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What should you know about entering the cosmetics business in China?

On Behalf of | Jun 26, 2023 | Blog, Business Law

China’s beauty and personal care industry is worth $88 billion and may continue to increase. Nowadays, a lot of people prioritize self-care and beauty. They want to treat themselves and to feel good about themselves too. If you are considering entering the beauty industry in China, it may be a good time to do so, but you need to stay aware of different barriers that may create challenges for your business.

Regulatory challenges in selling beauty products

Foreign companies tend to struggle the most with China’s regulatory environment. There are a lot of regulations to navigate and barriers that may keep you out of the industry. First, if you plan to sell through traditional channels in China, you must have approval from the National Medical Products Administration. Even if you test your product overseas, it must still undergo testing in one of China’s NMPA testing facilities.

U.S. companies must follow product registration requirements, labeling guidelines and entry procedures to do business in China. You must register with an animal testing and hygiene permit and to do so, you must work with a PRC agency or be a PRC legal entity. If you want an animal testing waiver, you can get one by obtaining a Good Manufacturing Practices certificate.

Online retail may remove some barriers

Many Chinese consumers use the internet to review and purchase online products. If you advertise on Chinese channels, like Xiohongshu, you will likely reach the younger demographic interested in beauty sales. There are different regulations and barriers when selling online and your company may find it easier than having a local storefront.

While the beauty industry is thriving in China, you must follow all regulations to sell makeup in China.