Development Planning of China Cosmetic Industry during the “14th Five-Year Plan”

China Association of Fragrance Flavour and Cosmetic Industries

The “14th Five-Year Plan” period is the first five years of the new journey of building a socialist modern country in an all-round way,and also the first five years of the formal implementation of the Regulations on Supervision and Administration of Cosmetics,the high-level law of the cosmetic industry in China.The superposition of the two historical turning points further highlights the important significance of the past five year in promoting the high-quality development of the cosmetics industry in China.Looking back to the development process of our cosmetic industry,the sharp increase in the number of manufacturing enterprises,the further expansion of market scale,the full development and application of new products and new technologies,and the continuous enhancement of selfowned brand awareness,all demonstrate the great vitality of our cosmetic industry.In the meanwhile,the challenges on the road of industry development should also be paid attention to.Therefore,in order to implement the Recommendations of the Central Committee of the Communist Party of China on Formulating the 14th Five-Year Plan for National Economic and Social Development and the Long-Term Goals for 2035 and the 14th Five-Year Plan for National Economic and Social Development and the Long-Term Goals Outline for 2035 of the People’s Republic of China,summarize the development achievements of our cosmetic industry and find out the existing problems,clarity the guiding ideology,the main objectives and the work focus of development,lead the behaviors of the relevant market subjects,stand at the higher starting point of the “14th Five-Year Plan” and take use of system guarantee provided by the Regulations on Supervision and Administration of Cosmetics to meet the challenges,China Association of Fragrance Flavour and Cosmetic Industries specially prepared the plan.

1 The overall situation of our cosmetic industry during the “13th Five-Year Plan”

1.1 Overview

Since the reform and opening up,with the sustained and rapid development of our economy and the great changes in comprehensive national strength and people’s living standards,the pursuit of consumers for “beauty” has become increasingly strong which has promoted the rapid development of the cosmetic industry.Currently,China has become the second largest nation-based cosmetic consumer market in the world.However,because the start of our cosmetic industry development is relatively late and there is still a certain adaptation gap between current enterprise situation,industry development needs and regulatory requirements,it will be a major topic for discussion during the “14th Five-Year Plan” to adapt to regulatory requirements and promote the development of industries and enterprises.

According to incomplete statistics of China Association of Fragrance Flavor and Cosmetic Industries(excluding the output value of upstream and downstream chains,such as beauty salon products,raw materials,packaging materials,etc.),the main business income of our cosmetics manufacturers in 2020 amounted to RMB 395 billion yuan,an increase of 5.3% on year-on-year basis.The average annual growth rate has reached 7.3% in the past five years,exceeding the average growth rate of the national economy over the same period.

In addition,according to the data released by the National Bureau of Statistics,there were 652 cosmetic industrial enterprises above designated size(Industrial Enterprises above Designated Size:industrial legal entities with an annual main business income of RMB 20 million yuan or above),with a main business income of RMB 126.090 billion yuan.In the past five years,the number of cosmetic industrial enterprises above designated size has been growing,with an average annual increase rate of 12.2%,while the scale and increase rate of main business income have increased or decreased,with an average annual increase rate of -0.8%.

In 2020,the retail sales of cosmetic units above the quota(Units above the Quota:wholesale enterprises(units)with an annual main business income of RMB 20 million yuan or above,retail enterprises(units)with an annual main business income of RMB 5 million yuan or above and accommodation and catering enterprises(units)with an annual main business income of RMB 2 million yuan or above)was RMB 340 billion yuan,an increase of 9.5% on yearon-year basis,(the increase)ranking behind beverage(14%),communication equipment(12.9%)and grain,oil and food(9.9%)among 15 categories of commodities.In the past five years,the average growth rate has reached 10.8%,higher than the increase rate of total retail sales of enterprises above the quota,showing an expanding trend.

According to the statistical data of customs,in 2020,China cosmetic industry imported 396,000 tons,with an import value of USD 19.89 billion dollars,an increase of 8% and 33% respectively on year-on-year basis,and exported 749,000 tons,with an export value of USD 3.64 billion dollars,an increase of 12% and-11% respectively on year-on-year basis.At the same time,the import and export data show that the growth rate of our cosmetics import in the past five years is significantly higher than that of cosmetics export,and the trade deficit is widening year by year.

