I. Industry Risk Analysis

(1) Policy Risks

The anti-aging facial essence cream industry faces multiple policy risks: The drug regulatory department has strengthened the supervision of efficacy claims, requiring companies to provide human efficacy evaluation test reports or literature materials, which directly increases the R & D cycle and compliance costs. The approval process for new raw materials is strict and the cycle is long, limiting the speed of product innovation and iteration. The “Administrative Measures for Cosmetic Labels” strictly restricts the claim terms, increasing the difficulty of marketing compliance. Environmental protection policies promote the requirement for recyclable packaging materials, raising production costs. The new cross – border e – commerce policy may increase import tax burdens, affecting the procurement of international raw materials and price competitiveness.

(2) Economic Risks

Currently, the anti-aging facial essence cream industry faces two risks: fluctuations on the demand side and squeezing on the cost side. During the downward phase of the economic cycle, consumers’ optional consumption expenditure shrinks. High – end skin care products, as non – rigid demands, bear the brunt. The repurchase rate of the customer group and their ability to bear premiums decline, while the competition among mid – and low – end substitutes intensifies. The prices of upstream raw materials (active ingredients, packaging materials) continue to rise due to global supply chain fluctuations and inflationary pressures. Coupled with the increase in compliance costs (efficacy certification, safety testing), the gross profit margin of enterprises is squeezed from both sides. At the same time, the capital winter has narrowed the financing channels for start – up companies. The high – cash – flow support required for brand marketing and channel construction is difficult to sustain. Under the intensified Matthew effect in the industry, the survival space of new entrants is further compressed by the price – cut and inventory – clearing strategies of leading brands.

(3) Social Risks

The inter – generational consumption stratification has increased the uncertainty in the industry. The strict requirements of the younger generations (Generation Z/Generation Alpha) for ingredient transparency and scientific efficacy conflict with the marketing – driven model of traditional brands. The increased price sensitivity of the older generations (Baby Boomers/Generation X) deviates from the high – end trend of anti – aging products. Social media has accelerated the differences in anti – aging awareness among generations, giving rise to the risk of class – action lawsuits for false advertising. At the same time, the “anti – appearance anxiety” movement triggered by the change in inter – generational values is weakening the product premium space.

(4) Legal Risks

Entrepreneurs need to focus on compliance with the cosmetic filing system, the safety approval of product ingredients, and the compliance of advertising. Failure to obtain registration for special cosmetics or using restricted ingredients beyond the scope will result in product withdrawal and high – value penalties. The “Regulations on the Supervision and Administration of Cosmetics” require that efficacy claims must have a scientific basis. Excessive marketing is likely to trigger investigations for false advertising. If the production process does not meet the GMP standards, the enterprise may be ordered to stop production. For cross – border sales, entrepreneurs also need to deal with the risks of conflicts with overseas regulations such as REACH.

II. Entrepreneurship Guide

(1) Suggestions for Entrepreneurship Opportunities

Focus on the micro – innovation of natural ingredients to develop affordable light medical beauty products. Launch portable single – use essence products targeting the sinking market. Replace imported raw materials with domestic ones to establish a cost advantage. Develop precise anti – aging sets in combination with skin detectors. Use popular science marketing by dermatologists on Douyin to build professional trust. Tap into the early C and late A scenario needs of the young group and launch time – sharing care combinations. Develop replaceable core and environmentally friendly packaging to reduce repurchase costs. Use skin microbiome technology to create the concept of microbial flora balance. Collaborate with medical beauty institutions to launch customized essence products for post – operative repair.

(2) Suggestions for Entrepreneurship Resources

Entrepreneurs in the anti – aging facial essence cream industry should focus on the integration of core resources: First, cooperate with university laboratories and biotech companies to obtain patented active ingredients (such as hyaluronic acid microcapsules and plant stem cell extraction technology). Reduce the initial R & D costs through technology licensing or joint R & D. Enter the production field through the asset – light model of contract manufacturers. Lock in ODM enterprises with international certifications (such as ISO22716) to ensure product quality. At the same time, conclude price – hedging agreements with raw material suppliers. Utilize the Tmall new product incubation plan and the traffic support policies for the beauty category on Douyin to obtain the resource of platform – level KOLs for product testing. Build private communities to accumulate user data. Collaborate with medical beauty institutions to launch “home – use + professional care” packages, share the customer pool, and share customer acquisition costs. Hire legal advisors with experience in filing for efficacy skin care products to avoid compliance risks under the “Specifications for the Evaluation of Cosmetic Efficacy Claims”.

(3) Suggestions for Entrepreneurship Teams

Entrepreneurs in the anti – aging facial essence cream industry should give priority to forming interdisciplinary teams. Recruit biochemistry experts to solve the R & D of active ingredients and patent layout, and match them with members with a medical background to strengthen clinical efficacy verification and compliance review. At the same time, introduce senior marketing talents in the beauty industry to accurately grasp the pain points of consumers’ anti – aging needs. Focus on cultivating the ability of social media content creation and KOL resource integration. The team needs to establish a flexible cooperation mechanism, synchronize changes in the raw material supply chain, regulatory updates, and competitor dynamics on a weekly basis. Core members should have experience in applying for international raw material certifications (such as ECOCERT). The founder should personally build a user laboratory to collect real – time skin – feel feedback from women over 35. The financial director should be proficient in the cost structure of the three special certificates (production license, product filing, and efficacy evaluation) in the cosmetics industry.

(4) Suggestions for Entrepreneurship Risks

Focus on technological compliance and market differentiation: First, ensure the patent layout of core ingredients and complete the filing with the National Medical Products Administration. Reduce regulatory risks through third – party efficacy certifications (such as SGS). Select contract manufacturers with GMP certification and sign quality deposit agreements to avoid joint liability for production accidents. Adopt the DTC model for direct sales to reduce the risk of channel overstocking. Control the initial inventory within three months’ sales volume. Promote small – sized essence products below 30ml to lower the user’s trial – and – error threshold, and combine it with a subscription system to increase the repurchase rate. Lock in more than three suppliers at the raw material end to prevent the supply interruption of core ingredients (such as Proxylane). Maintain a six – month safety stock of key raw materials.