bad of the listed products, and the supervision cannot be followed. What is even more worrying is that with the constant development of the industry, the actual demands of the market and the absence of relevant laws and regulations in China have begun to produce contradictions that are difficult to reconcile. Wu Zhigang believes that at present, China's drug and makeup market needs to be regulated. "If the name is not correct, the brand will not stand. If the Chinese drug and cosmetics market is not yet mature, if it continues to lack an effective regulatory system, it will inevitably hinder the development of the industry."

In response, Maya, chairman of the All-China Federation of Industry and Commerce Cosmetics Industry Chamber of Commerce, believes: "The important thing in China's drug and cosmetics brand is the unclear positioning, resulting in the market still has not formed a primary industry scale and a relatively stable profit model." Ya’s views represent the views of a considerable number of people in the industry.

Abell’s general manager Zhang Zhiwei’s deep feelings. He believes that although cosmeceuticals flourish in the Chinese cosmetics market, the reality is that drugstores such as Neptune Star and Beijing Golden Elephant have not replicated the “cosmetics” model in bulk in the system, and most pharmacies have stopped. At the trial stage of the drug makeup counter, it is difficult to break its own development bottleneck and establish its own brand. Without a stable profit model, the industry chain cannot be effectively replicated. As a result, experts have pointed out that drugstores and cosmetics must be named without delay, so that drugstores and cosmetics can literally take root in China.

The darkening of channels In recent years, the transformation between drug and drug channels is being staged. When the cosmopolitan cousin Vichy quietly moved its energy from the pharmacy gradually, another international brand Shiseido carried its drug and cosmetics brand “DQ” into the domestic pharmacy channel. The local drug and makeup that has not yet formed its own characteristics is also a source of worry and retreat. It is still difficult to find a way to settle down.

There are point of view, L'Oreal has a large number of brands, the original reason why the launch of Vichy, La Roche-Posay and other drug makeup brand is hoping to open up new markets in the new channel. Today, it does not stick to the original channel positioning, but instead approaches the channel of “department store”, mainly to ease the pressure of performance growth.

Wu Zhigang believes that although there are some confusions in the management of drugstores in pharmacies, there are too many cosmetics brands in Shangchao, and channel changes may downplay their own brand characteristics. “The new healthcare reform has turned pharmacies into diversification, and the opportunities for the drug and cosmetic market are also gradually losing. Enterprises should be positioned reasonably, and more research should be conducted on how to sell pharmacies in general pharmacies.”

The reporter also learned that some local companies have begun to take a new route in channel construction. For example, the exploration of Hong Hong Pharmaceutical deserves the attention of the industry. The channel design of Wei Yuna’s drug and makeup product is more three-dimensional, that is, the high-end products take the ** route, and the dermatologists’ clinical promotion is the mainstay, while the society near the ** Pharmacies set up counters; while low-end products take pharmacy channels.

Forum experts believe that the drug brand should be studied as a normal state. At present, the domestic pyramid structure is that foreign capital is at the top of the tower, followed by joint ventures, and national brands are at the lowest level, while channel design of Winona is positive. Trying to break through this market pattern.

Differing from the sales channel of “Wonona” soldiers, the eye cream product promoted by Ma Yinglong Pharmaceuticals is the pharmacy store as the preferred channel. Wu Zhigang believes that whether it is foreign brands Vichy, Quan Quan, La Roche-Posay, Jasmine, etc., or the local Zeping, mining and cosmeceuticals, etc., the key driver of the quiet change of its channel model is still a change in business philosophy and strategy.

In recent years, foreign capital giants have been targeting China, the UK's Simple has entered the Chinese cosmeceutical market with a high profile, and Germany's Delifu products have also come to China to “gold rush” in the name of cosmeceuticals, while local brands are still lackluster and the entire market lacks indigenous Leading brand.

"The core of this status quo is that the upstream and downstream supply chains have not made joint efforts to strengthen pre-consumer education." In Wu Zhigang's view, some local drugstore companies are ambiguous about the channels they seldom have enough resources to carry on. Consumer education.

At present, there are more than 4,000 daily chemical companies in China, and there are more than 20,000 brands. However, there are not many billions of dollars worth of annual sales, and only 5 to 6 billion yuan are worth more than 1 billion yuan. However, it is worth noting that L'Oreal’s Vichy and Laoting Springs have broken through the existing counter models and began to develop offline, continuing to expand their hardcore user base through membership-based clubs. The Lam Tei Spring Institute established in China brought together experts in the field of skin cosmetology in China and further strengthened the image of its “skin care specialist”. For this reason, local drugstores need to calm down to think about the heavy burden of consumers.

In fact, after 2002, Vichy's success not only gave consumers new skin care concepts, but also played the role of visiting professor in the Chinese drug and makeup market. However, many drug and cosmetics manufacturers do not care, and ultimately their market awareness and service concept have not been fundamentally improved and enhanced. When market competition intensifies, they have no other skills, the market continues to overdraft and consume, and the education market and guidance The consumption of members has been decreasing, and then objectively formed the depressed drug and makeup market in China today.

Although in a certain sense, 2002 is a watershed for the development of the Chinese drug and cosmetics market, the “Vichy model” created by Vichy in the process of localization in China has established its absolute leading edge separation advantage, but Wu Zhigang believes that drug protection The essence is to use medical methods to solve the problem of skin care, as long as the drug has the same rigorous attitude, it can bring new skin care products.

"Discussing the future development of the Chinese drug and makeup market, consumers' mental education is a reality that cannot be evaded. How to implement education consumption and market guidance at multiple levels and in multiple ways, and integrate the scientific concept of professional skin care and safety conservation into In the life of the target customer, it becomes the technical problem that will face in the future.” Wu Zhigang said.