The cosmetics market in China is experiencing noticable growth– so much so that experts are increasing their plans and predictions in the sector for 2013…

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Chinese nationals will be the biggest consumer group for L’Oréal’s luxury cosmetics within two years, according to the Paris-based company, which is planning a big push into smaller cities, new product launches and the use of internet chat forums to extend distribution.
 
Jean-Paul Agon, chairman and chief executive of L’Oréal said that the logistics of rolling out the luxury business was the main challenge in the huge country, not worries about the economy. “I’m not concerned about the economic slowdown in China – it’s very limited,” he said in Shanghai. “The penetration of luxury is just beginning – we are building the future of luxury in this country.” 
 
The sales drive in China will be spearheaded by a continued push into so-called tier 3 cities – outside the largest conurbations, a strategy L’Oréal has been pursuing since 2011. Lancôme, L’Oréal’s best selling luxury product line in the country, had been launched in 70 cities in the past two years, of which 33 were tier 3.
 
Nicolas Hieronimus, head of L’Oréal’s luxury division, said the unit had doubled sales every four years in China for the past decade. “We are bound to continue at the same pace,” he said, forecasting that “in 2014 or 2015, Chinese consumers will be the number one consumer for L’Oréal Luxe in the world”. This includes Chinese tourists making purchases outside the country.
 

Read more about L’Oreal’s plans for China here, from the FT.

Estee Lauder also has also enjoyed increasing popularity in China. Estee Lauder’s net income rose 13 percent in its latest quarter as shoppers in the U.S. and emerging markets, particularly China, purchased more of its beauty products. Results for Estee Lauder’s fiscal second quarter beat analysts’ average estimate, and the company lifted its forecast for the year after experiencing an 11% sales growth in Asia.

Read more about Estee Lauder here, from Bloomberg Business Week.

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