Being home to two-thirds of the global population, Asia Pacific is a true lure for beauty and personal care brands. In China alone, the estimated population in 2015 is 1.39 billion. With the 1,020,000 Chinese millionaires and over 60,000 ‘super-rich’, China is poised to consume one-third of global luxury goods.
The major cities represent a high share of the retail sales in cosmetics with Shanghai representing 12%, Beijing (11%), but the dynamic is stronger in the secondary cities of the country, such as Wuhan, Chongqing, Chengdu, and Hangzhou.
Branded manufacturers are now launching products exclusively for the Chinese market. For example, Shiseido’s Urara is formulated specially for Chinese women. It contains an EGF (epidermal growth factor) – an active ingredient booming in Asia in comparison to the other regions. Many of their formulations are based on a triple amino acid multi-repairing complex of ingredients to moisturise, whiten, and revitalise skin, and to promote collagen production.
With 12 of its 28 brand offerings already selling in the Chinese market, the US cosmetic conglomerate Estée Lauder recently released a 13th brand exclusively for the Greater China market – Osiao (‘O-Shao’), its first premium Asian skin care range. Reflecting an astute strategy allowing both the better penetration of the Chinese market through an already well- established domestic player and canny product diversification, L’Oréal has recently acquired Magic Holdings, China’s facial mask segment leader.
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