In the fast-paced world of China’s beauty industry, staying ahead of trends is crucial for every player across the supply chain.
However, the rise of social media and e-commerce as a major influence has introduced a new level of unpredictability.
What goes viral online can skyrocket demand overnight, which puts pressure on manufacturers, distributors, and retailers to keep up with consumer demand driven by viral content.
On the flip side, trends can also fade just as quickly, leaving suppliers with excess inventory and potential losses.
“It’s a bit like gambling,” said Christoph Yu, regional marketing manager, Clariant.
“Sometimes there are two products, and one doesn’t do very well. The other one is in demand and our customer says they need 10 times more of it. It’s a challenge for suppliers to have the materials available in time,” Yu told CosmeticsDesign-Asia.
This is in addition to continued disruption in the global supply chain caused by the lingering effects of the COVID-19 pandemic, as well as geopolitical tensions.
These scenarios are amplified in China home to demanding and impatient consumers who consider a week too long to wait for a package to arrive, said Yu.
Furthermore, a trend that catches on in a niche market can mean major volume given the sheer size of the population and market in China.
Yu emphasised the importance of localisation in a market as unpredictable and volatile as China’s beauty market.
“It’s a challenge and that’s why at Clariant we do more localisation and put in local investments. We want to be more local – in China for China. This is a countermeasure to mitigate the challenges.”
The Swiss specialty chemical company has invested in its local production in Daya Bay, Huizhou to expand its existing production capacity for personal care as well as home care and industrial applications.
According to the firm, the CHF80m investment will see capacity increases for existing products, as well as the introduction of new products by the end of 2024.
Emerging emo-beauty trend
The firm was at Personal Care and Homecare Ingredients (PCHi) trade show in Shanghai in March to showcase solutions to the trend of emotional beauty.
Yu noted that fulfilling basic physiological requirements of the skin is no longer enough to meet the demands of Chinese beauty consumers.
“Emotional beauty is an emerging segment or niche market. Consumers now request for skin care that goes beyond whitening, moisturising, or anti-ageing. They need different experiences."
For instance, the company’s Rootness Mood+, which was showcased at PCHi replicates the feeling of “sunshine on the skin”, Yu said.
According to the firm, Rootness Mood+ revives dull skin by kickstarting vitamin D pathways and photoreceptors. This is said to “reproduce the benefits of light exposure” which boosts feel-good hormones serotonin and melatonin for a more positive mood.
The firm also featured Beraca CBA which touts to activate the skin’s endocannabinoid system, stimulating CB2 receptors for a calming effect.
By modulating irritation mediators and rebalancing microbiota, redness and sensitivity are reduced.