MONDAY, NOVEMBER 6, 2017, KUALA LUMPUR: Malaysia’s sole trade promotion agency Malaysia External Trade Development Corporation (MATRADE) calls upon Malaysian cosmetics industry to venture into China and profit from the booming demand there.
The message was shared at a seminar, “Connect with China’s Beauty Market”, held at Menara MATRADE today. The seminar was jointly organised with Informa Exhibitions and Malaysia Cosmetics and Toiletries Industry Group under the Federation of Malaysian Manufacturers (FMM).
Apart from encouraging Malaysian companies’ participation in China Beauty Expo (CBE) in Shanghai, China from 19-21 March 2018, the seminar aimed to provide insights on China’s cosmetics and beauty market. The topics highlighted during the seminar were on the Cosmetics Market and Trends in China, Cosmetics Registration Procedures in China as well as the Future of Halal Beauty Brands in Asia – all delivered by speakers from China’s industry experts.
In 2016, China ranked as 23rd biggest market for Malaysia’s exports cosmetics, with a value of RM7.6 million and accounting for 0.6 per cent share of Malaysia’s total exports of cosmetics. According to MATRADE’s Director of Lifestyle, Life Sciences and Medical Devices section Mr Abu Bakar Yusof, the exports of cosmetics and beauty products to China are still relatively small. “The event held today is timely in encouraging Malaysian companies to include China in their business expansion plan. The seminar today will help companies identify appropriate methods and platforms for them to make inroads into the China cosmetics and beauty market,” he said.
According to the data by Euromonitor reported by Hong Kong Trade Development Centre, the cosmetics sector on the Chinese mainland has been growing in tandem with the development of the Chinese economy in recent years. For example, the total retail sales of skincare products and make-up products in China have reached RMB169.1 billion (RM107.96 billion) and RMB28.3 billion (RM18.06 billion) respectively in 2016, achieving year-on-year growth of 5 per cent and 12 per cent respectively. This is indicative of the potential the market has to offer to the Malaysian industry players.
Malaysian cosmetics and beauty industry has the potential to increase Malaysia’s total trade performance. In 2016, Malaysia’s total exports of cosmetics amounted to RM1.25 billion, an increase of 1.4 per cent as compared to 2015. Major exports included cosmetics and make-up, valued at RM513 million, with a share of 40.9 per cent, followed by toiletries (RM374.6 million; 29.9% share) as well as preparations for hair (RM169.6 million; 13.5% share). In the first eight months of 2017, Malaysia’s total exports of cosmetics were valued at RM796.9 million.
Apart from participating in trade fairs such as CBE, Malaysian companies are also advised to build their exporting capacity by participating MATRADE’s exporters development programmes such as Go-Ex and eTRADE. The former facilitates Malaysian companies’ market immersion through exposures in trade activities whilst the latter aims to ease companies’ market access through digital platforms. For more details, go to www.matrade.gov.my.