A Probiotic mouthwash line of an oral care brand has achieved sales of over 100 million RMB in 80 days.
Products such as cleaning, makeup removal, and oral care in the cosmetics field with fewer functions and normal attributes may not raise you much attention when you are developing products. However, such categories of products are about to become a huge opportunity territory and may generate a new batch of big brands in China.
Why are they?
Efficacy Testing Exemption
First of all, according to the Cosmetics supervision and administration regulation (CSAR) make it very clear that in the future, most of the cosmetics claims and functions are necessary to submit efficacy testing before going to market. However, the “Evaluation Standards for Cosmetic Efficacy Claims” indicate that cosmetics claims which can be directly identified by the senses such as vision and smell or through the simple physical covering, adhesion, friction, etc., and the effect occurs only as physical effects will be exempted from publishing a summary of the product efficacy claims.
For example, products such as cleaning, makeup removal, fragrance, etc. all will be qualified for exemption. In addition, it is worth mentioning cosmetics that only have moisturizing and hair care functions can choose to make efficacy claims based on literature research and consumer research data analysis.
CosmeticsBridge found the data from the NMPA system that the filing of general cosmetics has ushered in an outbreak, and the number of filings has suddenly increased to 375. Among them, Wash and care products account for about 20%, including shower gel, shampoo, shower scrub, and shower oil. Other Category products which have effects that include physical covering, adhesion, and friction take 38% of the total registration products.
In total, the products that can be exempted from efficacy claim testing account for 58%. With “efficacy exemptions”, brands can save hundreds of thousands of cost of efficacy evaluation, while maintaining a faster update iteration and market entry speed.
One of our members share with us: “Since last year, the cosmetics factory’s order growth for wash and cleaning products has been the highest among all categories. Due to the exemption of efficacy claims, low product development thresholds, and the outbreak of consumer demand, we believe that bath products will become an opportunity category for new brands. Meanwhile, wash and cleaning products are also the key development categories of the factory.”
Market demand Keep Growing
From January to December 2020, shampoo and hair care products on the three major e-commerce platforms of Taobao, Tmall, and JD.com have increased by more than 40% year-on-year in 2019 which is the only category with positive sales growth in skincare, makeup, and toiletries.
Generally speaking, the customer unit price and product profit of washing and cleaning care products are not as good as skincare products, but as consumer demand, they have always firmly occupied the market share in large pieces.
A consumer survey data shows that the traditionally high price, big brand, High-end elements can no longer meet the needs of consumers. The functionalization, segmentation, and sceneization of washing and cleaning products may become a new direction for category innovation. At the same time, product appearance and fragrance are becoming more and more important to consumers’ purchasing decisions.
In addition, with the diversification and individualization of consumer needs, some products targeting new consumer groups, new sales scenarios, and new use scenarios have successfully found an incremental market, contributing to the emergence of sub-categories such as mouthwashes, color lock & protection products.
Take mouthwash as an example: Data shows that a probiotic mouthwash brand called SanBan has achieved sales of over 100 million RMB in 80 days.
To the fact, the proportion of portable oral care product consumption has more than doubled over the same period of last year. Portable mouthwashes are growing rapidly, with the consumption rate increasing at 200%.
In addition, the current oral care products such as mouthwash and toothpaste do not have relevant policies or standards to regulate the industry. So it will be the best time for brands entering China in such period. But according to cosmetics bridge insights: the China oral care association is currently setting up a set of industry standards for mouthwash products administration, which are expected to be released within this year.
In conclusion, in the context of continuous expansion of market demand and efficacy exemptions, categories such as washing, cleaning, and mouthwash are undoubtedly more advantageous in China markets and it is possible to consider putting them back to your product’s development plan.
