Long-term roaming in the gray regulatory zone, 'no one' toothpaste and other dental care products have finally found 'mother'. The Legal Office of the State Council recently promulgated the Regulations on the Supervision and Administration of Cosmetics (revised draft submitted for examination). (hereinafter referred to as 'submitted for examination') and publicly solicited opinions to clearly incorporate dental care products into the category of cosmetics.
People in the daily chemical industry told the Journal of Finance and Economics that this may have an impact on the supervision, circulation and promotion of dental care enterprises such as toothpaste in China, raising the threshold for entry of the industry, but the new regulations have little impact on the tax and final price of dental care-related products.
What aspects will be more 'manageable'?
'Integrating dental care products such as toothpaste into cosmetics and strengthening industry management * The important impact is on supervision and advertising.' Zhang Yu (a pseudonym) who owns a well-known toothpaste brand in the daily chemical industry told the Journal of Finance and Economics.
'Oral care has not been specially managed before. Like many other common products, it is only managed by the quality supervision department through the quality law. However, if it is included in the cosmetics category in the future, it will probably be managed by the Food and Drug Administration, which will be much stricter.' Zhang Yu, for example, said that according to the current regulations, special cosmetics need to be approved, so now many toothpastes of drug concepts may need to apply for special approval, and some may also need to go through human trials to prove the efficacy. For example, at present, there is no requirement for the labeling of ingredient content on toothpaste packaging, and consumers can not understand its specific efficacy. After the inclusion of cosmetics, all ingredients must be labeled according to relevant regulations, and the labeled names should be arranged in descending order according to the amount of added, and imported cosmetics are no exception, and must be labeled in the Chinese language. Indicate.
On the other hand, the impact is in advertising and circulation promotion. According to figures provided by the China Association of Oral Clean Care Products Industry, retail sales increased by 5% in 2014, market share of ultra-high-end products was 20%, market share of high-end products was 8%, market share of mid-end products was 52%, and market share of low-end products was 20%. From the efficacy point of view, Chinese herbal medicine products rose slightly, accounting for about 19% of the market, fresh products accounted for 10.7%, whitening products accounted for 29.9%, anti-caries products accounted for 16.3%, anti-sensitive products accounted for 8.4%, multi-functional products accounted for 9.8%, whitening, fresh and anti-caries products decreased by about 1% compared with 2013.
Will raising the threshold affect prices?
'Around the four major oral care themes of whitening, freshness, fixing teeth and bleeding, many toothpaste enterprises have derived many concepts, some of which arbitrarily exaggerate the efficacy of propaganda, or use toothpaste as a drug to advertise and fool consumers in an attempt to earn higher profits.' Focusing on oral care, Feng Jianjun, a daily industry analyst, told reporters that after putting toothpaste into the cosmetics category, enterprises need to standardize advertising, return to the basic attributes of toothpaste cleaning, and win market recognition depending on product quality.
It is reported that in the draft submitted for review, the relevant departments have defined cosmetics in detail, and 'the main purpose of using dental care products such as toothpaste is to clean and beautify, which conforms to the definition of cosmetics', and stipulated that cosmetic advertisements should be true and legal, and that they should not claim or imply that the products have medical effects, nor use other names. To mislead consumers by guaranteeing or implying the efficacy of products.
Zhang Yu said: 'As enterprises, of course, do not like the increasingly stringent regulation of regulatory authorities, but for asymmetric information consumers, they are vulnerable groups, more stringent supervision is conducive to protecting their right to know and interests. The United States, the European Union, Japan and other countries have included dental care products in the category management of cosmetics.
'Good companies are not afraid of being regulated. For those toothpaste companies that speculate in concepts, the future may not be so easy.' Zhang Yu said, 'Of course, if strictly implemented, it will also be a challenge for regulators to see how detailed the regulations are.'
In addition to the regulatory impact, there are concerns that toothpaste and other oral care products will be included in the cosmetics category or will be charged corresponding cosmetics consumption tax, toothpaste and other oral care products overall tax will increase.
'Not all cosmetics are subject to a consumption tax.' Zhang Yu told reporters that toothpaste as a necessities of life, the possibility of levying consumption tax is not great. In the future, it will increase the difficulty of examination and approval and supervision for toothpaste-related enterprises, which may increase part of the cost of enterprises, but the toothpaste industry is completely open to competition, and toothpaste enterprises will observe the price changes of competitors and dare not arbitrarily raise prices.
According to figures from the China Association of Oral Cleaning and Nursing Products, the sales revenue of 45 toothpaste manufacturers in China was 18.12 billion yuan in 2014, an increase of 8.98% over the same period of last year, and the total profit was 3.13 billion yuan, an increase of 21.51% over the same period of last year.
In 2014, the top 10 sales brands in the industry were Black, Crest, Yunnan Baiyao (73.57, 1.38, 1.91%), Colgate, China, Lengsuanling, Na'ais, Shuke, Comfort and Bamboo Salt, among which black brands accounted for about 21% of the market sales; Yunnan Baiyao, a local brand, ranked third steadily, was close to or surpassed in a certain region in the second place. Christie's brand.
The market share of the top 10 brands is still quite different. The 10th is only about 12% of the 1st, and the gap is more obvious in the big market. Sales volume and sales growth * the big brand is Shuke, followed by Jinkoujian, and then Comfort, Lengsuanling and Yunnan Baiyao. Among them, sales volume of Shuke increased by 37% and sales volume increased by 43%.
Oral cleaning care