China has been a large country in cosmetics production.As of August 2021,the number of domestic cosmetic manufacturing enterprises has exceeded 5,600,mainly in Guangdong(3,128),Zhejiang(571),Jiangsu(327),Shanghai(236),Shandong(191),Fujian(114)and other provinces and cities,among which Shanghai has most large-scale enterprises and Guangdong has largest number of enterprises,but most of them are small and medium-sized enterprises.After nearly five years of development,our cosmetics have formed advantageous clusters in Guangdong,Shanghai,Zhejiang,Jiangsu and Fujian.For example,since the birth of the “Oriental Beauty Valley” over the past five years,it has “grown from nothing to existence and from existence to excellence” and has formed a beautiful and healthy industrial cluster with leading scale in China,which is striving to move forward from “the capital of cosmetic industry in China” to “the capital of cosmetics in the world”;“Beauty Makeup Town” keeps a foothold in Zhejiang,links with the Yangtze River Delta and integrates into the “One Belt and One Road” to create a domestic leading cosmetic industry cluster with international influence;in Baiyun District of Guangzhou,cosmetics have become an indispensable part of local economic system and have always attracted the attention of society and market,and according to the deployment of the Three-Year Action Plan for Quality and Efficiency Improvement of the Cosmetic Industry in Baiyun District(2018-2020),Baiyuan District,through continuous efforts,has promoted the cosmetic industry to build Baiyun brand in quality and efficiency improvement,and has gradually formed an industrial cluster of tens of billions and hundreds of billions.Jiangsu enterprises are also preparing to establish a Chinese cosmetics(makeup)center in Suzhou High-Tech Zone,which will set up headquarter base,R&D center and smart manufacturing factory,focus on makeup,build smart exhibition hall and live broadcast base of fashionable makeup,and make full use of the Internet,Internet of Things,digital platform and other emerging technological forces to form a unique scale advantage,industrial advantage,brand advantage and cultural advantage in Suzhou and create a characteristic economy with economic and cultural interoperability and integration in Suzhou.

Cosmetics have the characteristics of fast renewal,short marketing cycle and strong seasonality,so enterprises need to put forth new products constantly based on the market demand,resulting in a large number of products registered or filed before launching on the market.

1.2 Main existing problems

The above data reflects the rapid development of cosmetic market and industry in China,but some problems and shortages in our cosmetic industry are also exposed in the actual production and operation,which are mainly reflected in the support system of mating technology that still needs to be improved;unbalanced development of industry,generally small scale of enterprises,and not strong consciousness of entity responsibility;weak basic research of industry,serious homogeneous competition of product,lack of core competitiveness and so on.They are analyzed as follows:

1.2.1 The support system of mating technology of new regulations that still needs to be improved

Due to the characteristics of rapid renewal,rapid consumption and relatively low safety risk,the cosmetics objectively need to correspond to a scientific and efficient pre-market management system.The introduction of new regulations will greatly improve the shortcomings of original supervision mode and adapt the development needs of current industry.However,the support system of mating technology of supervision still needs to be continuously improved to truly implement the new regulations.

1.2.2 Unbalanced development of industry,generally small scale of enterprises,and not strong consciousness of entity responsibility

The scale of our cosmetic manufacturing enterprises is generally small.The above data show that about 90% of our cosmetic manufacturing enterprises belong to enterprises below designated size.Due to subjective and objective reasons,some enterprises have a weak consciousness of taking the initiative to assume entity responsibility and weak awareness of quality management in the production process,and there are security loopholes in production management.Additionally,the crackdown on violations in Regulations on Hygienic Supervision of Cosmetics is weak,and violations of laws and regulations occur from time to time.

1.2.3 Serious homogeneous competition of product,and lack of core competitiveness

Cosmetic industry is a highly innovative industry driven by science,which needs a large investment in early stage to produce products that meet the demands of all parties.According to the report by Cosmetics Europe,there were at least 77 scientific and technological innovation institutions engaged in cosmetics research in the EU in 2018,with more than 20,000 relevant scientific researchers.The industry invested a total of EUR 2.35 billion euros in research and development,of which most large-scale enterprises spent 5% of their annual operating revenue on R&D.Large-scale cosmetic enterprises will develop nearly 10,000 product portfolios on average each year and update 25%～30% of existing products sold on the market.10% of the updated products will try to use new materials.

