Cosmetic Industry background Analysis in China Marcket Assignment

Cosmetic Industry background Analysis in China Marcket - Assignment Example Due to this, many cosmetics manufacturers have introduced more products in the expanding cosmetic market such as flavored glosses and lipstick, cosmetic packaged in sparkly and glittery packaging, and advertising and marketing using young beautiful models. However, cosmetics market in China is doing well in the manufacturing and packaging of beauty products. For instance, the raw materials of making shampoos are best provided in China by various manufacturers such as: Wuxi Nuoya Machinery Co., Ltd., Yangzhou Chenhua Science &Technology Group Co., Ltd., Shanghai Xiaoxiang Chemical Co., Ltd., and Shandong Freda Biotechnology Co., Ltd., among others (Yang, 2004, p. 123). Cosmetic industry is dominated by a number of multinational corporations. However, sale and distribution is spread over a wide range of businesses in China. Historically, the people of China initially stained their fingernails using gelatin, gum Arabic, egg, and beeswax. The used color represented a particular social cl ass (Tao, 2005, p. 231). For instance, the royals wore silver and gold, and red or black. The lower social classes were forbidden from wearing bright colors. Cosmetics market in China and the world today make a lot of money due to the furious rate of growth of the anti aging industry and the factor of celebrity in marketing and advertising (Tang, 2008). Today in the whole world, beauty is characterized with the youths and many are obsessed with their falling jowls and wrinkles and lines appearing. This is even turning people to undertake cosmetic surgery. This is what has taken my interest in writing this research paper, which will focus on the cosmetic market in China including: wholesalers, manufacturers and retailers; Chinese cosmetic suppliers including raw materials and packaging suppliers (Sunfaith China Ltd., 2005, p. 200). Cosmetic market in China Cosmetic market and industry in China has evolved to a fully fledged market with the emergence of flouring brands (Tang, 2000, p. 311). Within the cosmetic market in China, among the 300 brands, 20 of the brands have a joint venture and leading position of 80% of the share of the market. The cosmetic manufacturers in China are generally located in the inland cities and the Eastern Coastal line (Shen, Liu & Huang, 2005, p. 19). The market produces 90% with sales rated above 60% within the country. With respect to the types of cosmetics in Chinese markets, products of skin care is first in the list with 35% share, products of hair care sharing 28%, and products of make up taking up 29% share, and others are perfumes. According to the cosmetic insiders, the total sales of the cosmetics will probably reach to RMB 80 billion and amount to 12.9% per annum. The wholesalers, manufacturers and retailers are making huge profits in the cosmetic market in China due to the mentioned estimates of sales (Schutte & Ciarlante, 1998, p. 78). China has also emerged the eighth best cosmetic market in the world and second best in Asia. The stiff competition in the cosmetic sector has pushed the industry of cosmetics to combine the cosmetic market, industrialization and internationalization (Pitman, 2005, p. 12). Back in 2005, the scale of market even reached RMB 46 billion, with the cosmetic retail sector reaching RMB 33.05 billion which was much above the expected limit of growth 19.1% (Li, 2005, p. 32). the cosmetic market in China is currently exhibiting the following characters: the cosmetic mark