Brand Strategic Research Of China Cosmetic Industry

Nowadays in china, the market of cosmetics is growing with over 10% yearly, valued over 100 billion RMB with more than 30% profits, appealing most of the international MNCs to join through it. Entering the 21st century after China joining in WTO, opportunities and challenges here are exciting the investors all over the world.China's domestic industry of cosmetic has grown to be the biggest manufacture in the world, but with almost zero well-known brands. In the past 10 years, a large number of foreign cosmetics enterprises entered this market, brought along a large number of local enterprises, in particular, the emergence of private enterprises. But almost all the local brands just participates competition in mid and low-tear productions, mainly in 2nd and 3rd level domestic market. Currently, there are over 3000 local cosmetics enterprises, 90% of them can only earn below 50 million RMB annual sales, they have about 60% market-share in domestics, but almost 80% of the profits from this market have been obtaining by foreign enterprises. More market-share but less profit, this is the biggest problem troubling local enterprises, they have no brands making them with constant growth. Therefore, it's necessary to appraise current local cosmetics enterprises, then to find out an efficient brand strategy for them.In this article, several classic theories of brand strategy are viewed firstly, as well as the analysis of actual status of domestic cosmetics market and local enterprises. Then the gap between local brands and worldwide brands is explained by the author, using the methodology of contrast and interpretation, thus it's necessary to implement systematic brand strategy in local cosmetics enterprises. Based on the actual status, meanwhile the theories, the author creates the"Five-Steps"to develop the brand strategy for local cosmetics enterprises.