In contrast,our country has not yet formed a R&D system for cosmetics,and domestic-funded enterprises invest relatively little in R&D.Relevant data show that the average R&D investment of the few and large-scale national cosmetic manufacturing enterprises in China accounts for only about 3% of the main business income.

In the meantime,the original supervision system of cosmetics industry is short of policy guidance and incentive mechanism for R&D,which has also indirectly affected the R&D investment direction and R&D structure of our cosmetic enterprises,resulting in low enthusiasm and insufficient investment in the basic research such as cosmetic efficacy mechanism,raw material development and application and safety evaluation,and then resulting in serious homogeneous competition of product and lack of core competitiveness of enterprises.

Moreover,the unfavorable protection of intellectual property has further aggravated product homogeneity,counterfeit and inferior products,and unfair competition,which has brought a negative impact on the development of enterprises in the industry and exacerbated rat race of the industry.

2 The guiding ideology,implementation principles,development goals and strategic measures of the cosmetics industry during the “14th Five-Year Plan”

2.1 Guiding ideology

The economic development trends and the social development trends in China should be grasped to guide the high-quality development of the industry.The guidance of Xi Jinping Thoughts on Socialism with Chinese Characteristics for a New Era should be adhered to,the spirit of the 19th National Congress of the Communist Party of China and the 2nd,3rd,4th and 5th Plenary Sessions of the 19th Central Committee should be deeply implemented,the deepening of the supply-side structural reform should be taken as the main line,the reform and innovation should be taken as the fundamental driving force,the satisfaction of people’s increasing needs for a better life should be taken as the fundamental goal,and a large domestic cycle construction should be well made for the market segments of cosmetics,making contributions to a good start of the overall construction of a socialist modern society.

2.2 Implementation principles

The following principles should be grasped for the development of cosmetics industry during the“14th Five-Year Plan”:Consumer demand should be adhered to as the starting point and ultimate goal.Cosmetics are consumer goods that can meet people’s demand for beauty,and the cosmetics industry should take people’s yarning for a better life as the struggling goal of industry development,constantly enhance the ability to meet consumer demand,expand domestic demand and dig the potential,and strive to form a new dynamic balance of demand pulling supply and supply creating demand on the basis of the gradual establishment of a unified domestic market.Adhere to the new development idea and promote the development quality of the industry.The new development idea shall run through the whole process and all aspects of the industry development integrally,accurately and completely,enhance the development power with innovation,improve the development quality of the whole industry with coordination,ensure the sustainability of the industry development with green,expand the new space for the industry development with opening up,and create a new situation for high-quality development of the cosmetics.

2.3 Development goals

2.3.1 Laws and regulations

The promulgation and implementation of the Regulations on Supervision and Administration of Cosmetics means that a unified,scientific and efficient cosmetics supervision and administration system is coming,and the ecosystem of China’s cosmetics industry is about to usher in a round of reform and reconstruction,which will provide policy fertile soil and management support for further standardizing market competition of the cosmetics industry,promoting the industry to continuously improve product quality and safety and creating a healthier and better business environment,and will have a far-reaching impact on the future of our cosmetics industry.

In the “14th Five-Year Plan”,the top priority of our cosmetics production and operation enterprises is to pay attention to the study of laws and regulations,observe laws and disciplines,strengthen the entity responsibility,establish and improve the internal management system,increase R&D investment,adhere to scientific and technological innovation,and continue to consolidate the quality change,efficiency change and power change of the industry.

2.3.2 Science and technology

After the development of the “13th Five-Year Plan”,the R&D ability of our cosmetics industry has been greatly improved,especially some large-scale enterprises have established a relatively complete R&D system.However,from the perspective of the entire industry,basic research is still weak,homogeneous competition of product is serious,and core competitiveness is lacking.

During the “14th Five-Year Plan”,the industry urgently needs to make R&D facing multi-disciplinary and high-level research teams for high-end cosmetics manufacturing,such as chemistry and chemical engineering,life science,dermatology,biotechnology and pharmaceutical engineering.Scientific and technological innovation should be adhered to,the latest cutting-edge scientific and technological development and its promotion and application in the cosmetics industry should be focused,and high-quality development should be strengthened.

