Product summary analysis of the beauty market in 2020 and forecast for 2021

Views:58     Author:Site Editor     Publish Time: 2021-04-06      Origin:Site



Why share the beauty category? This is because, compared to other categories, beauty makeup is very suitable for spreading through the developed social media, and it is relatively easier to globalize.

Section 1: New inspiration for Amazon's beauty category


Women are the main force of consumption as well as the main force of consumption in the e-commerce market. The beauty market is a 100 billion-level market. The global beauty market has a turnover of 530 billion US dollars. By 2025, it is expected to reach 800 billion US dollars. The fashion trend of overseas beauty products: beauty equipment is becoming more and more intelligent, inclusive of beauty, consumers are pursuing true beauty. It is foreseeable that there will be more and more people who choose to work in the beauty industry in the future.


In fact, in the cross-border e-commerce industry this year, there have been one succession of good things in the beauty category. A friend of mine who is a big seller of beauty on Amazon shared with me that their company's revenue this year has increased by 100%, and the full order on Black Friday has exceeded the original expectations. In addition, there is a beauty brand that has entered Southeast Asia, and it has been selling well in Indonesia and the Philippines within three months of being on the shelves. The current trend is that many of the beauty businesses previously operated offline have begun to move to online sales in large numbers, and beauty makeup sellers are also continuously increasing.


Speaking of beauty, I have to say a big brand, I don’t know if you have heard of it. Today we are going to introduce a local American brand called: Duke Cannon, a men's grooming brand from the United States, and also a hot-selling beauty brand on the Amazon platform. Its headquarters is located in Minnesota, the United States. Duke Cannon was established in 2011 and is geared towards the male user market, providing high-end male care and beauty products.


Duke Cannon is committed to advocating the concept of "hard-working men" skin care, applying the bold and rugged temperament of men to daily care products (such as soap, beard care, cologne, lip balm, etc.), and living with men’s The taste creates a unique product smell, such as whiskey, tobacco, etc., which makes the experience more intense, and can show manliness in both the product and the breath. The company recently announced that it has received a strategic investment from Main Post Partners LP, a US private equity investment company. This brand, which focuses on male beauty products, is said to have annual revenue of approximately US$50 million.


Of course, Duke Cannon’s military values are not only reflected in packaging design. In fact, the brand also donates 5% of its net profit every year to public utilities that benefit veterans and active military personnel.


On Amazon, its product prices range from more than 10 dollars to more than 30 dollars, most of which have accumulated hundreds of thousands of reviews.


The price is very high compared to other normal soaps on Amazon's front desk. In the copywriting of Duke’s classic big brick soap, there is a special emphasis on "American characteristics" and "manliness". For example, it has been emphasized more than once that it is made in the United States. The aroma has the smell of tobacco and leather, and the size is larger than that of women's soap. More than 3 times, part of the proceeds will be donated to American veterans.


Duke Cannon is now not only sold on Amazon and independent stations, but also entered mainstream offline retailers in the United States such as Target, CVS, and Walgreens.


Duke Cannon’s investor, Main Post Partners LP, is a private equity investment company located in San Francisco, USA. It has invested in a number of emerging beauty and personal care brands, including Dr. Dennis Gross, Milk Makeup, etc., and now has invested in Duke Cannon. , It can be seen that the beauty track is very optimistic.


By sharing the Duke case, I hope to bring you some inspiration and thinking about the beauty category. In fact, in recent years, more and more cross-border e-commerce sellers have begun to flock to the ranks of beauty and personal care products, and a considerable number of sellers have experienced rapid growth. However, in terms of brand building, to be honest, most sellers are inexperienced and are all in the early stages, so even if they get good sales, they are still in a lower price range, which means that they have to rely on cost-effectiveness to win.


And Duke Cannon is an e-commerce consumer brand company that starts with brand building. It is analogous to the personality that must be emphasized when star debuts now. Cross-border e-commerce sellers can further study Duke's products and brands, and learn how they combine military and fashion elements to form a unified output of ideas, make its brand highly sticky to fashionable men, and make consumers recognize this A high-end brand.


Section 2: Consumer portraits and changes in demand for beauty products


Affected by the epidemic this year, some industries have been affected, but some industries have also been achieved. Beauty and personal care is one of the achievements. According to research, the e-commerce of beauty and personal care increased by 32.4% year-on-year, second only to food and beverages. The second part is to understand consumer portraits in the United States, Europe, and Japan.

