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A research staffer from a biological pharmacy and technology corporation based in Tianjin Binhai New Area does experiment on skin care products. [Photo/People.com.cn] |
With the continuous development of modern biological pharmacy and biological technology, many global leading skin care brands gradually changed their research and development focus area from chemical engineering to biological technology. Therefore, new patterns appear in the skin care market.
The new market has been launched in the country and has huge business opportunities. The sales volume of cosmetics industry will experience continuous growth in the following years, according to statistics. The sales volume will reach around 314.2 billion yuan ($49.2 billion) in 2018. The annual growth rate will keep at 9.8 percent.
The Binhai New Area in Tianjin has profound foundation in biological pharmacy and technology. Influenced by the trend, a wave of technological medium and small sized businesses has started to find new development opportunities and use left resources to build skin care brands gradually.
In the Binhai New Area, not only large-scale biological enterprises with strong technological background enter the skin care industry, some start-ups and small sized businesses also have a try in the new market. All of these companies put emphasis on the cell industry.
The best-selling product of Qiangweite, a leading company in the industry, is a essence promoting the growth of epidermis cells. The product has achieved an annual sales volume of 20,000 after launching for two years.
Fuying Biological Company develops a product focusing on epidermis cell growth factor that integrating serum protein from human blood. Such technique has received patents. Meitianni Company’s products also focus on skin care techniques cultivated by cells.
Zhang Chen, general manger of Meitianni said that the technique is a very effective way to protect skin. Many oversea skin care corporations also use this technique. Zhang hopes the technique can be broadly used in the country and bring advantages to the clients.
Zheng Chunyang, president of Qiangweite said that the biological pharmacy and technology industry has cultivated a batch of technicians in rapid development for nearly two decades. As people have a better understanding of skin and the mechanism, the industrial standards of the overall skin care industry will experience huge change. The change based on technology falls in the weakest part of the traditional skin care manufacturers. Therefore, the situation brings opportunities to corporations with strong biological technology such as Qiangweite.
Yu Zailin, president of the Fuyi Biological Company, a professional firm dedicated in the industry for years suggested that corporations without original technology should be cautious to enter the market. Lin thought that the biological technology corporations do not embrace brand values such as L’Oreal and Biotherm. Therefore, the corporations should win over the market through research capability and original technology.
More and more corporations in biological pharmacy and technology enter the market with resources and technology in the country. Among the total of 5,000 cosmetic corporations, around 90 percent are medium and small sized corporations with market share of less than 20 percent. The majority of the market is occupied by foreign capital corporations.
Facing the cruel reality, Yu said that Fuying Company planned to achieve sales capital from the highly profitable skin care industry and make continuous preparation for corporation’s research and development in medication in the future. But Fuying Company found very soon that sales is completely a different industry. The research and development team of the company is not equipped with sales capability. Therefore, the company is finding cooperative opportunities with famous skin care brands in the country. In addition, the skin care industry is facing problems such as intellectual property protection. Therefore, the company stays cautious when exploring the market.
Qiangweite Corporation also encountered difficulties in sales and promotions. The corporation has established stores on electronic commerce websites such as Taobao and has been actively finding sales representatives in different regions. Zheng thought that Qiangweite is a corporation dedicated in research and development but not sales. The corporation is neither interested in building sales channels. The corporation is communicating with potential investors and partners and plans to separate the skin care business from the corporation and build a new corporation to boost the brand with teams with strong market channels and marketing capability.
Beijing Renrentongtai Biological Technology Company serves as a pioneer in the industry. Jiang Buke, president of the corporation said that it is now cooperating with famous Tianjin-based skin care brand Yumeijing and provides technique and materials to the brand. Through the cooperation, Renrentongtai’s advantages in biological fermentation and Chinese medication integrate with Yumeijing’s channel resources and social recognition.