2.3.3 Channel innovation

Before the emergence of the Internet e-commerce industry,international cosmetics brands have focused on the construction of offline marketing channels,and quickly established industry barriers relying on their strong brands,financial strength and offline marketing experience.With the rapid rise of mainstream e-commerce platforms such as Tmall,Vipshop,and JD.com,the marketing ideas of cosmetics retail are no longer limited to offline.Domestic brands have broken through the restrictions on product sales channels with the help of mainstream e-commerce platforms,and at the same time have achieved rapid surpassing on the subdivided tracks with the help of their local advantages and rapid response advantages.

The Internet e-commerce industry is currently in a period of rapid development.Relying on their natural advantages in information display,information dissemination,and information sharing,the Internet e-commerce platforms have provided new marketing ideas for the retail industry.Under the market pattern where international cosmetics brands dominate,the rapid development of Internet e-commerce platforms and their unique cost advantages have become an important way for domestic brands to break the original solidified competition pattern and participate in international competition.

In the context of the continuous growth of industry demand in the future,domestic brands that have a deep understanding of domestic consumers,own rich e-commerce channel operation and marketing experience and dominate e-commerce channels will continue to grow in the lead.At the same time,the rise of import cross-border e-commerce has not only brought more cosmetics that can be chosen by Chinese consumers,but also the development of export cross-border e-commerce has brought broad channels for Chinese cosmetics manufacturing enterprises to enter the world market.However,there are many problems in emerging channels,such as lack of effective regulatory measures,excessive publicity and so on.

During the “14th Five-Year Plan”,the industry should,on the one hand,strengthen the supervision of emerging channels for radical reform.On the other hand,the industry should continue to trace the application of new technologies in market sales and carry out channel innovation.

2.3.4 Brand building

In 2016,China Association of Fragrance Flavor and Cosmetic Industries established a brand building committee,which has played a great promotion effect on brand building of the industry.However,international cosmetics enterprises have significant scale advantages in terms of brand influence,product matrix,R&D strength,and bargaining power,as a result,the leading position of international cosmetics enterprises in the global cosmetics industry is relatively stable.In contrast,it seems that the brand influence and product matrix of Chinese cosmetics enterprises is very thin,and most enterprises only have 1-2 better brands.It is still difficult to break through the pressure from international competition in the short term.

During the “14th Five-Year Plan”,the industry should keep carrying forward the brand building,and enterprises should focus on enriching product categories and building a multi-dimensional brand matrix.

2.3.5 Advantageous regions construction of cosmetics

After the development of the “13th Five-Year Plan”,our cosmetics have formed advantageous clusters in Guangdong,Shanghai,Zhejiang,Jiangsu and Fujian.The Oriental Beauty Valley in Shanghai and the Beauty Makeup Town in Zhejiang are precedent,and the Baiyun Beauty Bay in Guangzhou is also accelerating its development.

During the “14th Five-Year Plan”,the industry should continuously strengthen the construction of various advantageous regions of cosmetics and create multiple industrial clusters integrating cosmetics R&D,design,production and brand incubation.In the meantime,the industry should also create distinctive cosmetic advantageous regions according to the characteristics and level of cosmetics development in each region,so as to avoid blind and machine-made construction.

2.3.6 Talents training

Talent is the foundation of industry development,and the scientific and technological development and the transformation and upgrading of the industry have put forward very high requirements on the knowledge structure and skills of talents.During the “14th Five-Year Plan”,the industry should adhere to the people-oriented idea,improve the system and mechanism of talent training,and form a mutually supplementary pattern of degree education,vocational education and continuing education.The degree education comprehensively revises the training plan,so as to adapt the demand for talents in the development of modern cosmetics.Vocational education and continuing education should incorporate the application of new technologies and new business types in the cosmetics industry,and vigorously improve the knowledge and skills of practitioners.

2.4 Strategic measures

2.4.1 Laws and regulations

The study of new regulations and their supporting laws and regulations,departmental rules and normative documents should be strengthened to adapt to new requirements as soon as possible,seize new opportunities and promote the sound development of the industry.

The consciousness of entity responsibility of enterprises should be strengthened,the industry self-discipline should be enhanced,and production and operation activities should be in accordance with the law.It is necessary to have quality and safety management capabilities and systems that match the main responsibility for product quality and safety,as well as risk monitoring and adverse reaction monitoring capabilities and systems.

