Don't be fooled! 90% of cosmetic approval document agents are unqualified

"Ms. Li's entrepreneurial dream almost got ruined by a piece of paper." She had just registered her cosmetic brand last year, but after spending half a year, she still couldn't obtain the product approval document. It was not until she found a professional agency that the problem was solved in two weeks. Cosmetic approval document agent companies, an industry out of the consumers' sight, are a crucial part of the beauty ecological chain. How do they operate? And how should one choose? This article will uncover the truth of this "hidden corner".

The multi-billion-dollar business behind a piece of approval document

According to industry data, the number of domestic cosmetic filings in 2023 increased by 47% year-on-year, but the success rate of independent applications is less than 30%. Mr. Zhang's agency handles over 500 cases every year. He revealed, "Professional thresholds such as ingredient compatibility and testing standards make 90% of start-up brands choose outsourcing." Such companies mainly provide three types of services:

• Full-case registration and filing service: From formula compliance assessment to obtaining the final approval document
• Expedited channel handling: Using the policy green channel to shorten the approval time by 50%
• Approval document transfer agency: Activating idle cosmetic registration certificate resources

Three minefields in choosing an agency

Leading institutions such as Zhongshitong suggest that when identifying an agency, one should be vigilant against:

• Low-price trap: Most "all-inclusive services" below 30,000 yuan have hidden fees
• Over-promising: Institutions claiming a "100% pass rate" are suspected of false advertising
• Lack of qualifications: Check whether they have the filing certificate for cosmetic registration and filing service institutions

A certain industry report shows that among the filing rejection cases caused by improper operations of agencies in 2022, 67% were due to material fraud, and 19% were due to insufficient professionalism.

Industry changes under the new regulations

With the implementation of the Regulations on the Supervision and Administration of Cosmetics, the agency industry is undergoing a reshuffle:

• The electronic application system forces service transparency
• The mandatory requirement for efficacy evaluation gives rise to the integration of testing resources
• The qualification certification of safety assessment personnel forms a new barrier

"Now the first question from customers is 'Do you have a toxicological engineer?'" Ms. Li's agency has specially formed a 5-person expert team for this. It is worth noting that the business volume of cross-border imported cosmetic filings has increased by 210% year-on-year, becoming a new growth point.

Does your brand need agency services?

Start-up teams are recommended to consider agency services first:

• When the product line has fewer than 3 items, the outsourcing cost is 40% lower than building an in-house team
• Special-effect products (such as freckle-removing, sunscreen) require professional solutions to avoid risks
• Projects planned to be launched within 6 months need to leverage the expedited channel

You might as well take a test: If you can accurately state 3 situations for the registration of new cosmetic raw materials, perhaps you can try independent application; otherwise, leave professional matters to professionals.