Customized Cosmetics and Supplements in China
Globally, the trend toward customized cosmetics and food supplements is slowly gaining momentum. Consumers are increasingly interested in products tailored to their individual needs, and brands are eager to seize the opportunity to lead this emerging market.
However, in China, this wave of customization is still in its infancy. While the country is known for its trust in traditional Chinese medicine, the supplement industry is already a massive market, driven by an aging population and health-conscious youth.
Understanding the Market Potential
China's cosmetics and supplements market is vast and growing. Despite the current limited presence of customized products, the potential is significant. Currently, only a few brands offer customized products, relying on consumer surveys where customers answer questions about their medical history for supplements or assess their skin for cosmetics. These assessments are subjective.
When it comes to customized products based on objective test results, such as genetic testing, there are no major players in the market. Why is that?
One of the few customized food supplement brands available in China sells vitamins based on survey responses provided by customers.
HGR Restrictions
A significant hurdle for foreign companies entering the Chinese market is the regulation of human genetic resources (HGR). Since 1998, and more rigorously since 2019, China has implemented strict controls to protect its genetic data. These regulations prohibit foreign entities from collecting or storing Chinese genetic material and restrict the transfer of such data outside of China.
The key regulations include:
The Administrative Provisions on Human Genetic Resources (2019): This law requires foreign companies to collaborate with Chinese entities for any research involving HGR. Approval from the Ministry of Science and Technology (MOST) is mandatory, and the Chinese partner must be fully involved in the research process.
The Biosecurity Law (2021): This law complements the HGR provisions by imposing additional security reviews on the transfer of genetic data, especially if it involves sensitive information that could impact public health or national security.
For international brands, this means that any attempt to introduce genetically personalized products must be carefully planned and executed in partnership with local entities. This obstacle is why we're not seeing more activity in this type of product. Instead, brands are focusing on customization based on surveys while waiting for changes in the law and potential opportunities that would make market entry easier.
Brands will run their Tmall stores alongside WeChat stores, allowing customers to complete questionnaires on their mini app and sign up for membership.
Conclusion
The potential for customized cosmetics and supplements in China is there, but navigating the regulatory landscape is complex. By forming strategic partnerships and focusing on non-genetic personalization through surveys, brands can position themselves to capture this market while competition remains low.
Brands built on genetic testing should consider simplifying their approach to surveys for the Chinese market to establish a presence and grow their brand in China.