L’Oreal still dominating China with 12.4% growth

By Michelle Yeomans

- Last updated on GMT

L’Oreal still dominating China with 12.4% growth

Related tags Marketing

According to the latest market research, L’Oreal remains a domineering force in China’s cosmetics sector as it achieves RMB12.05 billion in 2012, less than 20 years after wading into the country’s then, underdeveloped markets.

ResearchMoz reveals that the global cosmetics player is experiencing 12.4% year-on-year growth as it continues to expand its 20 something brands across the continent since 1997.

Alongside L’Oreal, the market researcher places Olay and Mary Kay in terms of governing the sector, which combined are revealed to collectively occupy 12.45% of retail sales. 

In terms of domestic brands, Shanghai Jahwa is highlighted as giving the bigger players a run for their money with its' well-known ranges; Liushen, Herborist and Maxam.

Earlier in the year, the company eliminated four of its brands, Chinfie, Cortry, Ruby and Cocool, and launched three new ones in a bid to move its all-around strategic layout from middle range to high end department stores, and from massive circulation to franchise cosmetics stores.

Thorough review of the market

Overall, ResearchMoz says that despite the China cosmetics industry hitting a downturn, gross retail sales of industrial players above a designated scale increased by 21.5% year-on-year to RMB134.01 billion.

It then indicates skin care as the largest category with the market scale in 2012 hitting RMB 80.48 billion, up 9.9% year-on-year. Amid this sector, creams and anti-ageing products occupy a lion’s share, with the sales standing at above 60% collectively.

As to China’s makeup segment, the analyst reckons it started late but has developed rapidly, with the sales in 2012 grossing RMB23.4 billion, a year-on-year rise of around 20%.

Male segment gaining momentum

By contrast, the sales of emerging market segments, such as men’s cosmetics and children’s and infants’ cosmetics, were found as still occupying a relatively small share in the domestic cosmetic market.

"In 2012, China’s sales of men’s cosmetics stood at less than 5%, while that of children’s and infants’ skin care products accounted for no more than 5.3%, but the growth was fast."

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