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M&A Analysis and Research Report on Cosmetic Industry in China

Abstract:

1. The background analysis over status quo and M&A in cosmetic industry of China.

Cosmetic industry has been evolving into full-fledged market in which flourishing brands emerged. Among 300 brands, 20 of them have taken the leading position and joint venture took 80% of market share. The preponderant manufacturers in China are located along the Eastern Costal line and inland cities. It shares 90% as nation while sales value is above 60%. In respect of types, skin-care products is topping the list sharing 35%, hair-care products sharing 28%, make-up products sharing 29%, others being perfumes. According to insiders, total sales will reach to RMB 80 billion and level up at 12.9% annually.

Proportion of output of Chinese cosmetics

Following decade of years' development, China has emerged as the eighth cosmetic market in the world and second in Asia . The competition within the sector has been pushing the cosmetic industry into the combination of industrialization, market and internationalization. In 2005, the market scale has reached to RMB 46 billion. Retail sector has been RMB 33.05 billion above the limit growing 19.1%. In 2005, the cosmetic industry featured number of characters as followed:

1. The market is developing in a physically sound way.

2. The cosmetic product for kids and men grow steadfast. The cosmetic has not been the patent of women but children and men as livelihood of mass has been dramatically improved. The fast growth in that area reflected by special store in growth.

3. White collar is major customer for up-scale cosmetics. The expanding middle class has formed the loyal customer basis for this market, especially ladies. Their spending on cosmetic is outgrowing over other areas.

From 2004, in the light of lowered tariffs, many Europe brands are flowing into Chinese market. 16 out of 20 top brands have been presented on China 's market. They have got their market flourishing by M&A towards Chinese companies through advantage in capital and technology along with products. The monitoring data over major retail companies showed that the sales by big stores and foreign products especially color cosmetics. The top 10 grabbed majority market are foreign brands.

The list of famous brands of cosmetics in the world

Counties

Brand number

Brand Name

America

13

AVON 、 Else'eLan-der 、 Clinique 、 Oil&Ulan 、 Johnson&Johnson 、 RevLon 、 Maybelline 、 EilzabethArden 、 Pen-ten 、 Head&Shoulders 、 Colgare 、 Cret 、 UltraBrite

France

6

L'oreal 、 Chanel 、 Lancome 、 YSL 、 ChristianDior 、 Givenchy

Britain

3

Ponds 、 Vasekine 、 Chrins

Germany

3

Nivea 、 Wella 、 Fa

Japan

2

Shiaeibo 、 Kao

 

2. M&A trend of cosmetic industry in China

The personal spending on cosmetic is lower than the industrialized nation which is US$35-70. In that sense, the potential in China 's market is large. With economy expanding and mass livelihood improving, spending power in this product will grow.

The golden opportunity is introduced with consumption tax. The new tax policy laid out by the State Administration of Taxation painted a rosy picture for less competitive brands while upscale product was not mentioned in this policy. Especially in rural market, domestic ones stood a bargaining position with foreign ones based on advantage in price. Upon the analysis of us ., this has offered momentum and opportunity for capable domestic companies to develop. With the purpose of staking out more territory and lowering cost in marketing channel, foreign capital will gear in M&A to domestic ones and production line as well so as to push forward a broad portfolio of products.

In 20 years to come, the market capacity shot at RMB50 million at least which means more room is there to be scooped out and conducive to development among domestic brand. The outlook in this sector remains clouded though, one thing is certain that domestic companies need to sharpen their edge as facing eroded market eaten out by foreign counterparts.

Content: 