① American Station


The consumer groups of personal care, health and beauty products cover all income ranges and age groups, among which women around the age of 18-44 are the main force; in addition, the demand for men has also increased significantly, such as beard care products that meet the needs of men And the use of habitual products has increased significantly


There are a wide range of personal health and beauty cosmetics products, including perfumes, cosmetics, hair care, sun protection, bathing, nail care, hair removal and shaving, etc. Among them, skin care products have extremely high permeability, and related products belong to continuous use and High-frequency repurchase type


Hair care and skin care products occupies an important share in the beauty and personal care categories in the United States. The repurchase rate of soap, toothpaste, shower gel, and hair conditioner is high, and the sales volume is huge. These products are very important for For everyday American families, there are needs of both men and women, young and old


In terms of market segments, men’s products and aromatherapy products (or products with the concept of aromatherapy) have formed a certain market scale, and hair dyeing products are very popular (especially for plant-based natural hair dyeing)


For American beauty and makeup consumers, gift packaging promotions are commonly used in cosmetics, and special promotions are a common method


② Europe Station


The consumer groups and consumption habits of beauty and cosmetics in Europe are similar to those in the United States. The holiday season is the time of the year when consumers are more concentrated in purchasing.


Taking the United Kingdom as an example, 40% of consumers will buy hair and beauty products during the Christmas period. However, under the epidemic, 13% and 11% of consumers respectively said they would increase their preference for personal care products and beauty products. The purchase of makeup products[3] shows a continuously increasing consumer demand.


③ Japan Station


Japanese women pay much attention to their external image, and they often go out only after applying full makeup. Full makeup here refers to water, milk, essence, sunscreen, isolation, foundation, loose powder, cosmetic contact lenses, eye shadow, eyeliner, silkworm, and eyelashes. Cream, false eyelashes, double eyelid stickers, high gloss, blush, lips, nails, plus hairstyle and clothing matching, etc. Of course, in addition to makeup, Japanese women also pay great attention to personal care and hygiene, beauty tools and toiletries. Among the ranks of fast-moving consumer goods.


In July and December every year, most Japanese companies will give bonuses to employees. The share of bonuses is generally not less than 3 months of salary, so these two months are also the peak sales period for e-commerce sellers.


In addition to these two months, Japanese holidays are also small sales peaks. Sellers in Japan can pay more attention to holiday activities.


Let’s talk about the changes below. Through the research of the beauty market, Amazon has found that consumers’ buying habits for beauty products are also changing. The purchase of beauty products has met individual needs in the past, and now it is possible to choose as many as possible. Meet many of its own needs. It specifically includes four aspects:


① One is technology. For example, with the use of technology on the blackhead device, blackhead acne has always been the most troublesome skin problem for female consumers. The first concern is the strong suction effect of the product itself with the help of technology. Amazon's front desk products have gradually changed from traditional blackhead acne needles to blackhead meters.


② Price transparency. A large part of the incentive for consumers to buy a product is whether the price of the product is eye-catching. Based on the rapid development of e-commerce, many individual users tend to purchase directly like producers. In addition, the ingredients and performance of some niche beauty brands are not inferior to internationally renowned brands. Sellers are recommending such beauty products. Very competitive price advantage.


③ Differentiation can also be said to be individualization. For a long time to come, the main consumer of beauty products tends to be millennials, and their needs will no longer be single. Take sunscreen as an example. In the past, consumers tended to choose a sunscreen with a high SPF according to their age group. Now, including in the future, consumers’ use of sunscreen has changed from traditional manual application to The spray type must have daily moisturizing, and may even choose a different sun protection index according to different travel needs. Manufacturers will develop more and more detailed beauty products to meet the individual needs of consumers as much as possible.


④ Socialization. On the one hand, manufacturers use traffic marketing such as store activities and creating beauty experts; on the other hand, they promote products through word of mouth from consumers. During this period, there is no lack of good reviews and bad reviews, but if a beauty product wants to build a good reputation and credibility, socialization is an indispensable trend.


Section 3: Infringement risk assessment and comprehensive understanding of beauty category compliance policies


With a market of hundreds of billions in front of us, it is hard for us as sellers not to be tempted, but we must also be careful of the risk of infringement. Many hot-selling beauty and personal care products have already applied for patents. Let's take a look at which products to watch out for.


1. Hair Dryer


To put it bluntly, a hair dryer is a combination of a hair dryer and a comb, which can easily create a hairstyle while drying the hair. Such a convenient and easy-to-use product has also captured the hearts of a large number of consumers, and the hair dryer has become the top seller of Amazon's beauty personal care list.


Products like hair dryers have many appearance patents, and many of them have just been authorized this year. The possibility of rights protection is relatively high. Sellers who want to enter the market must pay attention to self-examination.


