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Estée Lauder to release first China-focused skin care brand

By Andrew McDougall+

04-Oct-2012

Cosmetics player Estée Lauder is furthering its efforts to make its presence felt in Asia-Pacific and leverage its rapid sales growth in China by launching a new skin care line aimed specifically at the local consumers.

Osiao will be the company’s first skin care brand specifically designed for a particular group of consumers; addressing the unique skin care needs of Asian women.

“One way we plan to stay ahead and maximise sales is to focus on individual needs and develop products for different cultures and lifestyles,” explains CEO Fabrizio Freda.

Great expectations

“This launch represents the next step of our expanding business in Asia. Now we have evolved to offer a relevant, locally produced brand with an assortment of products targeted to devoted consumers in this region.”

With sales in China growing at almost 40 percent last year, thanks to e-commerce which accounts for almost two thirds of overall sales, Freda states that a local brand could drive the growth as the masses better identify with the brand and the company.

Estée Lauder announced that operations in China contributed almost 70 percent of its growth in Asian markets, and China is its third-biggest market after the US and the UK.

Listen to consumers

The Osiao product range has been developed and tested at its research institute in Shanghai over the past five years, and could be marketed elsewhere in Asia, if proven successful. It will be released in Hong Kong before it is made available in mainland China.

“It demonstrates our deep long-term commitment to the Asia-Pacific region and Chinese consumers in particular, are avid skin care users,” Freda continues.

The reasoning behind the skin care range, which will comprise of 21 products, is to combine the best of Eastern tradition with Western dermatology. Estee Lauder focus groups reported that Chinese women prized clarity and luminosity in their skin the most; so that is the focus of Osiao.

The Osiao brand is positioned as a luxury product and the company expects it to successfully grow in this market like similar products have in Russia, Vietnam, and India over the past two decades.

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