China's 1st platform for functional cosmetics launched

Qingdao Baheal Medical Inc has officially announced the launch of China's first commercialization platform for functional cosmetics, to facilitate such brands to enter the market through medical standards and consumer experience improvement as well as through precision marketing programs.

China's functional cosmetics account for no more than 20 percent of the overall cosmetics market, while in Japan and Europe, the figure has exceeded 60 percent, indicating a great growth space for the functional cosmetics market, according to the company.

Functional cosmetics are more developed in those mature markets because they have complete and professional drugstore channels to offer customers more professional services, while in China sales of functional cosmetics mainly rely on online channels.

Li Zhenyu, general manager of the company's new retail division, said 2021 will be the first year marking the quick and healthy development of functional cosmetics in China, because with enhanced regulations on publicity regarding the effects of cosmetics, brands need to provide trial data to support their claims, which will stimulate the growth of brands with truly effective products and reshape the whole industry.

Besides, Generation Z, or those born in the mid-to-late 1990s to the early 2000s, care not only about the brand reputation, but more about the function, ingredients, technology and safety of the products they consume, he said, adding Generation Z will be the core consumers to propel the development of functional cosmetics in China.

The company's functional cosmetics commercialization platform has established cooperation with more than 10,000 professional cosmetics chain stores, and with help from its over 10 years of expertise in pharmacies, the company expects to launch 500 pharmacies selling both drugs and functional cosmetics within the year.

Liao Wanqing, academician of the Chinese Academy of Engineering, said it is important to roll out industry standards to regulate the development of the industry, especially as the market potential of functional cosmetics is huge with consumers' increasing awareness of professional skin care.