Today’s blog post focuses on the  cosmetics industry – one of the fast-growing industries in China – discussing the IP issues relating to patent protection, trade mark protection and design protection. As counterfeiting in cosmetics is still a big issue in China and failing to protect your IP can sometimes mean the end of the business endeavor to China, it is  wise to have a robust IP protection strategy in place. Today’s blog post introduces European SMEs the tools they can use to build a good IP protection strategy in the cosmetics industry in China. 

In recent years, due to the expansion of China’s middle class, increased interest in personal care has led to the rapid development of the cosmetics industry. In addition, the adjustment of the tariff system in China and the rise of e-commerce platforms like Taobao or Jindong also contributed to the sales of cosmetics products. The industry shows an annual growth of 12% and broke the RMB 200 billion mark of sales volume in 2015[1]. The most successful products are skincare products, including moisturisers and masks, products safe for children, anti-aging products, spot-removal products, and sunscreen and whitening products.

In this market, image and trustworthiness are paramount. Chinese cosmetics consumers are more resilient to advertising and increasing influenced by peer recommendations, meaning that consistent, favorable mentions through social media such as WeChat groups are the pillars of sales growth. At the same time, the production and sale of fake and inferior products continues to be prevalent on the Chinese market – despite recent campaigns and targeted efforts of the Chinese government. Particularly, due to their popularity and high quality, overseas cosmetics brands are the usual victims of counterfeiting[2]. The infringement acts are mainly trade mark and outer packaging imitation, and customers consequently confuse the authentic and counterfeit products, leading to loss of sales, reputation and oftentimes product liability issues. Thus, for cosmetics enterprises, wishing to enter to China, it is still very important to have a robust IP strategy in place. Continue reading “IP Protection in China for the Cosmetics Industry” »