Overview on Cosmetics and Personal Care Industry : Hong Kong / Mainland. Albert Leung Director, The Cosmetic & Perfumery Association of Hong Kong

Transcription

1 Overview on Cosmetics and Personal Care Industry : Hong Kong / Mainland Albert Leung Director, The Cosmetic & Perfumery Association of Hong Kong

2 Speaker Bio Albert, Leung Kwok-Pun Director, The Cosmetic & Perfumery Association of Hong Kong Secretary General, Hong Kong Society of Cosmetic Chemists Executive Director, Hong Kong Hair & Beauty Merchants Association Business Development Manager, Hong Kong Cosmetic Technical Resources Centre Visiting Lecturer, Hong Kong Polytechnic University Programme Instructor, Diploma of Cosmetic studies and Management, School of Continuing and Professional Studies, The Chinese University of Hong Kong Visiting Tutor, Cosmetic Science Course, Institute of Professional Education And Knowledge, VTC Group Member, Royal Society of Chemistry, UK Columnist, HK Sister Beauty Pro Magazine

3 Content Brief Regulatory Framework for cosmetics products, a comparison of Mainland and Hong Kong New Trend for Mainland cosmetic market: Cross Border E-tail

4 Definition of Cosmetic Cosmetic Product refers to daily chemical product, being rubbed, sprayed or other similar methods, to spread onto any part of the body surface (skin, hair, nails, lips, etc.), in order to achieve purposes of cleansing, eliminating bad odours, skin-care, beauty and modifying.

5 HK regulatory framework No pre-approval system for cosmetic products No permits required No mandatory testing Post marketing surveillance, by Customs and Consumer Council For manufacturing, factory license by TID is suggested but not mandatory.

6 HK regulatory framework Ordinance #456: CONSUMER GOODS SAFETY ORDINANCE to ensure consumer goods are safe and for incidental purposes. Ordinance #138: PHARMACY AND POISONS ORDINANCE To prohibit the use of any poisons or pharmaceutical-use substances in non-drug products Ordinance #362 Trade Descriptions Ordinance To prohibit false trade descriptions, false, misleading or incomplete information, false marks and misstatements

7 Mainland regulatory framework Ordinance concerning hygiene supervision over cosmetics Article 9: Before a new ingredient is used to manufacture cosmetic products, it must be approved by CFDA. New ingredient refers to natural or synthetic materials that is the first time being used to manufacture cosmetic products in China. CFDA approval is a must for using a New ingredient to manufacture cosmetic products.

8 Mainland regulatory framework Ordinance concerning hygiene supervision over cosmetics Article 15 For the first importation of a cosmetic product, the importing unit is required to submit the application with relevant information such as the product specifications, the quality standard, and methods of testing, production license issued by the official authority of the exporting country (or region) together with a sample to CFDA, to obtain approval

9 Mainland regulatory framework Ordinance concerning hygiene supervision over cosmetics Article 16 All imported cosmetics should be inspected by Inspection Authorities. Only those qualified cosmetics are allowed to be imported.

10 Months after starting -1st1st 2nd 3rd 4th 5th 6th 7th 8th 9th 10th 11th 12th 13th Appointing China Legal Representative Document Consolidation Prelimary Assessment (mainly formulation and product packaging) Missing Document Preparation Product Testing Document Notarization Permit received application submitting to CFDA CFDA evaluation permit issued

11 Mainland regulatory framework Non-special cosmetics Hair care products Skin care products Colour cosmetics Nail care products Fragrances Special cosmetics: Spot-removing Sunscreen products Hair dye Hair perm Hair growth Hair removing Breast massage products Slimming products Deodorant

12 Number of Imported Cosmetic Permits Issued Year Permit Issued (including General and Special-Use Cosmetics) China FDA website

13 Mainland Trade Barriers For Foreign Cosmetic Suppliers Complicated permit application and related high cost Toxicological testing [Animal Test] is a must Cosmetic products, can not be offered as organic items Product claim Organic should be certified by representative certified team under the Ministry of Agriculture MOA have not yet put cosmetic into certified category list.

14 Cross Border E-tail

15 Cross Border O2O E-Trade HK is free trade zone. Mainland consumers purchasing cosmetic in HK is legal and no permit required Mainland consumers can purchase HK cosmetic online HK suppliers will provide additional courier service, to send the goods to consumers address.

16 under new policy, Crossborder purchasing would become workable for cosmetic

17 Cross Border O2O E-Trade "Online (Offshore) Purchasing + Offline Delivery" has become a new pattern of Chinese consumers Cross-border purchasing in some industries (clothing, shoes, snacks) increasing For industries with strict regulation (health supplements, milk powders, cosmetics), cross-border procurement become very popular, due to limited choice on the Mainland complicated permit procedure reduce product launching in market

18 Why HK Geographical Advantage Bilingual marketers, with deep understanding in Mainland Cosmetic Industry 1,890 import-export trade establishments 11,560 Employees in Dec 2013 (data from HKTDC Research Centre) Cosmoprof Asia: World second largest Beauty Expo

19 Thank you!