2. Scalp massager (scalp massager)


Scalp massagers also need sellers to pay attention to the risk of patent infringement. This is part of the scalp massager appearance patents retrieved

3. Hair Chalk


During the home isolation period of the epidemic, people who want to dye their hair can only do it by themselves. The easy-to-operate hair dye comb is the first choice of many consumers. There will be a market if there is demand, and this hair dye comb has successfully squeezed into the Amazon hot list.

4. Facial Cleansing Brush


The role of the cleansing brush is to help clean the face and reduce the occurrence of blackhead acne. Cleansing brushes are a hot product in recent years. The explosive cleansing brushes on Amazon have been patented, and almost all of the brand's products have applied for patents.


5. Facial massager


For example, the popular refa beauty instrument on the market has a number of facial beauty instrument patents.

The previously shared items are the patent search and sharing of beauty and personal care products. Each type of product we looked at just now has a lot of appearance patents. This is a wake-up call for all sellers: before putting them on the shelves, you must conduct an infringement analysis of the products to avoid the risk of infringement.


In addition to patents, beauty and makeup products also involve complex component testing and export compliance, which is also a problem that plagues many Amazon sellers. Therefore, in the third part, we will also share the analysis of Amazon, Europe, America, and Japan cosmetics policy compliance:

1. Analysis of U.S. station beauty and makeup compliance certification

Ø Key points:


① Avoid using harmful and toxic ingredients


② Register the cosmetics voluntary registration program (VCRP, free registration) in FDA according to the procedure and confirm the completion;


Ø FDA and VCRP registration:


① The US FDA pays more attention to post-marketing supervision. Only certain categories of products require "pre-market approval", and other products only need to be registered with the US FDA;


② Up to now, FDA's requirements for cosmetics are voluntary. Through VCRP, you can access online accounts, store their registration and product information online, receive FDA information updates, list them on Amazon, and companies must register. Products must be registered before they can be listed and become commodities.


It should be noted that if the seller's products are sold in California, the seller also needs to provide a California cosmetics safety report certificate. Among them, the "California Cosmetic Safety Plan" requires cosmetic companies to declare whether their products contain ingredients that cause cancer or reproductive hazards.


Ø VCRP registration process:


① Registered cosmetics production factory/packing place, From FDA 2511 form;


② Submit a declaration of cosmetic ingredients, Form From FDA 2512;


③ Modify the product formula: If the formula is updated, within 60 days of the sale, the composition change should be submitted to the VCRP for a declaration; the product should be discontinued, and the CPIS declaration should be terminated within 180 days after the discontinuation;


Ø Coloring additives and cosmetics:


Coloring additives can be used in beauty products. It is illegal to add them incorrectly or not to use the correct dosage. At the same time, this is also a common reason why sellers of cosmetics are detained when they enter the United States;


Ø Over-the-counter drugs:


① Over the counter drugs (OTC, over the counter) depend on the "intended use" of the product, such as facial cleanser with anti-acne function, shampoo with hair growth function, etc.; and "intended use" is often based on the description and remarks on the product To judge the composition of;


② OTC registration is mandatory, manufacturers and importers are required to register, you can directly check on the FDA website whether the goods sold by the seller are non-prescription drugs;


Ø Cosmetic label:


① In addition to registration, it is also necessary to ensure that the label meets the requirements of the US FDA;


② The label of cosmetics needs to comply with the Good Packaging and Labeling Law (FPLA) and other applicable regulations;


③ The pigments contained in the cosmetics must be approved by the FDA, and the ingredients of the cosmetics must be safe. At the same time, the label must have the following elements: product description, net content, safety instructions, warning instructions, ingredients, manufacturers, distributors or The packager’s company name, address, country of origin, etc.;


2. Analysis of European beauty and makeup compliance certification

Ø Key points:


① The specifications for chemicals are clear;


② Products registered in CPNP (Cosmetic Products Notification Portal) once can be sold in 33 countries (European Economic Community);


Ø CPNP registration and Doc:


Cosmetics-related products must be registered in CPNP before they can be sold in Europe. Only one notification is required to enter the EU market and its 31 countries/regions through CPNP;


In addition, it should be noted that Doc (Declaration of Conformity, conforms to the standard description);


Ø Five key steps to comply with EU cosmetics regulations:


First. Appoint the person in charge. The main responsibilities of the person in charge include: being the seller’s priority point of contact with the local area; product compliance guarantor; product safety guarantor;


Second. Control the composition of the product. The ingredients that need to be controlled in cosmetic products are mainly divided into three categories: prohibited ingredients, restricted ingredients, and permitted ingredients; all ingredients do not have the same regulatory status, and the seller should ensure that the product fully complies with EU rules and regulations;


