China becomes world’s second-largest cosmetics market

China has become the world’s second-largest cosmetics consumer market with more than 5,400 licensed cosmetics producers and 1.6 million registered products in the country.

The cosmetics industry is one of the fastest-growing businesses in China. Due to consumers’ increasing disposable income and social media marketing, such as livestreaming and short videos, the demand for high-quality cosmetics products is soaring.

However, the growth of the online cosmetics industry has resulted in more fraud and counterfeit goods. As such, authorities have introduced regulations to monitor the growing consumer market. Cosmetics businesses need to register on e-commerce platforms with their official names, provide records of purchases and report any illegal activities online to the supervisory authority.

China’s cosmetics industry is not the only market being targetted. Regulations are being scaled up across China’s online industries. Previously unregulated, livestreaming has faced growing scrutiny as revelations surfaced that numbers are often inflated and with several big names, including Simba, being involved in counterfeit scandals. In November, new regulations were also introduced to crack down on China’s tech giants by reducing the monopolistic powers of e-commerce and payment platforms.

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