On July 5, The CIE beauty awards 2022 & business reception was grandly opened in Hangzhou International Expo Center. He said that the cosmetic industry is a dream-making industry, and the Chinese cosmetic industry, known as the ‘beauty economy’, has made unprecedented achievements after decades of rapid development. Looking forward to the future, the beauty industry is still promising.

Hou Juncheng said that this year’s second CIE beauty awards was held in Hangzhou, which is unique and at the right time! Hangzhou has unique advantages in building links and channels for global brands in the beauty industry.  

Hangzhou has a deep history of beauty. On the Shore of the Xizi lake, there are the well-known ‘five-Hangzhou’ in the country, including Hangzhou powder, Hangzhou scissors, Hangzhou fans, Hangzhou cigarettes and Hangzhou lines, and Hangzhou powder (powder Rouge). ‘Since ancient times, Suzhou and Hangzhou have produced beautiful women’. From clothing to beauty makeup, Hangzhou has the natural advantage of nurturing ‘she-economy’. From the production base competed for international beauty makeup after the reform and opening up, to the cradle of a number of local beauty brands represented by PROYA and OSM, Hangzhou has become the source of innovation for emerging beauty brands. Hangzhou and its surrounding beauty industry has obvious advantages. According to the data of Zhejiang Provincial Food and Drug Administration and Hangzhou municipal market supervision bureau, as of 2021, the number of beauty enterprises in Zhejiang ranks second in the country, of which Hangzhou alone has 3105 cosmetics registrants and recorders (brand operation companies), accounting for more than 50% of the total in the province.

In 2020, the sales revenue of Hangzhou brand operating enterprises was more than 30 billion yuan, with 13 sales exceeding 100 million. Among them, PROYA achieved the sales of 4.6 billion in 2021, a year-on-year increase of 23%. In addition, Hangzhou also has cutting-edge beauty brands such as Huaxizi and Maogeping, which have been eye-catching in recent years. The development of PROYA is based on Hangzhou. Hou Juncheng said that he had been associated with the cosmetics industry for more than 30 years. At first, he worked as a cosmetics agent in Yiwu, and then the focus of his career shifted to Hangzhou. It was because of the unique charm of Hangzhou that he decided to build his own beauty brand: PROYA. It has been 19 years since it was founded in 2003. PROYA has always shared the same fate with Hangzhou, successfully listed and maintained a high-quality development trend. It has grown into one of the representatives of domestic cosmetics benchmarking enterprises. In the future, they will not only be ‘China’s PROYA’, but also strive to become ‘the world’s PROYA’, and conscientiously strengthen and expand their national brands to the world.

Hangzhou's unique advantages of strengthening innovation and linking global development of the beauty industry in Zhejiang has the unique advantages of strong innovation and linking global resources. 1.The pragmatic spirit of Zhejiang merchants Zhejiang merchants are a group of people who are particularly pragmatic and work down-to-earth. Zhejiang merchants are also a group of people who are particularly brave in innovation and are willing to accept the opportunities brought by new things and new technologies. Hou Juncheng had a deep understanding of this. At the beginning of the Beautéville, inspired by the lessons learned from the fake and shoddy events such as burning leather shoes in Wenzhou in the 1980s, and the enlightenment of the collapse of the entire Chinese health care market due to the chaos in the health care industry at that time, the Beautéville promoted the establishment of the beauty convention system, and all settled enterprises must sign the beauty convention. Jointly abide by the basic principles of ‘law-abiding, fair, honest, pragmatic, mutual assistance and love, sustainable development’, and jointly maintain the high-quality sustainable development of the industry.

2.The advantages of e-commerce industry Hangzhou is the capital of Internet and e-commerce. Internet enterprises, led by Alibaba, have injected the gene of e-commerce and digitalization into the city. Take China’s beauty industry as an example, it has developed to today, experiencing huge changes from offline channels to online e-commerce, and then to live web-based e-commerce. It can be said that every change in the beauty industry has made Hangzhou the focus of the beauty market. Countless busy e-commerce operators and anchors make the trade of Zhejiang and Hangzhou flow to the whole country and the world through online, which is a huge advantage. 

