SHENZHEN, China: It’s 10pm at the world’s largest electronics market, and delivery staff who once carried computer components and mobile phones are now overflowing with carts of Mac lipsticks, Bioderma washers and other foreign beauty brands.
Most famous Huaqiangbei electronics retailers have gone home for the most part, but wholesale cosmetics retailers will work at the Mingtong shopping center, which is packed with 1,400 outlets, to work until 2:00 a.m. to meet the rising demand.
“No matter what promotion is going on, he’s busy every night,” a salesman nicknamed Ying said last week.
Ying opened the cosmetics booth three months ago when a landmark change in the electronics market of the famous entrepreneurial city took place.
There are dozens of multi-storey sites in Huaqiangbein, with about 38,000 companies historically selling microchip coils and other components. It is also a meeting place for companies from all over the world who want to get things done in the surrounding factories.
But rents are rising because unsuitable markets are getting sweeter, with centers on an ever-increasing scale and 5G “experience centers” covering their tidy roads. Valley.
Once many outlets in the market were selling Apple and Samsung products, vendors have tightened on cheap local brands like Xiaomi and Vivo and stricter IP laws. For many, the easiest move was to get out of electronics.
“We were selling phone parts, but by 2016 some markets were 50 percent empty, so we had to try something else to survive,” said Lin Muxu Mingtong, general manager of Digital City Market. Huaqiangbei for 15 years. “We saw that there was a huge demand for beauty products, be it teenagers, women, men between the ages of 60 and 70.”
THE BEAUTY OF BEAUTY
Chinese consumers have a growing hunger for cosmetics, with sales of 256.9 billion yuan ($ 39.26 billion) from January to October, up 5.9 percent year on year, according to official data. Over the same period, overall retail sales fell by 5.9%.
Although Mingtong organized a number of cosmetics retailers for several years, the business took off this year when border closures were discontinued by traders going to Hong Kong and tax-free merchandise, wholesale wholesalers said.
“For properly licensed importers, we can buy it packaged here and sell the products for a few cents,” said a trader named Scott, who declined to give his full name, saying he would have trouble talking to security staff. to a journalist.
“It’s a rather gray area,” he said, not all vendors claiming the imported goods or going through the right path.
Some buyers in the market buy items in small batches to sell items in China’s e-commerce sites, such as Alibaba’s Taobao.
“They’re few at a time, but we’re moving such volumes so that profits are good,” Scott said.
Seller Eva Zhou said all of her cosmetics in Europe were real, but she was near the end of her life. The more vendors go to market, the more likely it is that margins will tighten.
“I think a lot of people have lost their jobs with the virus, and now there’s good money here, but it won’t work if everyone does it,” he said.