The industry should actively participate in the construction and revision of various standards for cosmetics,encourage enterprises to establish scientific and practical standards that are higher than the industry standards and national standards,and participate in the construction of a safety database for cosmetic raw materials.The safety risk of cosmetics mainly comes from the safety risk of cosmetic raw materials.Safe cosmetic raw materials will greatly reduce the safety risk of cosmetics.However,the construction of safety database for cosmetic raw material has a lot of work to do,which is also a longterm work.The industry should actively participate and make contributions,especially form standards in the front ranks of the world in the field of characteristic plant resources in China.

The new regulations respectively implement registration and filing management of the cosmetic raw materials according to the level of risk,simplify the licensing process,and ensure the rapid appearance of new raw materials on the market,which is also the encouragement for the innovation of new raw materials.No matter from the market,industry policy or national strategy,it is a good time for domestic cosmetics raw material manufacturing enterprises.Meanwhile,it is also a test and pressure for the improvement of the quality.The efficacy and stability of some domestic raw materials are slightly inferior to those of imported raw materials,so it is still necessary to strive to catch up with the standards of large international enterprises in terms of quality and innovation.Under the encouragement of the new regulations,cosmetics manufacturing enterprises should also independently or in collaboration with R&D institutions and raw material manufacturing enterprises to carry out core raw material innovation,so as to improve their core competitiveness and brand effect.

The personalized and customized cosmetics and the cooperative and compatible management model of cosmetics and other fields(instruments or tools)should be explored to build a dynamic balance between innovation and supervision,create new industry growth points,and meet the increasingly refined cosmetic needs of consumers.

2.4.2 Science and technology

Basic research.The development of dermatology and biology constantly reveals the mechanisms of skin aging,lesion,regeneration and treatment.These new discoveries provide a clearer scientific basis for the research and development of cosmetics and become an important theoretical basis for the research and development of modern cosmetics.Frontier sciences such as chemistry,new materials,dermatology,pharmacy,microbial engineering,fermentation engineering and genetic engineering,and fashion design and aesthetics have been continuously integrated into the beauty makeup industry.

The industry should strengthen the research on skin aging mechanism,human aging model and human scalp/hair health,and strengthen the frontier basic scientific research related to skin moisturizing and whitening such as molecular mechanism and molecular structure-function relationship.The genetic engineering research should be strengthened to form a personalized skin care.The skin micro-ecological research should be strengthened to reveal the micro-ecological benchmark of healthy skin and the molecular mechanism of skin micro-ecological regulation.Modern science and technology are used to carry out the research on the component identification of Chinese characteristic plant resources and the absorption and transmission mechanism of effective components.The database of Chinese skin,scalp and hair should be built.The understanding of the important impact of social science,human science,fashion design,aesthetics and other disciplines on the development of cosmetics industry should be improved to strengthen the basic research in relevant social,humanistic,psychological and other fields.

Key technology.Green,safety and efficiency have become the main trends in the research and development of cosmetics and cosmetic raw materials.

Benefiting from the use of microorganisms as raw materials,the stable and controllable superior biological fermentation technology with low cost is becoming the R&D focus of cosmetics and cosmetic raw materials.With the development of bioengineering technologies such as synthetic biology and gene editing,its application in cosmetics research and development has a promising future.Synthetic biotechnology can reconstruct the metabolic pathways of biotechnology-derived raw materials in microorganisms,so as to realize the efficient synthesis on an industrial scale.At present,important biotechnology-derived raw materials on the market can be manufactured through biosynthesis or combination.The bio-manufacturing technology based on microbial fermentation engineering as the core should be developed.Biotechnology-derived raw materials with natural properties,strong safety and diversified efficacy will enter the market in large numbers.The research and formulation of the access threshold of relevant regulations and standards should be accelerated to ensure the transformation and upgrading of the industry.

The research and development of cosmetics and cosmetic raw materials based on our characteristic plant resources has become a hot spot.Plant extracts have a large number of bioactive substances.The substances such as polyphenol,flavonoid,terpene and polysaccharide extracted from plants have been widely used in skin care products with functions of moisturizing,freckle removing and whitening.There are many ancient prescriptions that have good beauty and skin care effects in China and are gradually used by the cosmetics industry,which has become a major trend in the current development of cosmetics.However,there are many challenges in the aspects of refinement,homogenization and greening of plant extract raw materials in our cosmetics industry,such as the separation and purification of natural cosmetics raw materials and the removal of micro-trace impurities.The industry should speed up the development of efficient separation and purification technology of plant extracts,such as the construction and application of separating media(materials)with high identification ability.The industry should vigorously develop the plant resource materials from the perspective of comprehensive utilization of plant components and system construction.

