Among Korean content, “K-beauty” is a global topic. Korean functional cosmetics are truly an attractive beauty item for many foreign countries` women, who only knew color cosmetics. Therefore, the number of Korean people entering the cosmetics business is steadily increasing. Most of them are aiming at the Chinese market. Why do sellers focus on China? What requirements are supposed to be ready to enter the Chinese cosmetic market?
With the explosion and sustained growth of the Chinese economy, China has become the most promising cosmetics market globally. According to the announcement by the Korea Institute for Industrial Outlook, the size of the Chinese cosmetics market stood at 134 billion yuan in 2012, surpassed 200 billion yuan for the first time in 2015, and surpassed 250 billion yuan in 2017 and grew to 251.4 billion yuan. If this trend continues, the market will be worth 423.9 billion yuan by the end of 2020.
Furthermore, China has a considerable advantage in the cosmetics industry: effective e-commerce system Alibaba. Chinese e-commerce company Alibaba has exceeded 300 million, of which 95 million are over 50 million. With the network, potential young consumers with a lot interest in beauty will access various cosmetics sold online easily. Then, before entering the China market, what requirements should you prepare?
To obtain ‘cosmetics permits’ in China
In principle, in order to export cosmetics to China, permission must be obtained from the National Drug Supervision and Management of China (NMPA).
China’s National Drug Supervision and Management divides cosmetics into non-special and special. In these few years, non-special cosmetics have been looked over much faster than before. Non-specialties contain skincare, makeup, and lip protection cream. For the examination, balance of basic products, samples for testing, manufacturing, domestic sales certificates, product’s package specifications and design (single box, container, manual) and the product’s middle civilization should be submitted.
Mutual registration is also required. Mutual registration is to register the name of the company on the business registration card, which can be obtained by registering it with the tax office. It can be registered in the form of Korean characters and can only be protected within the city where the business is run.
Trademark registration is also necessary. It is a registration for the exclusive use of a brand that has a distinct identity from others. Once the trademark is registered, the brand can be used exclusively throughout the country.
However, even if the permission is obtained by submitting the package design of the product, heavy civilization, this has nothing to do with the design registration and trademark registration in China. This is just a cosmetic license, but it is necessary to discontinue the sale of a similar product design or similar heavy civilization by a third party later when it becomes famous in the market.
[Reference]
Mi Hyun, P., 2016. Korean cosmetic brands which attracts Chinese women. [online]
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myasset, 2019. Changes in the consumption structure of Chinese cosmetics and the strength of native brands. [online]
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Sung Pill, H., 2020. Securing cosmetic permit and trademark rights for K-beauty`s entry into the Chinese market. [online]
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[access: 12 11 2020].