The Market for Essential Oils in China to be the Fastest Growing, WeChat store helps to seize the chance

 Synopsis:

The development of China essential oil market

Problems existing in essential oil market in China

Essential Elements, a successful march to China mainland market


Essential oils are practically everywhere nowadays and are well-known because of aromatherapy, a form of alternative medicine in which healing effects are ascribed to aromatic compounds. These concentrated liquids generally extracted by distillation from plants such as lavender, lemongrass, mint, orange, rose, and many more.

Usually, essential oils are used in perfumes, cosmetics, soaps air fresheners and other products, for flavoring food and drink, and for adding scents to incense and household cleaning products.

The development of China essential oil market

Several years ago, essential oil is mainly used in beauty SPA clubs, the consumer group is relatively smaller and older. After that, the concept of essential oil began to be introduced into cosmetics and daily skin care products. With the rise of the Internet, and especially the improvement of life quality, so many young people began to use essential oil and gradually become the main consumption group of essential oil.

According to data from PWC Industry Research Institute, the market size of Chinese essential oil industry expanded year by year from 2014 to 2019. In 2017, the market size reached 4.33 billion RMB, with a year-on-year growth of 28.52%. In 2018, the market size reached 5.711 billion RMB, with a year-on-year growth of 31.94%; By 2019, the market size of China's essential oil industry has reached 6.94 billion RMB, with a year-on-year growth of 22.47%. With the growing demand of downstream medical, feed, daily skincare products and other fields, the market size of Plant essential oils in China is gradually expanding. 

2014-2019 market size of China essential oil industry

 

During Covid-19, due to the rapid increase of work pressure, the transformation of consumption consciousness and the demand for improving quality of life, essential oil consumption expanded a lot. Now essential oil products are also available in shopping malls counters, exclusive shops and boutique shops, which further promotes consumers' understanding of essential oil products.

From the experience of the European and American markets, aromatherapy essential oil products generally account for about 30% of the cosmetics market. Therefore, it is speculated that China's essential oil market has great potential, and with the continuous rapid growth of China's economy, this market will continue to develop at a growth rate of 5%.

Problems existing in essential oil market in China     

The global essential oils market is growing at a very fast pace due to increasing hectic and busy lifestyles of the people, resulting in significant demand for stress-relieving therapies, driving the demand for aromatherapy. However, the essential oil market in China is still existing many problems.

The first is the quality of essential oil is not guaranteed.

Some enterprises heard that essential oil is expensive in international market, so they blindly invested in the establishment of essential oil plants, without a detailed investigation of the market, without inviting authoritative experts to demonstrate the feasibility in advance, and ignoring the international market composition standards. In order to seize the market, chemical spices directly replace natural essential oils, leading to uneven quality of market products.

The second is the market itself is not standardized and often in chaotic.

Due to the lack of a unified standard of essential oil production, the quality and price on the market is varies. Non-standard planting, random picking and raw material processing, poor equipment and so on have led to the current situation.

Considering all these problems in Chinese market, overseas essential oil brands are welcomed by Chinese customers.

Essential Elements, a successful march to China mainland market

Essential Elements, a well-known Hong Kong essential oil brands, is created to provide a unique platform where customers can freely choose over our wide and growing range of high-quality raw material products. Essential Elements is launched and fully supported by Wing Hing Chemical Co., Ltd. which has been in business serving the local and international pharmaceutical and cosmetic clients for over 40 years in Hong Kong.



After seeing the potential of China mainland market, they decided to march to mainland market. In 2020, Essential Elements contact LinkieBuy, the biggest e-commerce service provider in China, to build a online SAAS stores for Chinese mainland consumers.

Through the online SAAS store based on WeChat mini program, consumers can choose to buy a variety of DIY ingredients especially essential oil in the mini program store according to the recipe and make their own products at home.


LinkieBuy can not only help overseas essential brands to carry out digital transformation, provide multi-platform online store construction, but also provide global warehousing logistics solutions, mini program store operation, multi-scene product distribution and other full-link trade services to China.

For overseas brands, the cost of online entry into China through LinkieBuy is very low, and the services provided by LinkieBuy can continuously accumulate the brand of enterprises in The Chinese market, which is conducive to improving consumers' trust in products and laying a foundation for brand empowerment.

 

 

 

 

评论

发表评论

此博客中的热门博文

What we can learn from the development of Japan retailers in post-pandemic era

图片
  As a world economic power, Japan ‘ s retail industry has been extremely developed. Since the World War II, Japan’s retail industry has rebuilt, developed, prospered and matured amid the rapid economic rise in the last half century. As an important part of Japan's industrial economy, the evolution of the retail industry is still very representative. The history of Japan's retail industry The start of modern retail in Japan can be traced back to the post-World War II. After the Second World War, the development of the Japanese retail industry can be roughly divided into five stages. The first period was the economic recovery and rapid growth period in Japan. After the war, the department store resumed. Although the government launched the "Department Store Law" to protect the interests of small and medium retail owners, the department store is still blooming in a more rapid way. The second period is the heyday of rapid economic growth. During this period, the large-sc...
阅读全文

WeChat Mini Program Store V.S. Traditional eCommerce platform, why should you try a mini program store?

图片
As you likely already know, China is the world’s largest market for E-commerce. Don’t believe it? The total value of China’s E-commerce market reached USD $5.9 Trillion 2020, more than the combination of the United States and Europe. Behind this rise are the popularity of social commerce shopping in China. WeChat mini program store is a typical social ecommerce platform. And this article will compare the WeChat mini program store with traditional platform from the following aspect.   I. Business Modes   Traditional e-commerce (as Taobao, JD) is essentially a search e-commerce, all the buying and selling logic is based on user search. While on mini program store, users often get product from friend dialogue, group chat, moments of friends, articles of public accounts, and then they buy. For businesses owner, the biggest drawback of search is that when a user searches, he is constantly comparing prices, qualities and other details. The "search, compare and think" of...
阅读全文

THREE WAYS TO EXPEND YOUR BUSINESS IN CHINA

图片
Entering Chinese Market is on the agenda of many companies for it is large and growing. However, choosing an appropriate market entry strategy for China is not an easy decision. There are quite a few channels and each of them has advantages and disadvantages. This article will introduce fundamental three,  1) find a distributor;  2) choose an e-commerce platform; 3) invest an enterprise in China .  These three methods will be compared so that you will know what suits your business best. FIND A DISTRIBUTOR Cooperating with a distributor may be the easiest and quickest strategy of entering China. By shipping your products to the distributor, you will effectively pass the risk onto them which will motivate them to actively try to sell your goods. Though it’s the most effective way to export to China in a short run, there are some disadvantages. For instance, some distributors are based on Hong Kong or Taiwan, they are not that closely connected to Chinese market, and s...
阅读全文