Regulatory approaches in China reviewed

in February, and, in order to provide updated information on regulatory affairs, the event arranged a special conference to which were invited representatives and speakers from various governing bodies including China’s Ministry of Health, the Guangdong Food and Drug Administration, the China Cosmetics Quality Assurance Committee, the International Cosmetics (Asia Pacific) Joint Development Centre, and the Guangdong Cosmetics Standards & Testing Center. I appreciated being invited to be master of ceremonies of the conference. I attended the seminars officially, and had useful discussions regarding the updated status of China’s cosmetic market and industry.

Status of cosmetic endproduct market in China

According to Chan Chong-Kong, the executive director of International Cosmetics (Asia Pacific) Joint Development Centre (ICJDC), the position of the cosmetic industry in China has shifted from luxury products to necessities for daily lives in the past 20 years. Before, there were only simple cosmetic products, such as basic cream or vanishing cream. Nowadays, there are different segments of cosmetic products such as those for foundation, mascara, shampoo, conditioner, shower gel, facial cream, eye cream and hand cream. Chan Chong-Kong mentioned that China should be the main focus of the global cosmetics market because the country is:
•  The world’s most populous nation.
•  Currently the world’s third largest economic power.
•  Experiencing rapid growth of urban populations.
•  Noticing a rise of disposable income in the middle class.
•  Undergoing a sharp drop in tariff policy after accession to the WTO.
•  Moving ahead with national policies that encourage consumption and expand domestic demand.
Hit hard by financial turmoil, cosmetics sales in many developed economies are expected to show flat or even negative growth in 2009, but Zheng Yan Yun, principal of Guangdong Food and Drug Administration (GDFDA), was still confident that China’s cosmetics market would maintain double digit growth in coming years with the government’s continuous efforts to boost domestic consumption. In fact, the sales volume of China’s cosmetic market was over US$ 12 billion in 2007, the second in Asia. Foreign players have gained a firm foothold in the high-end and luxury segments. The low-end segment is occupied by a large number of local brands.