Domestic toners have big problems in terms of particle size,uniformity and coloring,and high-end toners rely heavily on imports.The industry should increase research and development on powder surface treatment technology.

The docking of cosmetics industry with Internet technology and artificial intelligence technology should be strengthened to realize the fast and efficient screening of functional active molecules;the frontier technologies of bioengineering such as efficacy analysis based on bionic simulation,gene chip technology and 3D skin cell model technology will be developed rapidly and widely used in the research of action targets of efficacy components,screening of efficacy components,safety evaluation of efficacy components and the development and preparation of customized cosmetics.

The efficacy components in cosmetics are often sensitive to light and heat,easy to oxidize and decompose.Therefore,these efficacy components are easily lost in the process of processing and preservation.The new coating and delivery system will greatly improve the stability of the efficacy components of cosmetics and become a key technology for the development of efficient cosmetics.Micro-nano encapsulation and delivery technology can effectively protect the active ingredients of cosmetics and prevent them from inactivation under light,heat and other storage conditions.The application of some emerging emulsification encapsulation technologies in cosmetics should be accelerated,such as pickering emulsification technology,membrane separation emulsification technology,micro-fluidic control preparation technology,etc.

Big data,5G and AI technology will have a far-reaching impact on cosmetics research and development,marketing models and consumer experience.The application of big data,5G and AI technology in cosmetics should be emphasized to energize the scientific and technological innovation of cosmetics.

Smart manufacturing.The Industrial 4.0 Era is a kind of industrial change caused by the use of information technology,that is,the era of intellectualization.The core of intellectualization is the digitization of industrial production.The intellectualization of a modern smart factory is mainly reflected in smart factories,smart production and smart logistics.

The development of domestic cosmetic machinery should be accelerated to meet the demand of daily chemical factories for smart manufacturing.The enterprises are encouraged to make full use of new generation information technologies such as 5G,blockchain,Internet of Things,cloud computing,big data and artificial intelligence to realize digital R&D,intelligent production and intelligent management,and form an intelligently regulated industrial production process and multi-parameter online intelligent monitoring process.The enterprises are promoted actively to go to the cloud and build an industrial Internet platform for the cosmetics industry,and the cluster and collaboration of upstream and downstream enterprises in the industrial chain are promoted to strengthen the optimization and control of supply chain management.The production technology is combined with process system engineering to increase the total production volume,reduce production costs,improve the quality and stability of cosmetics,and achieve effective control of the cosmetics production process.

The Association will also strengthen resource coordination and platform construction in the above-mentioned basic research,key technology and smart manufacturing,and help the industry overcome difficulties for technological innovation.

2.4.3 Channel innovation

The industry should constantly track the application of advanced technology and business types in the production and operation of cosmetics.On the premise that consumers voluntarily disclose their relevant information,big data,5G and AI technology are used to accurately describe the individual needs of consumers,improve service quality,and strengthen research on the changes caused by big data,5G and AI technology to the marketing model of this industry.At the same time,the flat,platform-based and flexible advantages brought by information technology to the enterprise organization are used to arrange production,storage,distribution,logistics and after-sales,so as to improve the operation efficiency of the enterprise organization.

