Besides, an increasing number of famous fashion brands have diversified into developing cosmetic products under their own brands. The upper-end market has long been dominated by the international famous brands such as Lancome, Guerlain, Max Factor, Estee Lauder, Elizabeth Arden, Clinique and Shisheido. These are major players in the industry, providing a wide variety of products on the market. Their brands and images are well recognised internationally. They predominate the top tier market segment that makes new brands difficult to enter.
Competition is the fiercest in the second-line brand market and niche markets.
For example, South Korea is emerging as a competitive manufacturing base. South Korea is famous for the Ginseng-added skin care products, and their production has reached the international quality and hygiene standards. There is a rising trend of Hong Kong companies exploring the Chinese market. The potential of the mainland's cosmetics and toiletries market is good. As a result of rising income and lower import tariff protection, Chinese customers who used to buy the domestic products are now shifting to imported goods which have better quality and better product images.