Chapter 1 Research Overview
Section 1   Background of the research
Section 2   Contents of the research
Section 3   Method over the research
Section 4   Team for the research
Section 5   Conclusion for research
Chapter 2 The Status Quo of Cosmetic Industry on World Stage Between 2007 and 2008
Section 1   The development pattern of cosmetic industry worldwide
Section 2   The market status quo of cosmetic industry worldwide
1. The analysis of market scale worldwide
2. The trend of market demand in cosmetic industry worldwide
Section 3 the competition in cosmetic industry worldwide
Section 4 the status quo of industrial development in American cosmetic industry
Section 5 the status quo of industrial development in Japanese catering industry
Chapter 3 The Status Quo of Cosmetic Industry in China
Section 1 the character traits of cosmetic industry in China
Section 2 the development trend in cosmetic industry between 2007 and 2010
1、Market scale in general
2. Market structure in cosmetic products
Section 3 the Spending analysis in cosmetic industry between 2007 and 2008
1. The Character of expenditure on cosmetics
2. The Trend of cosmetics in the near future
Section 4 the Prospect of future development between 2007 and 2010
Chapter 4 The market analysis of catering industry in detail
Section 1 the skin-care products 
1. Profile and character of market
2. Demand and supply between 2007 and 2008
3. Scale of demand and supply between 2007 and 2008
Section 2 Face cream and whitening products 
1. Profile and character of market
2. Demand and supply between 2007 and 2008
3. Scale of demand and supply between 2007 and 2008
Section 3 Sunscreen products 
1. Profile and character of market
2. Demand and supply between 2007 and 2008
3. Scale of demand and supply between 2007 and 2008
Section 4 Perfume
1. Profile and character of market
2. Demand and supply between 2007 and 2008
3. Scale of demand and supply between 2007 and 2008
Section 5 Hair dying product
1. Profile and character of market
2. Demand and supply between 2007 and 2008
3. Scale of demand and supply between 2007 and 2008
Section 6 Cosmetic for man
1. Profile and character of market
2. Demand and supply between 2007 and 2008
3. Scale of demand and supply between 2007 and 2008
Section 7 Cosmetic for kids
1. Profile and character of market
2. Demand and supply between 2007 and 2008
3. Scale of demand and supply between 2007 and 2008
Section 8 Natural cosmetic produsts
1. Profile and character of market
2. Demand and supply between 2007 and 2008
3. Scale of demand and supply between 2007 and 2008
Chapter 5 Investment policy environment in China¨s catering industry
Section 1 Rules and regulations upon cosmetic industry
Section 2 Marco-economic policy upon cosmetic industry
Chapter 6 The Impact factoring Cosmetic Industry
Section 1 Risk in catering industry
1. Risk on industrial code
Section 2   Development of current catering industry
Chapter 7 The Status of Regional Catering Industry and M&A Trend
Section 1 Northeast
1. Demand to regional cosmetic industry between 2007 and 2010
2. The development character and industrial pattern to regional cosmetic industry
3. Regional competition and major player in regional cosmetic industry
4. M&A trend and feasibility in regional cosmetic industry
Section 2 Northern region
1. Demand to regional cosmetic industry between 2007 and 2010
2. The development character and industrial pattern to regional cosmetic industry
3. Regional competition and major player in regional cosmetic industry
4. M&A trend and feasibility in regional cosmetic industry
Section 3 Central China
1. Demand to regional cosmetic industry between 2007 and 2010
2. The development character and industrial pattern to regional cosmetic industry
3. Regional competition and major player in regional cosmetic industry
4. M&A trend and feasibility in regional cosmetic industry
Section 4 Southern China
1. Demand to regional cosmetic industry between 2007 and 2010
2. The development character and industrial pattern to regional cosmetic industry
3. Regional competition and major player in regional cosmetic industry
