Cosmetics and Toiletries
Hong Kong
Overview
| x | 2004 | 2005 | 2006 (estimated) |
| Total Market Size | 595 | 631 | 681 |
| Total Local Production | 53 | 57 | 58 |
| Total Exports | 552 | 607 | 725 |
| Total Imports | 1094 | 1181 | 1348 |
| Imports from the U.S. | 137 | 147 |
162 |
All figures are in US$ million.
Imported cosmetics and toiletries meet 95% of local demand, as there is very little domestic production. Hong Kong’s cosmetics and toiletries imports totaled USD1,09 billion in 2005. China was the largest supplier with 17% market share, followed by the U.S.(12.5%,) Japan (11.7%,) and France (11%.) Imports from the U.S. totaled USD147 million in 2005. U.S. cosmetics and toiletries’ suppliers are known for innovative and technologically-advanced product development, and for producing safe, high-quality products at competitive prices.
Hong Kong consumers prefer imported cosmetics and U.S. exporters face keen competition from Japan and Europe. To maintain their competitiveness, many suppliers have begun focusing their marketing efforts on products that Asian consumers favor, especially skin-whitening and anti-aging facial treatments used in professional skin care salons and through dermatologist clinics.
To assist U.S. exporters, the U.S. cosmetics industry organizes a pavilion at the annual Cosmoprof Asia Show. U.S. companies have had tremendous success at this show. Hong Kong is an important entrepot for regional trading of cosmetic products, especially for re-exports to Vietnam and China. Many U.S. companies sell their cosmetics and skincare products to China through their Hong Kong distributors.
Several international cosmetics brands also chose Hong Kong as the first overseas market or for launching new products in Asia citing its open regulatory environment as the attraction. There are no tariffs on imported cosmetics and toiletries. Hong Kong accepts U.S. product labeling and there are no local mandatory labeling or registration requirements on cosmetics.
Best Products/Services
Products with the best sales prospects in Hong Kong are:
Opportunities
Tourism, the territory’s second largest earner of foreign exchange, also provides a substantial market for cosmetics and toiletries. Tourists to Hong Kong, especially from China, are spending more on cosmetics and perfumes. 12 million Mainland Chinese visited Hong Kong in 2005 and the number is expected to grow to 20 million in 2006. For 80% of the Mainland Chinese tourists that visit Hong Kong, cosmetic and skincare products are among their top 3 purchases. Hong Kong offers a wider choice of brands and retail prices are 30% lower than those in China. Also, the Hong Kong Tourism Board’s Quality Tourism Services (QTS) Scheme ensures that its members (of which there are 19 cosmetics retailers) provide genuine products. QTS-accredited shops must pass stringent assessments each year to show that they provide genuine products with clearly displayed prices, product information and superb customer service before they are allowed to display the QTS sign prominently in their shops. The renowned international American, French, and Japanese brands of cosmetics and skincare products are most popular with the Mainland Chinese tourists. As such, for many international cosmetics brands, Hong Kong increasingly represents a launch pad into the Chinese market; Hong Kong creates the trends and acts as a showcase for the Chinese consumers.
To assist U.S. exporters, the U.S. cosmetics industry organizes a pavilion at the annual Cosmoprof Asia Show in Hong Kong. U.S. companies have had tremendous success at this show.
Resources
Major trade show:
Cosmoprof Asia 2007; total exhibitors: 1,143 in 2006 (highest in 11 years), and total number of visitors in 2006: more than 40,000.
This is Asia's largest, most comprehensive and international beauty industry trade show for the past 11 years. It is the Asia version of the world's best beauty industry trade show, Cosmoprof, held annually in Bologna, Italy for the past 38 years. The trade show features equipment, products (skin care, cosmetics, personal care products, nail products, perfumes & toiletries, cosmetic raw materials) packaging, and training services in the beauty industry: hairdressing, spas, beauty and skincare salons. Website for the show: http://www.cosmoprof-asia.com. Under the U.S. Department of Commerce’s “Asia Now” program, U.S. exhibitors at this show receive free market research and can enjoy the buyers’ matching and counseling services of 15 U.S. Commercial Service offices in the Asia Pacific region. At Cosmoprof Asia 2006, the U.S. Commercial Service offices in Singapore, the Philippines, and Taiwan, recruited more than 70 buyers to meet the U.S. exhibitors.
Trade Associations:
The Cosmetic & Perfumery Association of Hong Kong Ltd.
http://www.cosmetic-pefume.com
A listing of the Association’s members comprising contact details of importers, distributors, wholesalers, and retailers is available at this website.
Hong Kong Cosmetic Technical Resources Centre
Provides consultancy on regulatory requirements and assistance with product registrations in Hong Kong and China, technical support on product development, product testing and quality control services, provides customized technical training for cosmetic practitioners, and assistance in setting up laboratories.
Hong Kong Commercial Specialist’s Contact:
Swee-keng Cheong (Miss)
Email: swee-keng.Cheong@mail.doc.gov
Tel: (852) 2521-1467; Fax: (852) 2845-9800