“Imported generic cosmetics are exempt from animal testing from May 1st.”
As soon as the "Regulations on the Administration of Registration and Filing Data of New Cosmetics Raw Materials" issued by the State Drug Administration of China, imported cosmetic brands moved.
Recently, Natura&Co, a Brazilian beauty group, revealed in its Q4 financial report for fiscal year 2020 that its British brand The Body Shop and Australian brand Aesop will enter the Chinese market and will complete product registration in China in the first half of this year. Previously, the above two brands did not officially enter the Chinese market because they did not meet the requirement of animal testing for imported cosmetics.
Is a new round of imported beauty makeup brands coming to China?
With gradual relaxation of policies, animal testing has an "alternative method"
According to the Regulations on Cosmetics Supervision and Health promulgated by the Health Administration Department of the State Council in 1989, China has always required all imported cosmetic personal care brands to carry out animal testing of their products. This move has shut down many imported cosmetic brands that oppose animal testing.
In recent years, relevant departments have gradually relaxed the restrictions on imported cosmetic personal care products.
In 2014, China no longer required domestic non-special-purpose products to be tested for animals, but still required all imported cosmetics and domestic special-purpose products to go through animal tests to ensure the safety of products.
Four years later, cruelty Free International (CFI) has reached a cooperation with relevant Chinese departments to exempt imported cosmetics from animal testing in China to help more "animal testing". "International beauty brands enter the Chinese market.
In January this year, the Federation of French Beauty Enterprises (FEBEA) said that France will become the first EU country to be exempted from animal testing for ordinary cosmetics to export to China. "Chinese authorities have agreed that French shampoo, shower gel, blush, mascara, perfume and other personal care and cosmetic products will no longer enter the Chinese market. Animal testing is needed.
The news has caused calls in the industry: "This will help French cosmetics enter the Chinese market more smoothly and quickly."
On March 4, the State Food and Drug Administration issued new regulations to further liberalize the requirements for animal testing cosmetics. According to the regulations, "full consideration and adoption of the opinions of some countries and regions proposed by importing enterprises that have implemented the ban on the marketing of cosmetic animal tests, and are unable to submit animal test materials, and will conditionally accept toxicological test data of animal substitution methods." This move has created favorable conditions for brands advocating "opposing animal testing" to enter the Chinese market.
However, it should be emphasized that the opening of the gate in the new regulations does not mean lowering the quality of imported beauty products.
The Provisions require that if animal substitution methods are used for toxicological safety evaluation, the toxicity of new raw materials should be evaluated by selecting appropriate integrated testing and evaluation methods (IATA) according to the structural characteristics of the raw materials and specific toxicological endpoints. Animal substitution test methods that have not yet been included in China's Cosmetic Safety Technical Code should be the methods already included by the international authoritative alternative method verification agency, and the certification data that the method can accurately predict the toxicological endpoint should be submitted at the same time.
Curve layout of the Chinese market, open stores online, and build supply chains offline
In recent years, China's beauty makeup personal care market has grown rapidly, and imports have also surged. According to the data of the General Administration of Customs, the import volume of beauty cosmetics and toiletries in 2020 was 451,100 tons, an increase of 3.7% year-on-year, and the import amount was 140.04 billion yuan, an increase of 29.7% year-on-year.
Against this background, many imported cosmetic brands have fallen into a dilemma between "animal testing" and entering the Chinese market.
For example, The Body Shop had previously been stationed at duty-free shops at Chinese airports. However, because it still faces random animal test sampling, the brand's zero cruel image is damaged, and it has been boycotted by overseas animal lovers. In 2014, the stressed The Body Shop brand withdrew from the Chinese market.
NARS, which has always opposed animal testing, was also questioned by consumers when it entered the Chinese market in 2017. NARS responded, "We must abide by the laws and regulations of the place of business, including China. The decision to enter the Chinese market is because we believe it is very important to enable Chinese fans to access and understand NARS products."
