China Focus: Our top stories featuring China’s cosmetics industry

1 – Shiseido and A.S. Watson form three-year plan to meet demand for J-Beauty in Asia

Shiseido Company and A.S. Watson Group have put together a three-year plan to co-create new products to meet the surging demand for Japanese beauty products, with Indonesia, the Philippines and China key target markets.​

Due to the surging customer demand for Japanese beauty products, it’s one of the fastest-growing product categories, with consistent double-digit growth year-on-year, said Malina Ngai, group chief operating officer of A.S. Watson Group.

Previously, Shiseido and A.S. Watson co-created the Urban Damage Care range under the sensitive skin care brand d programme.

The exclusive range was introduced into China in April via Watsons stores and exceeded its sales target by three times.

2 – Homecoming queen: Kao sets a date for Sensai’s return to Japan as it plans broader Asian expansion

Kao Corporation has revealed that its premium brand Sensai will be returning to Japan in September, with a China launch to follow in 2020​, and then plans to expand it around Asia.

“To grow Sensai further as the flagship brand in the G11 range, Kao will be introducing the brand into the Japanese market in September 2019 before a Sensai debut in China in 2020 followed by an expansion of the brand throughout Asia,”​ said the company in a statement.

The Japanese personal care company confirmed that the first outlet will be located in the Isetan Department Store at Shinjuku. Following that, the brand will launch in Osaka with a counter in Hankyu Umeda Main Store in October.

By accelerating Sensai’s expansion in Asia and reinforcing portfolio of prestige beauty brands, Kao aims to increase its cosmetics sales to Y400bn ($3.69bn) and achieve an operating income ratio of 15% by 2025.

3 – Laura Mercier expands in Hong Kong duty-free to reach Chinese travellers

Shiseido has increased cosmetics and skin care brand Laura Mercier’s presence in Hong Kong through the duty-free channel in order to capture Chinese travellers.​

The new store in T Galleria Beauty by DFS in Causeway Bay follows the brand’s February launch at T Galleria by DFS, Macau in Shoppes at Four Seasons.

Laura Mercier is currently not available in China, making this expansion particularly important for the brand, said Kenji Calméjane, general manager, travel retail Asia Pacific, Shiseido travel retail.

“Our decision to further expand the business by opening in travel retail was based on reaching our travelling consumers – in particular, the Chinese traveller, as the brand is currently unavailable in the Chinese domestic market,”​ said Calméjane.

He added: “It is also worth noting that travel retail is a unique channel and working with duty-free operators such as DFS presents us with excellent opportunities to build the brand. Travellers are early adopters and as such, are always on the pulse of the latest trends and hottest brands, such as Laura Mercier.”​

4 – Trade war, regulations and trends: ACA Leaders’ Forum 2019 highlights most pressing issues affecting cosmetics sector

The impact of the US-China trade war on the global cosmetic industry’s supply chain, along with new regulations in China and Indonesia​, will have a major impact on the beauty industry in the year ahead.

That’s why the topics will feature front and centre at the fourth edition of ASEAN Cosmetics Association (ACA),  Leaders’ Forum in Singapore.

Le Chau Giang, President of ACA said: “With each edition of the Forum, we look into the most pertinent issues and emerging trends that will benefit the industry. This year is no different and we’re excited to be hosting the event in Singapore again. We look forward to welcoming delegates from all across Asia and beyond.”

5 – