March 25th, 2017
Having one of the world’s fast- growing economy and not feeling at all the global financial crisis, China has experienced an invasion of Luxury cosmetic brands such as L’oreal , Christian Dior , Chanel or Yves Saint Laurent but the most popular brands are still Lancome , Estée Lauder or Guerlain. In big cities like Hong Kong , Shanghai or Beijing prices are rising from 4 % up to 30 % since the beginning of 2013 depending on the product or brand. This phenomenon occurs due to increasing manufacturing costs and also because of the decreasing sales in other countries.
Latest studies confirm that even if prices are higher than other European or American countries , Chinese people are loyal to the brands they like and demand for expensive brand goods is still growing so cometic luxury market will not be affected. In the next three years Estée Lauder group that is also the owner of famous Luxury brands like La Mer, Clinique , Origins or Bobbi Brown is willing to expand their business and products in five more cities in China. Having placed their Innovation Center for Asia in Shanghai city , the company is doing high research for improving their future products that will fit the needs and properties of Asian and Chinese skin features.
To summarize I would say that regarding luxury sector in cosmetics , Chinese customers represent the main objective for the most powerful companies in beauty industry.