4. M&A trend and feasibility in regional cosmetic industry
Section 5 Southwest
1. Demand to regional cosmetic industry between 2007 and 2010
2. Regional competitiveness 
3. M&A trend and feasibility in regional cosmetic industry
Section 6 Northwest
1. Demand to regional cosmetic industry between 2007 and 2010
2. The development character and industrial pattern to regional cosmetic industry
3. Regional competition and major player in regional cosmetic industry
4. M&A trend and feasibility in regional cosmetic industry
Section 7 Eastern region
1. Demand to regional cosmetic industry between 2007 and 2010
2. The development character and industrial pattern to regional cosmetic industry
3. Regional competition and major player in regional cosmetic industry
4. M&A trend and feasibility in regional cosmetic industry
Chapter 8  The Status Quo of M&A in Catering Industry of China.
Section 1  The background of M&A in China
Section 2  The status of M&A
Section 3  The M&A trend of cosmetic industry in China
Section 4  Case study in catering industry
Chapter 9  The Block to M&A of Cosmetic Industry in China
Section 1 Policy
Section 2 Product mix
Section 3 Demand and supply
Section 4 Way of reshuffle
Chapter 10  M&A Case Study of Cosmetic industry in Foreign Country
Section 1 Loreal purchasing Body Shop
1. Motives and value of M&A
2. Procedure of M&A
3. Solution and lesson of M&A
4. Strategic decision in M&A
Section 2 PG purchasing clairol
1. Motives and value of M&A
2. Procedure of M&A
3. Solution and lesson of M&A
4. Strategic decision in M&A
Section3 L¨Oreal purchasing SkinCeuticals
1. Motives and value of M&A
2. Procedure of M&A
3. Solution and lesson of M&A
4. Strategic decision in M&A
Section 4 L¨Oreal purchasing 
1. Motives and value of M&A
2. Procedure of M&A
3. Solution and lesson of M&A
4. Strategic decision in M&A
Section 5 PG purchasing Wella
1. Motives and value of M&A
2. Procedure of M&A
3. Solution and lesson of M&A
4. Strategic decision in M&A
Section 6 Loreal purchasing Sanoflore
1. Motives and value of M&A
2. Procedure of M&A
3. Solution and lesson of M&A
4. Strategic decision in M&A
Chapter 11  M&A Trend of Foreign Cosmetic Industry Upon China¨s Counterparts  
Section 1  The development of foreign cosmetic industry in China
1. Investment
2. Targeted area for investment
3. Market performance
4. Investment products mix
5. Investment trend
Section 2 L¨Oreal
1. Investment in China
2.  Core competition
3. M&A trend and feasibility
Section 3 Procter & Gamble
1. Investment in China
2. Core competition
3. M&A trend and feasibility
Section 4 Amway
1. Investment in China
2. Core competition
3. M&A trend and feasibility
Section 5 AVON
1. Investment in China
2. Core competition
3. M&A trend and feasibility
Section 6 Shiseido
1. Investment in China
2. Core competition
3. M&A trend and feasibility
Section 7 Kao Group 
1. Investment in China
2. Core competition
3. M&A trend and feasibility
Section 8 Unilever
1. Investment in China
2. Core competition
3. M&A trend and feasibility
Chapter 12  Foreign Company Waiting for Coming in
Section 1 Palladio Beauty Group
1. Business performance
2. Core competition
3. Background and motive for foreign company entering into China
4. Trend and possibility of foreign company investing in China
Section 2 Doctor's Approach Skin and Hair Care
1. Business performance
2. Core competition
3. Background and motive for foreign company entering into China
4. Trend and possibility of foreign company investing in China
Section 3 Pantina Cosmetics Inc.
1. Business performance
2. Core competition
3. Background and motive for foreign company entering into China
4. Trend and possibility of foreign company investing in China
Section 4 Donielle's International LLC
1. Business performance
2. Core competition
3. Background and motive for foreign company entering into China
4. Trend and possibility of foreign company investing in China
Chapter 13  Case Study of M&A in Domestic Cosmetic Industry
Section 1 China-Liby purchasing COGI
1. Motive and value of M&A
2. Procedure of M&A
3. Solution and lesson of M&A
4. Strategic decision of M&A
Section 2 L¨Oreal purchasing Yue-Sai