4. The foundation of global beauty industry cooperation is in addition to the chairman of PROYA. Since 2015, Hou Juncheng has assumed another identity, that is, the general consultant of Beautéville Management Committee. In recent years, Hou Juncheng has become a ‘shopkeeper’ in the industry, actively promoted the investment promotion of the town, united with domestic and foreign beauty industry peers, introduced high-end cosmetics terminals and supporting industries at home and abroad, covered the whole cosmetics industry chain, and built bridges and ties between global industries. Through exchanges and cooperation, resource sharing, and win-win cooperation, Chinese cosmetics enterprises can have a more global vision and a higher pattern. Up to now, 235 enterprises have settled in Beautéville, and strategic cooperation agreements have been signed with government agencies or industry associations in 29 countries, including the French cosmetics Valley, the Italian, Spanish and Korean cosmetics associations, the Australian Association, and the Bulgarian national essential oil production and Trade Association. It can be said that with Beautéville as the carrier and window, Zhejiang is becoming a hub for the intersection of the domestic beauty industry and the international fashion industry, and the global cooperation foundation is constantly being thickened.

The essence of innovation is the continuous improvement and progress of product power and core technology. Taking Beautéville as an example, the current Beautéville is working to build the China-Europe Scientists Union, through the introduction of Chinese and foreign high-quality scientific research talents, innovative basic research and development, accelerate the transformation of results, reduce the cost of enterprise research, and strive to break the technical barriers for Chinese cosmetic enterprises to further master the improvement of core product power and competitiveness.

The cosmetics industry is a dream industry, known as the ‘beauty economy’ of China’s cosmetics industry. After decades of rapid development, now it has made unprecedented achievements. Looking ahead, the beauty industry is still promising. 1. The cosmetic industry has a broad market outlook. Since the 19th Party Congress, General Secretary Xi Jinping has repeatedly pointed out that ‘the world today is experiencing a major change that has never been seen in a century’. I believe everyone in the audience has also felt the impact of the pandemic and new industry regulations in the past two years, the beauty industry is undergoing structural transformation. A comprehensive, dialectical, long-term view will find that the crisis and opportunity always coexist, the crisis breeds new opportunities, and the changes foreshadow the new situation. The development of the beauty industry in China has great potential! China as the world’s second largest consumer market of cosmetics, sales scale has reached more than 600 billion yuan, but per capita consumption is far less than Europe, the United States, Japan and South Korea countries. At present, China’s per capita consumption of cosmetics is about 350 yuan, and that of Europe and the United States is 400 euros. It can be said that, compared with developed countries, we still have ten times the development space.

2. The new consumer trend of the rise of domestic products is gaining momentum. At present, famous foreign cosmetic brands such as L'Oreal and Estee Lauder occupy more than 60% of the Chinese market, but the consumption habits and preferences of the new generation of domestic consumers are changing dramatically, and they are growing up in a new era when China is growing from rich to strong. The trust and preference for national products are being established rapidly. From sporting goods such as Li Ning, Anta and Hongxing Erke, to big consumer goods such as new energy domestic cars, all show this new consumer trend. So I say, the future of national brands has great potential, and I expect all the guests and companies here to stand out and lead the development of national beauty together.

Both the leading run of PROYA and the accelerated rise of Beautéville have benefited from the national reform and opening up and policy support, as well as the vigorous development of the Chinese market. Over the years, Beautéville has established extensive contacts with cosmetics industry associations around the world, and has become the ‘link’ between the government and enterprises.

Beautéville is the window and bridge of Chinese cosmetics to the world cosmetics, is the cosmetic industry integration of resources, cooperation and win-win beauty platform, is an institution serving the industry!

Beautéville is willing to share these resources at home and abroad with colleagues who are interested in it. We also welcome cosmetic enterprises to cooperate with the Beautéville to jointly promote the healthy and sustainable development of domestic beauty products, make the Chinese cosmetics market better and better, and let national cosmetics brands go to the world!