Oriental Beauty Valley

The annual Oriental Beauty Valley International Cosmetics Conference is one of the most important gatherings in the beauty industry in China. CHINA DAILY

In recent years, Fengxian has paid much attention to developing its beauty and health industry and initiated the Oriental Beauty Valley construction project in 2015 to support economic upgrading and transformation.

According to Gu, the Oriental Beauty Valley, or OBV, is different from traditional industrial parks and economic development zones which are comprised of new buildings and factories in a designated area.

"The Oriental Beauty Valley is a concept to cover the whole area of Fengxian and will take the beauty and health industry as the core, and it is a beauty and health alliance with multiple industries," Gu said. "Fengxian wants to create a beauty and health industrial cluster that covers all related industries such as skincare products, perfumes, daily consumer chemicals, biomedicine, food and healthcare products."

Construction on the OBV has recorded significant breakthroughs.

As of the end of 2019, it was home to 131 large-scale enterprises, which each have an annual operating income of 20 million yuan ($2.9 million). Beauty products under more than 3,000 brands, including Nu Skin and Cosmax, are produced in the valley. About 25 percent of all facial masks used in China are produced in the OBV.

In March, cosmetics company Shiseido announced the setup of a research facility in the valley to drive innovation. The Shiseido site will focus on environmental and sustainability-related research and share resources with partners in the valley.

Wuxi Apptec's new site in Fengxian, covering 10.4 hectares, has been completed. The site will provide research and development services to global businesses.

A space, specially designed for the Institute Pasteur of Shanghai under the Chinese Academy of Sciences, is ready to debut.

For companies, Fengxian is one of the few places in Shanghai that have irreplaceable offerings, according to local authorities. They are: the gathering of key industry players, premium government service, strong policy support for businesses and talent, well-developed facilities and infrastructures, and it is part of the Lingang Special Area of the China (Shanghai) Pilot Free Trade Zone.

"Brands can quickly settle down, implement their plans and turn dreams into reality in Fengxian because the valley has all the resources they needed－from R&D to market," said Yuan Fei, general manager of the OBV Group. The group is responsible for the valley's development, management and investment promotion.

The annual Oriental Beauty Valley International Cosmetics Conference is also making Fengxian known to the world. First held in 2018, the conference has become one of the most important beauty industrial gatherings in China. The 2019 event attracted representatives from 30 global cosmetic groups, including L'Oreal, Estee Lauder and Shiseido.

Bright future

It is estimated that by 2025, the overall industrial output value of the OBV will reach 100 billion yuan, almost double its current figure. Fengxian will have a complete beauty and health industrial chain that covers design, R&D, smart manufacturing, quarantine and testing, exhibitions and trade. It will be one of the largest beauty and health industry clusters in Asia, with all companies owning independent intellectual property rights, according to the district government.

Apart from the health and beauty industry, Fengxian is encouraging development in biomedicine, advanced manufacturing, new energy vehicles and emerging industries. Currently, the district boasts more than 150 biopharmaceutical enterprises and 130 automobile parts suppliers.

So far, Fengxian boasts about 80 square kilometers of industrial land, which can serve different needs of companies, according to the local government.

The central business district in the Nanqiao New Area of Fengxian. CHINA DAILY

tangzhihao@chinadaily.com.cn