Cosmetics regulations in China: What foreign brands need to know

The Chinese cosmetics market has become a major global player, attracting many foreign brands. However, setting up a successful business in China requires a thorough understanding of the strict regulations that govern the sector. This article examines the key regulations concerning cosmetics ingredients in China, their importation, marketing and commercialisation, with a particular focus on the implications for foreign brands.

The new CSAR regulations

On 1 January 2021, China introduced a new global regulatory framework for cosmetics: the Cosmetic Supervision and Administration Regulation (CSAR). This regulation replaces the old rules dating back to 1989 and aims to improve the safety, quality and efficacy of cosmetic products on the Chinese market. The CSAR introduces an obligation to assess the safety of each product and strengthens control throughout the product life cycle. The regulation also introduces new requirements for efficacy claims and new definitions and classifications for cosmetic products and their ingredients.

Although the CSAR has officially been in force since 2021, its full implementation is being phased in gradually until 2024, with the introduction of additional implementing regulations. The list of prohibited ingredients drawn up by the National Medical Products Administration (NMPA), for example, has been regularly amended and extended since 21 March 2024 to include 5 new ingredients. At the same time, the testing protocols have been modified and will come into force in December 2024. This change introduces 11 new test methods and revises 3 already in use.

From 1 May 2024, all cosmetic products marketed in China will have to undergo a full safety assessment, replacing the simplified version currently accepted.

The inventory of cosmetic ingredients (IECIC 2021) has been updated. It lists the 8783 authorised ingredients. Safety data for all new ingredients must be submitted to the authorities. The aim of this regulatory update is to better control the quality and safety of cosmetics imported or produced in China, in a fast-growing market.

Importation of Cosmetic Products

Product registration :

Before importing cosmetic products into China, foreign brands must register their products with the National Medical Products Administration (NMPA). This process can be complex and time-consuming, requiring the submission of detailed technical files, safety tests and compliance with local standards. For example, so-called ‘special cosmetics’ (such as sun protection products, hair dyes and hair loss products) must be registered and tested, a process that can take several months.

Animal Testing Requirements :

Historically, China required animal testing for all imported cosmetics, which posed an ethical problem for many international brands. Since May 2021, so-called “ordinary” cosmetics (such as skin care products, hygiene products and make-up) can be exempted from this requirement if certain conditions are met, such as Good Manufacturing Practice (GMP) certification by the country of origin.

Marketing and Sales

Advertising regulations :

All products, whether sold on the domestic market (offline or online) or on cross-border e-commerce (CBEC), must comply with Chinese advertising laws. Claims requiring administrative approval from the Chinese government are not permitted without the corresponding certificate. For example, cosmetics advertised as being for sensitive skin or simply improving skin elasticity must undergo efficacy tests on humans or consumer tests to assess the efficacy claim.

 Sales channels :

• Cross Border E-Commerce: Supervised by the General Administration of Customs of China (GACC), trademarks will be reported to the local authorities by anti-counterfeiting professionals against the illegal use of arguments.
• Domestic market: Overseen by the State Administration for Market Regulation, advertising and designations are strictly supervised.

Ingredients and Formulation

List of Prohibited and Restricted Ingredients :

The NMPA maintains a list of prohibited and restricted ingredients in cosmetic products. Brands must ensure that their formulations comply with this list. For example, certain preservatives and colourings commonly used in other markets may be banned in China.

Certification of Ingredients :

Brands must also provide detailed information on the ingredients used in their products, including certificates of analysis and evidence of safety. New substances used in cosmetic products must be approved by the NMPA before being placed on the market.

Labelling and Packaging

Labelling requirements :

Cosmetic products sold in China must comply with strict labelling requirements. This includes the translation into Chinese of all relevant information, such as the name of the product, the list of ingredients, instructions for use and precautions. In addition, the label must include the name and address of the Chinese importer, and of the responsible body in the event of an incident.

Mandatory information :

The label must also indicate the date of manufacture and the product’s shelf life. Cosmetics intended for children or people with sensitive skin must include specific warnings. Failure to comply with labelling requirements may result in products being withdrawn from the market.

Cosmetics advertising

Cosmetics advertising in China is subject to strict rules to protect consumers from misleading information and unsubstantiated claims.

Prohibitions on advertising :

• Falsify or exaggerate the name, manufacturing method, ingredients, effectiveness or performance of cosmetic products.
• Using another person’s name to guarantee or mislead others as to effectiveness.
• Communicate medical effects or use medical terminology (e.g. cosmeceuticals, prescriptions, antibacterials, sterilisation, etc.).
• Denigrate the similar products or services of other producers or operators.
• Using or concealing the name or image of a State body or its staff.
• Indicate or imply that the efficacy, quality or safety of cosmetic products have been recognised by the State authorities through registration, filing, certification and other activities of State bodies.

