China Beauty Industry Investment Report, 2007
As people's living standard improves, people pay much more attention to appearance and figure except for health. After 20 years of development since 1980s until now, China beauty industry's total output value has rose from RMB 2 billion to current RMB 200 billion, increasing by 100 times. During the evolvement, beauty industry experienced two ages: the first was from mid-1980s to later 1990s (the age of industrialized product economy) and the second was from later 1990s to 2004 (the age of sci-tech economy). The third age from 2005 until now (the age of operation-oriented knowledge-capital economy) is under the way.
In recent years, China beauty industry has been keeping a rapid growth at more than 15%. For China beauty industry in 2006, output value reached RMB 240 billion, population joining in this area exceeded 16 million and beauty institution amount approached 1.8 million which rose 20% from 2005 and 93% are private-operated. However, per capita spending on beauty stays at a lower level compared to the developed countries; China beauty industry still sees huge potentials. An estimate shows total output value of China beauty industry will exceed RMB 300 billion by 2010.
Market competition is mainly focused on traditional beauty & hairdressing services such as whitening, macula removing, and breast enlargement, weight loss, hair dyeing, hair dressing and SPA. These services are closely related to people's life, so they are in enormous potentials. Investors can capture market shares as long as they constantly seek innovation based on strength and actuality.
As woman beauty market sees an increasingly fierce competition, man beauty has become one of the popular trends internationally. At present, male cosmetics include perfume, after shave lotion, shaving cream, and hair-care & skincare products, etc. Men's product has a foothold in cosmetic markets in recent 2-3 years but brands are mainly from Europe and U.S. As men get to love beauty, their demands will continuously grow towards beauty, nutrition, physical therapy, multi-purpose services and raw material naturalized instead of single products.
As beauty education gets orderly and developed, the demands for beauty education professionals further grow. Either education on life beauty skills or training on medical beauty talents needs to cultivate professional high-qualification teachers, which is also the only way for beauty education organizations to get upgraded and developed. Beauty professionals are supposed to master modern knowledge & skills on beauty, to understand beauty industry's development orientation and to turn experienced in operation and management.
Similar with catering industry, beauty & hairdressing industry has an extremely high elimination rate. Among some 1.8 million professional beauty institutions, over 1/3 was forced to be closed down each year; but even though, there are still a large number of new ones opened annually.
Beauty salon will carry out ``star-level`` management in the future, just like what the hotels are doing, and such policy is expected to be implemented from 2007. This system aims to regulate current beauty market by assessing whether or not beauty & hairdressing salon can reach standard or certain star level based on beauty & hairdressing salon's skills, services, health conditions and facilities.
Since 2005, the edge industries of drug & healthcare, fast consumer goods, medical devices and automobile, etc are developing to be scale-oriented, diversified and segmented, which awakes beauty industry. Beauty industry has formed an integrated industrial chain that stays with beauty services as major, production of materials, professional instrument and cosmetics as support; ornament, color service and image design as matched industry; exhibition, beauty newspapers & news communication, information consulting as media; and beauty education as base of talent resources. The training, service, culture and conference industries derived from beauty & hairdressing industry start enjoying a boom and they will witness greater potentials in economic benefits generating in 2007.
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