(Yicai) May 15 -- China’s beauty industry is growing fast and has given rise to its own “C-Beauty” segment, which are Chinese beauty brands distinguished by unique design styles and cultural identity. Together with Chinese consumers’ rising demand for higher standards, this is creating significant new business opportunities for French companies, according to a senior executive at France’s national organization for the perfume and cosmetics industry.

The rise of Chinese brands does not mean that foreign brands lose out, said Franckie Bechereau, deputy general manager of Cosmetic Valley, which represents over 6,300 small and medium-sized cosmetic companies as well as leading international beauty brands. Instead, she sees it as a win-win situation where both sides can benefit.

There is growing cooperation between Chinese and French companies, Bechereau said at the recent China Beauty Expo. Many Chinese perfumers have received professional training in France, while French suppliers of premium fragrance ingredients are actively targeting the Chinese market and hoping to partner with local perfume brands.

One such firm is Cristalco, a French producer of alcohol, sugars and stevia extracts, which is exhibiting in China for the first time this year.

An account manager from the Paris-based company, which has long supplied raw materials for perfumes by brands such as Chanel and Christian Dior, told Yicai that now is the perfect time to enter the Chinese market. After working with Chinese customers for five years, she has seen demand for high-quality ingredients rise very quickly.

Another French company trying to get deeper into China’s beauty supply chain is Capsum, a cosmetics contract manufacturer.

Capsum has already worked with Chinese brands to launch capsule-style face masks, Audrey Royère, the company's European sales director, told Yicai. One of the Marseille-based firm’s main goals at this year’s expo is to find Chinese filling partners so that it can eventually manufacture products together with local companies in China.

China’s cosmetics market across all sales channels reached CNY1.1 trillion (USD161.7 billion) last year, with domestic brands accounting for 57.3 percent of the market, according to data released by the China Association of Fragrance Flavour and Cosmetic Industries earlier this year. The Chinese cosmetics market has transitioned from being dominated by international brands to a new era led by homegrown brands.

Editors: Tang Shihua, Kim Taylor