Authorised claims :

• Advertisements must be consistent with the content of the product registration or filing documents. For example, a product registered in China as having a whitening function cannot use the argument of sun protection.
• The following effects are authorised in China: hair dyeing, perming, freckle whitening, sunscreen, hair loss prevention, acne elimination, moisturising, anti-wrinkle, soothing, etc. Cosmetics claiming to have additional effects or to be suitable for specific groups must provide a special registration certificate.
• The data and quotations used in advertising must be true and accurate, and the source must be indicated.

Restrictions on Terms and Claims :

• It is forbidden to use terms such as “national level”, “superlative”, “best”, “first”, “premium”, “top”, “latest innovation”, “pure natural products”, “organic products”, “without side effects”, “food quality”, etc.
• The arguments “gentle and non-irritating”, “sensitive skin”, “does not sting the eyes” require an assessment of efficacy, including human efficacy tests, consumer tests or laboratory tests.

Conclusion

The cosmetics market in China represents a considerable opportunity for foreign brands, but it is governed by strict regulations that can be complex. Understanding import, marketing, formulation and labelling requirements is essential for a successful and sustainable business. Despite the challenges, brands that are able to comply with regulations and adapt their marketing strategies to local preferences can thrive in this dynamic and growing market. With growing demand for beauty products and an increasingly sophisticated consumer population, China offers exciting prospects for the global cosmetics industry.

If you are interested in the cosmetics market in China and would like to find out more about consumer habits, Chinese regulations governing the import and sale of skincare products and cosmetics, or the role and importance of the responsible body, contact VVR International. Our experts in the field will be happy to answer your questions.

Commercial success in China: Know Your Consumers

The Chinese market may seem vast, but it is far from homogeneous. So while there are real opportunities for many business sectors, it is essential to study the structure of this market and its dynamics in advance. Indeed, if you want to do business in China for the long term, it’s essential to understand the mindset of the Chinese consumer. Influenced by a unique combination of traditional culture and modernity, these consumers have specific expectations that companies must recognize and satisfy.

Understanding the Chinese consumer

Understanding the Chinese consumer is the first step for any company looking to expand into China. A brief overview of consumer habits and interests.

Cultural values and their influence on buying habits

China, with its thousands of years of history, has a deeply rooted culture that can influence buying behavior. Certain values, such as respect for family and the value of saving, guide consumer choices and set the pace for certain purchases. For example, on special occasions such as Chinese New Year, it’s common to give expensive gifts to show respect and affection.

The Importance of Brand and Quality

Chinese consumers place a high value on brand reputation and product quality. A well-known brand is often associated with reliability and superior quality. For this reason, many foreign companies with a good international reputation have a clear advantage in the Chinese market.

The Role of Social Media and Influencers

With the rise of technology and the mass adoption of smartphones, social media plays an important role in the lives of Chinese consumers. Platforms such as TikTok have become essential sources of information for consumers. Influencers have a significant impact on purchasing decisions as they are perceived as reliable and authentic sources of information. They drive this digital commerce by offering live streaming on the main Chinese platforms, where they present products and generate a sometimes colossal volume of sales The rise of live streaming in China, a hot new sales channel – VVR International, strategic development, production, sourcing, distribution…

Meeting consumer expectations

Responding effectively to the needs of Chinese consumers requires an adapted and innovative approach, supported by a tailored marketing strategy and a multi-channel distribution network – Supply Chain & Distribution – VVR International, strategic development, production, sourcing, distribution… Here’s how companies can adapt to these expectations to ensure their success.

The Importance of Localizing Products and Services

China is a huge country with cultural and regional diversity. What works in one region may not be as effective in another. Therefore, localization of products and services is critical. This means not only language translation, but also adapting products, packaging and communication to local tastes, preferences and needs.

Customer service: a key element in gaining trust

Chinese consumers place a high value on customer service. Fast, efficient and courteous service can have a significant impact on brand perception. What’s more, word of mouth is powerful in China. A single bad customer experience can quickly spread across social networks and damage a company’s reputation.

Current and future trends to watch

The Chinese market is evolving rapidly. Companies need to stay on top of the latest trends and adapt accordingly. For example, the rise of e-commerce and certain platforms unknown in Europe, the growing importance of sustainability, and the appeal of local products are all trends that companies need to consider in their strategy.

Tips for foreign companies

Entering the Chinese market can seem daunting, but with the right strategies and a thorough understanding of the terrain, foreign companies can thrive. Discover some essential tips for successfully navigating this dynamic market.

