Researchers develop new products at the laboratory of Huzhou Yufan Cosmetics Technology Co. [Photo/Tide News]

In the laboratories of Ximeien Cosmetics Co in Daixi town, Wuxing district, Huzhou, Zhejiang province, researchers are testing new scalp care products, Tide News reported on Feb 23.

With three new products coming to the market, the company anticipates a remarkable annual revenue growth of over 35 percent, according to Wu Yuli, supervisor of the company.

The company has expanded from skincare to scalp health, established a research and development group, and collaborated with hospitals to address scalp issues, showing its prowess in the realm of functional skincare.

"Many enterprises in the town are gradually removing the label of being affordable alternatives to high-end products and changing the situation of primarily supplying raw materials to international cosmetics brands," said Wu Shuang, deputy head of Daixi town. 

At present, domestic beauty companies pay more attention to the research and development of raw materials, product innovation, consumer insight, and marketing.

Proya, an early arrival to the town, continues to invest heavily in R&D and scientific teams. Their flagship products with exclusive raw materials have gained widespread acclaim, leading sales during the "Double 11" shopping festival on platforms like Tmall and Douyin.

Huzhou Yufan Cosmetics Technology Co is carving a niche in fragrance production. Its focus on travel-size perfumes for younger demographics and infusing cultural connotations into the fragrance has contributed to an impressive output value nearing 200 million yuan ($27.61 million) last year.

Chinese cosmetics brands are also expanding globally, with Wuxing district's cosmetics exports witnessing a robust annual growth of about 50 percent in the recent two years.