Analyzing the Development Status of Contemporary Chinese Cosmetics Market via Practices of Merge and Acquisition in the Luxury Industry

Abstract

China’s cosmetics industry has long been in a situation of potential problems. Especially during the COVID-19 pandemic, the cosmetics industry suffered certain setbacks, resulting in limited development. The cosmetics market in China has always been dominated by foreign products. Through research, it has been found that there are many domestic cosmetics brands, but there is a lack of experience in management and operation. This article analyzes the mergers and acquisitions and development history of international luxury goods groups, and analyzes whether there are any parts that can be used for reference to promote the development of the domestic cosmetics industry. The article found that due to the unified production and non-reliance on manual characteristics of the cosmetics industry, only a portion of experience in management and operation can be learnt. It does not support Chinese brands to develop solely according to the merger and acquisition methods of luxury goods groups.