Giants such as Procter & Gamble, Estee Lauder, L'Oreal, Unilever, Shiseido and Avon have all experienced similar experiences since entering the Chinese market. In 2019, Procter & Gamble joined the BeCrueltyFree campaign to support the global ban on cosmetic animal testing, advocating for the ban on animal testing of cosmetics in all major cosmetic markets worldwide in 2023.
According to China's relevant regulations, "animal testing" is only for imported cosmetic personal care products sold in physical stores, but does not require brands that directly sell online. Therefore, in the past few years, many import brands have chosen to enter the Chinese market by entering Tmall International to avoid the requirements of animal testing.
In July 2019, The Ordinary officially opened Tmall's overseas flagship store. With 5% caffeine eye essence, 10% nicotinamide essence and other explosive products that sell more than 10,000 pieces every month, it has successfully spread the Chinese market. In 2020, Milk Makeup, an American beauty makeup brand that advocates "no animal ingredients and no animal testing" and MECCA, an Australian beauty retail brand that advocates "100% animal-free experimental testing", have also opened Tmall overseas flagship stores. At present, two brand stores The number of fans is more than 20,000.
When entering the Chinese market, the American makeup brand Nudestix chose to cut directly from the upstream port, built its own supply chain in the Chinese market, and produced goods locally in China without restrictions on animal testing.
Imports may usher in a new wave of China.
Many industry insiders said that after May 1, the exemption of animal testing for imported ordinary cosmetics will be officially implemented, which may cause a new wave of imported brands to enter China.
First of all, Chinese consumers have a consumer demand for imported beauty brands that advocate "no animal testing". For example, LUSH Lanshu and The Ordinary, beauty brands with "natural characteristics", have become popular in the agency purchase channel long before entering the Chinese market. Pinguan APP shows that at present, in the overseas flagship store of LUSH Lanshu Tmall, a number of products with the highest monthly sales are marked with the relevant patterns of "strike animal testing", and the shampoo soap that is the first hot in the store is also marked with "zero cruel cosmetics". The Ordinary store has 619,000 fans.
Secondly, a large number of imported beauty makeup brands have been "along time" in the Chinese market. Judging from the pressure of Procter & Gamble, Avon and other giants entering China under pressure, and a large number of brands opening Tmall overseas flagship stores, imported beauty brands have a strong will to expand the Chinese market.
"(Regulations) has a great promotion to European and American cosmetics entering the Chinese market. Especially it will attract brands that mainly focus on organic and naturalism. Lu Yanqing, general manager of Nanjing Baguazhou Cross-border Service Industry Co., Ltd., said so.
At the same time, the filing process is reduced, and imports can enter China faster. Xie Shuyuan, general manager of Baodi China, told Pinguan APP that once the new regulations are implemented, it means that there is no need to go through a long filing process in the future. When the headquarters launches new products, the domestic market can also synchronize the new products faster. Lu Yanqing believes that after the implementation of the new regulations, there are still many preparations in the early stage, and the impact will not be obvious in the short term.
Natura & Co. Chairman Roberto Marques said in his financial report that he had a clear time plan for Aesop and The Body Shop, which is expected to open their first store in Shanghai in the fourth quarter of 2021, while The Body Shop's first store in China is expected to open in 2022.
However, it can be foreseen that with the layout of more imports in the Chinese market, the competition pattern in the domestic beauty market will further intensify.
"Once the policy is liberalized, it is equivalent to opening the door and accelerating the introduction of high-quality brands." Ye Guang, retail practice coach and founder of Photosynthetic Society, said that brands that insist on not doing animal testing, using temperature labels may be more likely to gain young or similar consumer recognition.
At the same time, Ye Guang also said that although the market sales volume will be diverted, it will also strengthen the popularity and recognition of consumers with product efficacy, composition and other concepts, and will bring new activities and member maintenance methods. In the future, domestic brands can improve their competitiveness by analyzing the characteristics of new import brands in China, finding their own differences and strengthening publicity.
“It takes a lot harder to make products, but don’t panic.” In Xie Shuyuan's view, the more brands there are in the future, the more rational consumers are, and the more important the product power is. For brands, it is ultimately up to the product to speak.
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