Third. Create a product information file (PIF). PIF must include product information, product safety report, GMP or ISO 22716, effect statement (need to comply with EU 655/2013), and non-animal experiments;


Fourth. Create a label that meets the requirements (need to support the local language of the destination country). The label contains the name and address of the person in charge (RsP), country of production, nominal content, shelf life or use period after opening, precautions and warning slogans, batch number, product function, and ingredient list;


Fifth. Register for CPNP. To register on the official website, you must prepare the product name and category, the name, address and contact information of the person in charge, the country of origin of the product, the first country where the product will be sold, and the product composition report (no toxic and hazardous substances are used), The basic formula of the product and the photo of the outer packaging with the compliance label;


3. Analysis of Beauty and Makeup Compliance Certification in Japan Station

Ø Key points


① The specifications are rigorous but clear;


② It is recommended to cooperate with formal and qualified agents;


Ø Qualification and sales license of cosmetics importer


① Japanese labels are required for cosmetics sold in Japan;


② Sales of cosmetics such as eye shadows, nail polishes, lotions, creams, etc. at the Japanese station require the qualification of a cosmetics importer and a sales license. This qualification can be applied for registration at the Ministry of Health and Welfare through a Japanese service provider, and the seller may be required to provide a license/registration number at any time To confirm that the cosmetics sold meet the requirements;


Ø "Drugs and Machinery Law":


Agents of imported cosmetics must meet the standards of the "Drugs and Machinery Law"; according to the different imported agents, five things that need to be completed include: sales, ingredient analysis, application for regulatory approval, labeling, etc., and product testing.


Finally, I will add an introduction to the Amazon Dangerous Goods Program (the English name is Hazmat):


Regardless of the destination country, if the product is to enter the Amazon FBA warehouse, then the FBA dangerous goods program is very important for the seller.


Sellers can check whether all products sold are classified as dangerous goods through the Amazon seller platform, and whether they meet the scope of other dangerous goods that can be sold on Amazon;


Hazmat plans to help sellers sell FBA products classified as dangerous goods through the Amazon operation center, and accept new participants in the waiting list order. Sellers can apply through the seller's platform or contact our account manager;


After creating a dangerous goods product, Amazon may require the seller to provide a safety data sheet (SDS) or ingredient information sheet so that the platform can safely store and deliver your product;


Finally, to summarize, the platform has zero tolerance for toxic and harmful ingredients. Testing and certification are both hands-on, and the details of the process must also be paid attention to.


Section 4: 2021 beauty products recommendation


In the product recommendation section, I will specifically introduce related popular products from two aspects: hair and facial skin care:


1. Hair

Hot-selling products related to hair can be divided into two types: one is care products, such as care products for beard and hair; the other is hair removal products.


Care products: Shampoo should solve the problem of logistics and transportation. The market demand for curling irons is also particularly large, and it is also a top-ranked product in the hot search, but before entering this category, it is still necessary to understand the peers and know yourself and the enemy.


Hair removal products: hair removal products, including men's haircuts and shaving products, women's hair removal wax, photon hair removal and other products. There are also some small and beautiful products that are also very popular with consumers, such as the female hair removal device, which is only the size of a lipstick and is convenient to carry in case of emergency.


2. Facial skin care

Facial skin care products are the most sold products in the entire health and beauty category. When choosing products, you should pay attention to the following keywords:


① Deep cleaning: Products with different cleaning functions such as bamboo charcoal mask and sponge mask are very popular. As well as facial cleaning equipment, these are all cleaning products.


② The second key word is moisturizing: Facial steamer is a moisturizing product. This type of product pays special attention to the ingredients, whether it is natural without adding any chemical substances, to ensure that there is no damage to the skin.


③ Travel products: Because foreign consumers often travel, small bottles that can be easily packed are also very popular.


④ Makeup: mainly involves eyes and nails. Eyes such as false eyelashes, false eyelashes do not require a certificate, but the glue used needs to be FDA certified because it is in contact with the skin. In addition, the certification requirements for cosmetic brush products are not very high, so the competition is very fierce.


Nail products such as nail lamps, polishers and other small products are very popular with girls, and can achieve diversification of appearance.


⑤ Oral care: This category is basically popular all year round, among which the demand for electric toothbrushes and water floss is great. Products that can whiten teeth are also popular in overseas markets.


There are also essential oils for facial skin care, which are also top-ranked products on the best-selling list. Another thing to note is freckle removal products. Although many foreigners have freckles, they take freckle as their beauty and do not need freckle removal.


Finally, it is recommended that all sellers can test the water from a small product. The same goes for hot-selling products, which can be involved in all categories such as skin care, nail salons, and artificial intelligence. Of course, powerful sellers can also make high-end products and combine existing products with them.