HONG KONG, Dec. 14, 2010 /PRNewswire-Asia/ -- China suppliers of beauty and cosmetic products are expanding their reach by tapping new markets and using natural, organic and mineral ingredients. This is according to Global Sources' (Nasdaq: GSOL) China Sourcing Report: Beauty & Cosmetics (www.chinasourcingreports.com/beautycosmetics).
The Report, which covers makeup for the face, lips and eyes, application brushes and tools, skin and nail care, cosmetic bags and cases, and facial appliances, reveals that suppliers are confident of generating more orders in the year ahead.
Publisher of the Report, Livia Yip, said: "Manufacturers in China's beauty and cosmetics industry eagerly anticipate export growth of at least 20 percent in the next 12 months. This follows exports of makeup and skin care products shooting up by 22 percent year-on-year to $358 million in January-June 2010, according to industry estimates. China customs statistics show outbound shipments in the brushes, applicators and nail care line soaring by 34 percent to $55.4 million in January-May.
"Optimism is strong despite less-than-brilliant growth prospects in traditional markets such as the United States and Europe. Suppliers are compensating quite successfully by tapping much deeper into emerging markets such as Asia, the Middle East, Russia and South America," added Yip.
China Sourcing Report: Beauty & Cosmetics shows that manufacturers' efforts to broaden revenue sources also include venturing into new product lines. Companies are purchasing special machinery for production of natural, organic and mineral cosmetics that are rising in popularity. In addition, innovative packaging that applies makeup directly is being used to attract more buyers.
Suppliers launch strategies to deal with challenges
The upbeat outlook prevails even with several problems confronting the industry. Of China suppliers surveyed for the Report, 37 percent pointed to rising labor costs as their main challenge. Stricter overseas standards, design piracy and the yuan-U.S. dollar exchange rate are also perceived as threats to competitiveness.
Strategies for coping include upgrading equipment and asking employees to work overtime, giving greater scrutiny to ingredient quality, and issuing quotes with shorter validity periods to avoid currency losses.
The increased labor and material outlay also forced 85 percent of suppliers surveyed to push up prices in recent months. Markups at most companies exceeded 5 percent.
Other trends revealed by China Sourcing Report: Beauty & Cosmetics include:
- 89% of suppliers are increasing capital expenditure
- 64% of suppliers offer better packaging
- 52% of manufacturers have improved operating efficiency to boost export capability
- Some companies see shorter development times as the way to gain an edge
- Men's skin care is attracting more manufacturers
- Suppliers are enriching staff training to upgrade work
Supplier profiles, price forecasts, and the latest beauty and cosmetic products for export
The 117-page China Sourcing Report: Beauty & Cosmetics provides detailed profiles of 27 suppliers with verified manufacturing and export credentials. It also includes a Product Gallery featuring 134 of the most popular export models, with key specifications and full-color pictures.
The Report's surveys, price trends and supply forecasts aim to help buyers make better-informed purchasing decisions.
Specialized Global Sources websites, face-to-face events, trade magazines and research reports
China Sourcing Reports are part of Global Sources' sourcing and product information services. These include Global Sources Online (http://www.globalsources.com), China Sourcing Fairs (http://www.chinasourcingfair.com), Private Sourcing Events (http://www.PrivateSourcingEvents.com) and Global Sources monthly magazines (http://www.globalsources.com/SITE/MAGAZINES.HTM).
For more information about Global Sources' products and services that connect quality buyers with verified suppliers, visit http://www.corporate.globalsources.com.
China Sourcing Report: Beauty & Cosmetics is available for purchase at www.chinasourcingreports.com/beautycosmetics .
Free information about China suppliers of beauty and cosmetic products can be found at http://www.chinasuppliers.globalsources.com/china-suppliers/Cosmetic.htm .
About Global Sources
Global Sources is a leading business-to-business media company and a primary facilitator of trade with Greater China. The core business uses English-language media to facilitate trade from Greater China to the world. The other business segment utilizes Chinese-language media to enable companies to sell to, and within Greater China.
The company provides sourcing information to volume buyers and integrated marketing services to suppliers. It helps a community of over 967,000 active buyers source more profitably from complex overseas supply markets. With the goal of providing the most effective ways possible to advertise, market and sell, Global Sources enables suppliers to sell to hard-to-reach buyers in over 240 countries.
The company offers the most extensive range of media and export marketing services in the industries it serves. It delivers information on over 4.7 million products and more than 262,000 suppliers annually through 14 online marketplaces, 13 monthly print and 18 digital magazines, over 80 sourcing research reports and 20 specialized trade shows which run 57 times a year across 9 cities.
Suppliers receive more than 192 million sales leads annually from buyers through Global Sources Online (http://www.globalsources.com) alone.
Global Sources has been facilitating global trade for 40 years. Global Sources' network covers more than 60 cities worldwide. In mainland China, Global Sources has about 2,700 team members in more than 40 locations, and a community of over 2 million registered online users and magazine readers for its Chinese-language media.
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SOURCE Global Sources