Market Research and Local Partnerships

Before entering the Chinese market, it’s essential to conduct in-depth market research to understand local nuances. Working with local partners can also be advantageous, as they have intimate knowledge of the market and can help navigate the complex Chinese business landscape.

Adapt Marketing and Communications Strategies

Marketing and communications in China are very different from those in the West. Companies must adapt their messages to resonate with Chinese consumers. This may include using local celebrities for advertising campaigns or participating in local festivals and events to increase brand exposure. Relying on a local employee to represent the brand or product in China is an advantage when launching in China. Thanks to Portage Salarial, it is possible to hire a Chinese sales representative without having to set up a legal entity in China. In fact, VVR International provides a legal home for your employee. As part of our “PEO services, we manage your employee’s administrative affairs and act as an intermediary for the payment of salaries and other fees;

Understanding Local Regulations and Standards

China has its own regulations and standards for trade, quality and safety. Foreign companies need to ensure that they comply with these regulations and keep abreast of developments to avoid legal problems. This may involve working with local experts or consultants to ensure compliance.

The bottom line: Navigating the Chinese market with confidence

China, with its ever-evolving market and demanding consumers, offers immense opportunities for companies that are able to adapt and innovate. By focusing on localization, building strategic partnerships, and staying on top of the latest trends, companies can thrive in the Chinese market.

With over 24 years of experience, VVR International has assisted numerous European companies in their industrial and commercial development in China. Whether you’re looking to establish local brands, sell through distribution networks, recruit the best local talent on your behalf, or use the PEO services, VVR International’s teams are ready to assist you in your development project.

Strategies for standing out in the ultra-competitive Chinese market

The Chinese market is attractive, but with aggressive local competition and consumers with ever-higher expectations, how can a foreign company really stand out and win the trust of Chinese consumers? In this article, we’ll explore some proven tips for succeeding in this dynamic and sometimes unforgiving market, even in the face of fierce competition. Whether you’re new to the market or looking to consolidate your presence, these strategies could be the key to your success in China.

Understand and adapt to the Chinese culture

Entering the Chinese market without a thorough understanding of its culture and nuances is a common and costly mistake. Here are some key elements to keep in mind:

Importance of localization:

Chinese consumers appreciate brands that speak to them in their own language and respect their customs. This is more than just translation. Localization means adapting your messaging, design, and even aspects of your product or service to resonate with local audiences. Implementing a targeted, specific marketing strategy is essential to establishing yourself in the marketplace.

Cultural nuances:

From the color of packaging to local festivals, being aware of cultural nuances can help your company avoid major faux pas. For example, red is a lucky color in China, while white is often associated with mourning.

Work with local partners: Working with local partners, distributors and/or retailers can not only ease market entry, but also enhance your brand’s credibility. They can help you navigate regulatory complexities and better understand consumer preferences.

Maximize your digital presence

China is one of the most connected countries in the world, with a highly active population on digital platforms. Here’s how to optimize your online presence to reach and engage this audience:

The Chinese Social Media World:

In China, the main social networks are WeChat, Weibo, and Douyin. Each of these platforms has unique features and audiences that require tailored content strategies. For example, WeChat is ideal for CRM, while Douyin (the equivalent of TikTok) is essential for viral marketing. L’essor du live streaming en Chine, nouveau canal de vente en vogue – VVR International, développement stratégique, production, sourcing, distribution…

E-commerce and distribution platforms:

With platforms such as Tmall, JD.com and Pinduoduo, online commerce is a booming industry in China. Pinduoduo : l’avenir du e-commerce chinois – VVR International, développement stratégique, production, sourcing, distribution…. It’s essential to provide a smooth user experience and understand the nuances of Chinese e-commerce, such as specific “shopping days” (e.g. Singles’ Day).

Tailor content to the Chinese audience:

Create content that speaks directly to your Chinese consumers. This may mean working with local KOLs, producing customized videos, or even launching advertising campaigns specific to certain regions or cities.

Build strategic partnerships and collaborations

Collaboration is often the key to success, especially in a market as diverse and vast as China. Here’s how you can use collaborations to strengthen your position:

Work with recognized local brands:

Partnering with established Chinese brands can open doors for you and make it easier for the local public to accept your product or service. These collaborations can take the form of co-branding, cross-promotion, or joint marketing campaigns.

Attend trade shows and local events:

These events are an opportunity to meet potential partners, understand market trends, and showcase your products directly to Chinese consumers.

The Art of Succeeding in China: Adapt and Persevere

The Chinese market can be complex to navigate, but with a thorough understanding of the culture, the implementation of a multi-channel distribution strategy, and strategic alliances, your company can launch and sustain its business in China.