1. Motive and value of M&A
2. Procedure of M&A
3. Solution and lesson of M&A
4. Strategic decision of M&A
Section 3 L¨Oreal purchasing Mininurse
1. Motive and value of M&A
2. Procedure of M&A
3. Solution and lesson of M&A
4. Strategic decision of M&A
Section 4 SOFTTO purchasing Nanjing Golden Ballet
1. Motive and value of M&A
2. Procedure of M&A
3. Solution and lesson of M&A
4. Strategic decision of M&A
Section 5 Jahwa purchasing Meijialing
1. Motive and value of M&A
2. Procedure of M&A
3. Solution and lesson of M&A
4. Strategic decision of M&A
Chapter 14 Major Player of M&A in China¨s Comsmetic Industry 
Section 1 SOFTTO (Guangzhou) Co., Ltd
1. Products mix
2. Brand character
4. Marketing network
4. Strategic development
5. M&A trend and feasibility
Section 2 Jahwa
1. Products mix
2. Brand character
3. Marketing network
4. Strategic development
5. M&A trend and feasibility
Section 3 Guangdong Panda Chemical Product Co., Ltd
1. Products mix
2. Brand character
3. Marketing network
4. Strategic development
5. M&A trend and feasibility
Section 4  Tianjin Yumeijing Group Co., Ltd
1. Products mix
2. Brand character
3. Marketing network
4. Strategic development
5. M&A trend and feasibility
Section 5 Zhuhai Sunrana Cosmetic Co., Ltd
1. Products mix
2. Brand character
3. Marketing network
4. Strategic development
5. M&A trend and feasibility
Section 6 Ganon 
1. Products mix
2. Brand character
3. Marketing network
4. Strategic development
5. M&A trend and feasibility
Section 7 Jiangsu Longliqi Group Co.,Ltd.
1. Products mix
2. Brand character
3. Marketing network
4. Strategic development
5. M&A trend and feasibility
Chapter 15  Industry Chain & M&A in China¨s Cosmetic Market
Section 1 Cosmetic industrial chain
Section 2 M&A of cosmetic industry within industrial chain
Chapter 16 Possibility of scale M&A in China¨s Cosmetic Industry
Section 1 Possible M&A in scale cosmetic company
1. SOFTTO (Guangzhou) Co., Ltd
1.1 Products mix
1.2 Brand character
1.3 Marketing network
1.4 Strategic development
1.5 Feasibility of M&A
1.6 Value of M&A
2 Shanghai Jahwa United Co., Ltd.
2.1 Products mix
2.2 Brand character
2.3 Marketing network
2.4 Strategic development
2.5 Feasibility of M&A
2.6 Value of M&A
3. Guangdong Panda Chemical Product Co., Ltd
3.1 Products mix
3.2 Brand character
3.3 Marketing network
3.4 Strategic development
3.5 Feasibility of M&A
3.6 Value of M&A
4. Tianjin Yumeijing Group Co., Ltd
4.1 Products mix	
4.2 Brand character
4.3 Marketing network
4.4 Strategic development
4.5 Feasibility of M&A
4.6 Value of M&A
5. Zhuhai Sunrana Cosmetic Co., Ltd
5.1 Products mix	
5.2 Brand character
5.3 Marketing network
5.4 Strategic development
5.5 Feasibility of M&A
5.6 Value of M&A
6. Ganon
6.1 Products mix
6.2 Brand character
6.3 Marketing network
6.4 Strategic development
6.5 Feasibility of M&A
6.6 Value of M&A
7. Jiangsu Longliqi Group Co.,Ltd.
7.1 Products mix
7.2 Brand character
7.3 Marketing network
7.4 Strategic development
7.5 Feasibility of M&A
7.6 Value of M&A
Section 2 M&A in Small and medium cosmetic companies
1. Guangzhou Haodi Cosmetic Co., Ltd 
1.1 Products mix
1.2 Brand character
1.3 Marketing network
1.4 Strategic development
1.5 Feasibility of M&A
1.6 Value of M&A
2. Chaoyang Chwfin Cosmetic Co.,Ltd
2.1 Products mix	
2.2 Brand character
2.3 Marketing network
2.4 Strategic development
2.5 Feasibility of M&A
2.6 Value of M&A
3. Zhejiang Enchant Cosmetic Co., Ltd 
3.1 Products mix
3.2 Brand character
3.3 Marketing network
3.4 Strategic development
3.5 Feasibility of M&A
3.6 Value of M&A
4. Shantou Haida Cosmetic Co., Ltd 
4.1 Products mix
4.2 Brand character
4.3 Marketing network
4.4 Strategic development
4.5 Feasibility of M&A
4.6 Value of M&A
5. Liang Fei Group
1.1Products mix
5.2 Brand character
5.3 Marketing network
5.4 Strategic development
5.5 Feasibility of M&A
5.6 Value of M&A
Chapter 17  Risks of M&A in China¨s Cosmetic Industry
Section 1 Asset reshuffle risks
Section 2 Brand image rebuilding  
Section 3 Marketing integration 
Section 4 entrepreneurial culture
Chapter 18 Recommendation of M&A in China¨s Cosmetic Industry 

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