According to Euromonitor, the overall upbeat economic outlook in China is expected to underpin the dynamic constant value CAGR of 9.3% predicted in retailing from 2011 to 2016. Primarily due to supporting policy from the central government to further improve the internet infrastructure, average Chinese households are more likely to have access to faster and less expensive internet services. As such, Euromonitor expects internet retailing in China to record 29% constant value CAGR during the forecast period. For online cosmetics consuming, iResearch expects it will soon account for 10% of total amount spent on cosmetic products by Chinese consumers, and online cosmetics sales will exceed 120 billion RMB by 2015.
As the competition mounts, China online cosmetics retailing market will enter a period of consolidation. With 25% of China’s population becoming online mobile phone users in 2011, e-commerce can be explored in many ways such as M-commerce, SNS, Weibo, and group buying, all of which are expected to reshape online retailing in the future. However, both brand owners and retailers must be aware of the key factors changing consumer behavior such as inflation worries, an aging population, social strains and economic changes.
Ally Dai is Deputy Editor-in-Chief of Ringier Trade Media Ltd, responsible for trade publications including Happi China. She has more than 10 years of experience in the cosmetic and food industries. Happi China is a leading media for the China household & personal care industry. Published by Ringier Trade Media in strategic editorial partnership with Happi, it helps local manufacturers update their knowledge on formulating, testing and packaging, as well as providing market insight.