Published by ChinaMNC · Keqiao

Zhejiang’s Cosmetics Sector: What Foreign Founders Should Know

Zhejiang is building a coordinated cosmetics industry with strong retail and export growth, new regulatory reforms and a regional division of production and branding. Foreign founders can use this as a practical guide to market entry, compliance and location choices in China.

Why Zhejiang’s Cosmetics Market Matters for Foreign Founders

Zhejiang Province is actively strengthening the core competitiveness of its beauty and cosmetics industry. For foreign founders considering a company in China, the province offers a combination of consumer demand, export activity and a clearly defined regional industry layout. According to a media briefing held by the provincial drug administration, in the first half of the year, cosmetics retail sales by units above the designated size in Zhejiang reached 28.7 billion yuan, up 24.7% year on year. Cosmetics exports reached 8.01 billion yuan, up 22% year on year. These figures indicate continued growth momentum in both domestic sales and overseas trade.

For a foreign founder, these numbers are not just headline statistics. They suggest that Zhejiang is a market where cosmetics products are both sold domestically and exported. That dual orientation can matter when choosing where to register a company, where to locate research or branding functions, and how to structure supply chains.

A Regional Layout That Shapes Business Decisions

Zhejiang has developed a distinct industrial layout for cosmetics, with different cities taking on different roles. This matters for foreign founders because location affects access to suppliers, talent, logistics and regulatory support.

Hangzhou: Headquarters, R&D, Sales and Branding

Hangzhou is positioned as the center for cosmetics headquarters, research and development, sales and branding. For foreign founders building a brand-focused or R&D-oriented presence in China, Hangzhou may be relevant because the source identifies it as the province’s hub for these functions.

Huzhou: Demonstration Window for Quality Zhejiang Cosmetics

Huzhou is described as the demonstration window for “Quality Zhejiang Cosmetics.” This suggests a role connected to quality standards and showcasing products, which may be relevant for founders who prioritize quality positioning.

Jinhua: Global Color Cosmetics Manufacturing Base

Jinhua is identified as a global color cosmetics manufacturing base. Foreign founders involved in makeup products or manufacturing partnerships may find this relevant when considering production arrangements.

Ningbo and Shaoxing: Imported Cosmetics and Packaging Materials

Ningbo and Shaoxing are positioned as bases for imported cosmetics and packaging materials. For founders importing cosmetics into China or sourcing packaging, these cities may be worth noting as part of the province’s industrial map.

Quzhou, Lishui and Wenzhou: Ecological Cosmetics Cultivation Bases

Quzhou, Lishui and Wenzhou are described as ecological cosmetics cultivation bases. This suggests a focus on ecological or nature-oriented cosmetics development, which may align with certain brand positioning strategies.

For foreign founders, this layout means that Zhejiang is not a single market but a coordinated network. The choice of city should follow the business function: branding and R&D in Hangzhou, manufacturing in Jinhua, import and packaging in Ningbo or Shaoxing, and ecological cosmetics in Quzhou, Lishui or Wenzhou.

Regulatory Support and Quality Oversight

The provincial drug administration has implemented a program to improve both the capacity and quality of ordinary cosmetics filing. It has also explored new regulatory service models. In 2025, the pass rate of provincial-level cosmetics supervision and sampling reached 99.79%.

For foreign founders, this indicates that Zhejiang places emphasis on filing capacity and quality oversight for ordinary cosmetics. Compliance with filing requirements is part of operating in China, and the province’s focus on service models may help companies navigate regulatory processes. However, the source does not provide specific procedural guarantees, so founders should still verify current requirements with professional advisers.

New Policy Measures: What They Signal

In October this year, Zhejiang issued “Several Measures on Deepening Cosmetics Regulatory Reform and Promoting High-Quality Industrial Development.” The document proposes 20 measures across four areas: reform and quality improvement, regulatory efficiency, industrial capacity and support upgrading. The measures will take effect on November 15.

The stated aims are to help enterprises improve innovation efficiency, reduce compliance costs and expand development space. For foreign founders, this signals a policy direction toward more efficient regulation and support for innovation. It does not create automatic guarantees, but it may affect how companies plan product innovation, compliance and market expansion in Zhejiang.

Practical Takeaways for Foreign Founders

• Choose location by function: Consider Hangzhou for headquarters, R&D, sales and branding; Jinhua for color cosmetics manufacturing; Ningbo or Shaoxing for imported cosmetics and packaging; and Quzhou, Lishui or Wenzhou for ecological cosmetics.
• Monitor filing and quality requirements: The province emphasizes ordinary cosmetics filing capacity and quality, with a 2025 supervision and sampling pass rate of 99.79%.
• Track the new measures: The 20 measures take effect on November 15 and focus on reform, regulatory efficiency, industrial capacity and support.
• Use the market data as context: First-half retail sales of 28.7 billion yuan and exports of 8.01 billion yuan show growth, but founders should conduct their own due diligence.
• Plan compliance early: Regulatory reform may reduce compliance costs over time, but companies still need to meet current requirements.

How ChinaMNC Can Help

Foreign founders who want to register or operate a company in China can contact ChinaMNC on WhatsApp or WeChat at +86 153 1898 8535 for help with company registration and ongoing operations. The team can assist with understanding the practical steps involved in setting up a presence in Zhejiang or elsewhere in China.

This summary is based on information published by the relevant Chinese government website and is general information, not legal or tax advice.