Pest analysis of cosmetic industry in china

Respondents reported similar plans for makeup purchases. In terms of international trade, China had exported cosmetic products with an overall value of million U.

Other factors which can be assessed are Environmental and Legal factors. To make business, investment, and strategic decisions, you need timely, useful information. The country has strong current account surplus and high foreign reserves. Political Factors Political factors which impact China are: Consumer confidence and its affect on aggregate demand Production level.

Tell us about yourself. Many foreign brands have entered the mainland market by acquiring domestic brands and making use of their distribution networks.

The survey also found that female and male consumers spent RMB2, and RMB1, respectively, on online purchases of skincare products and cosmetics on average in the preceding year.

Other social factors are consumer lifestyles, education, religion, and emigration.

China’s Cosmetics Industry: Opportunities and Challenges for Foreign Investment

In conclusion, I can say based on this PEST analysisthat China is a flourishing market with the need for some small changes. AlphaWise, Morgan Stanley Research With Chinese travel primed to increase even more, overseas cosmetics spending could become a major factor in global cosmetics companies' performance.

The labor cost in China is extremely low. This rapid increase was paralleled by a sharp decline in department store salesa strong hint that Chinese consumers of cosmetic products are putting growing emphasis on online retailing channels.

PEST Analysis of China

China Retail Industry Report In this special edition of China Briefing, we provide an overview of the retail industry in China and the procedures for setting up a retail shop, focusing specifically on brick-and-mortar physical retail stores.

For example, population growth and age distribution fluctuate.

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Much as shoppers in developed countries around the world, Chinese consumers appreciate the convenience of online shoppingthe ability to easily compare prices, and most importantly, the opportunity to save money.

Furthermore, growing awareness of the potential impacts of climate change is affecting how companies operate and the products they offer, both creating new markets and diminishing or destroying existing ones.

Conscious that western brands do not necessarily cater to their tastes or needs, Chinese consumers have turned to popular Korean brands more suited to Asian complexions. Although the industry saw its lowest growth rate in since They aim to regain market share by relaunching these upgraded and repackaged items at much higher prices.

Importantly, it is growing at a faster rate than the female market.

How The PESTEL Analysis Affects The Cosmetics Industry

Apart from distributing through shopping centres and supermarkets, it also launches its products in local pharmacies. Although there has been negative news about the quality of cosmetic products from world-renowned brands, mainland consumers still favour international brands.

These can determine barriers to entryminimum efficient production level and influence the outsourcing decisions. SWOT analysis, forecast and scenario analysis, and risk analysis of China are also included in the report.

Lifestyle has great influence on the use of Pepsi products, and their advertisements are designed accordingly. In comparison, the value of personal care and cosmetics products imported to China from the United States amounted to about million U.

Certainly, companies that cater to higher-end tastes, as well as those that can maintain a basket of distinct brands to accommodate changing styles and fashion trends. With domestic brands only accounting for around 10 percent of the cosmetics market, there is a clear gap in the market for international companies.

Demographic factors include gender, age, ethnicity, knowledge of languages, disabilities, mobility, home ownership, employment status, religious belief or practice, culture and tradition, living standards and income level.

Family size and social behaviors often impact how decisions are taken. Social factors include the cultural aspects and health consciousness, population growth rate, age distribution, career attitudes and emphasis on safety.

The sales of cosmetic on online shops in China had amounted to around billion yuan bywith a growth rate of Domestic purchases of cosmetics in China have actually been declining since Taobao is the largest local e-commerce website, and many people spend a lot of their things from the site.

· Industry players have been using Facebook for various pop-up shop concepts and smartphone applications including virtual cosmetic mirrors. External technological developments will continue to reshape the competitive landscape of the  · In the past one decade, the Chinese government attaches great importance and focus to the development of e-commerce in the most populous country, for example, on issuing the Summaries of the Middle/Long Term Science and Technology Development Plans of China and the Development of Information Industry Plans in the Eleventh Five-year and Long  · The study presents annual trend analysis that highlights market size, industry dynamics, (China, Brazil) which are turning into huge, emerging Markets.

These emerging The cosmetic and toiletries producers face strong challenges and obstacles in their expansion in these emerging markets, which hold The PEST analysis method has been successfully applied by Pepsi, which has obtained economic advantage in its industry.

The PEST analysis method and examples specific to PEST Analysis (Political, Economic, Social, and Technological) A PEST analysis is an analysis of the external macro-environment that affects all firms including banking industry.

P.E.S.T. is an acronym for the Political, Economic, Social, and Technological factors of the external PEST analyze of cosmetics business in China.

In order to reserve the objectiveness of value judgment, simultaneously, to give effective advice to the company which we selected before, we decided to use PEST to analysis environment in cosmetics industry.

Pest analysis of cosmetic industry in china
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