In view of the fact that the import growth rate of our cosmetics has been significantly higher than the export growth of cosmetics in recent years and the trade deficit has been widening year by year,and on the basis of strengthening the construction of “Three Products” in our cosmetics industry and consolidating product quality and safety,we should be good at making use of the historical opportunities of deepening opening-up and cooperation,seize the opportunities brought by channel innovation,and use the export cross-border e-commerce platform to seek diversified business opportunities,and on the basis of nearly five-year development(cosmetics has always been the top 10 products in the sales of export cross-border e-commerce platforms from 2016 to 2019,but behind clothing,household,kitchen supplies,electronics and other categories),move forward to the top of the list,promote our cosmetics to a higher level by exporting cross-border e-commerce,and help build a domestic and international double-cycle development pattern.It should also be noted that with the upgrading of consumption and the intensive introduction of national favorable policies,import cross-border e-commerce is showing a rapid growth trend.In 2019,the transaction scale has reached RMB 2.47 trillion yuan,an increase of 30% on year-on-year basis,and cosmetics is none other than one of the consumer goods that account for a large proportion in the transaction scale of import cross-border e-commerce.Under the domestic and international double-cycle development pattern,import cross-border e-commerce is conducive to attracting overseas cosmetics consumption to return and supplement the domestic cosmetics consumption market.However,different from the cosmetics that are produced and operated at home and need to meet the relevant regulatory policies of Chinese cosmetics,import cross-border e-commerce cosmetics are indeed in a regulatory vacuum state.If things continue this way,substantial regulatory inequality will form,which should be carefully considered by the industry.

2.4.4 Brand building

A broad environment conducive to brand development should be built continuously.Under the guidance of relevant departments,a cosmetics brand evaluation system should be established,and the construction of national cosmetics brands should be promoted to integrate Chinese culture,art,color and life aesthetics into the product industrial design,and the penetration of Chinese characteristic plants resources should be paid attention to enhance competitiveness in the international market.

Enterprises should strengthen the design of brand matrix system,continuously dig into the segmented needs of consumers,build new and cutting-edge brands that meet the increasingly segmented needs of consumers,and strengthen the construction of scale advantages.

Brand is created,and quality is the basis of brand.We should adhere to research and development innovation,improve quality on the basis of increasing varieties,and then promote brand building.

2.4.5 Advantageous regions construction of cosmetics

The construction of cosmetics enterprises in advantageous regions should be strengthened continuously.The technical platform integrating “high-end R&D and design,inspection and testing,safety and efficacy evaluation,public service technology and related service support” should be built emphatically,the high-quality and rapid development of regional cosmetics industry should be promoted to facilitate the overall quality and efficiency improvement of our cosmetics industry from point to area.

2.4.6 Talent training

The construction of key cosmetics disciplines should be strengthened to provide talent guarantee for various research,production management and marketing of cosmetics.

Degree education.Cosmetics has gradually developed from a relatively single discipline of fine chemical engineering to a cross-discipline integrating chemistry and chemical engineering,life sciences and biotechnology,materials science and dermatology.Therefore,the cross-disciplinary characteristics of cosmetics should be reflected in the talent training program,and the characteristics of the management and marketing of cosmetic industry,as well as the impact of future technologies such as big data and artificial intelligence on the cosmetics industry should be taken into consideration.The new talent training program should continuously improve the knowledge structure and ability of talent training to meet the demand of the modern cosmetics industry for talents.

Vocational and continuing education.Vocational and continuing education of the industry should be strengthened,and the overall quality of personnel should be improved through formulator training,management ability improvement,legal and regulatory training,and inspection and inspection level improvement.

Talent introduction.Communication with governments at all levels should be carried out actively to strive for more preferential policies for the introduction of talents in the cosmetics industry;in the advantageous regions of cosmetics industry,contacts with international excellent talents should be established by actively organizing and participating in various domestic and foreign cosmetics-related conferences,so as to establish cooperative relations with domestic and foreign excellent talents in various forms;domestic and foreign talents with financial and capital market experience should be introduced actively.

Talent training.Talents are fundamental to the development of the industry.The industry association will build a talent training platform,focus on the training of innovative talents,management talents and service talents,and provide human resources guarantee for the sustainable development of the industry.

2.4.7 Matters to be considered carefully

The COVID-19 epidemic has made the complicated international economic and political situation even more confusing,and the unstable and uncertain factors have increased significantly.Ⅰn the face of a severe and complex situation,our cosmetics industry should adhere to the bottom line thinking,which should not only rely on the international cycle to promote development through openness and listen to the voice of the world,but also pay special attention to green consensus on low-carbon economy,animal welfare and ecological civilization.More importantly,we should take the general circle at home as the main body,consolidate our own industrial foundation,make up for the weakness of the industrial chain,avoid the adverse effects brought by international economic and political fluctuations and the comments of bad international organizations,and be cautious of the production and operation risks caused by the rise in the price of cosmetics raw materials and the cut-offof supply in 2020.Let’s work together to promote the sustainable development of the industry.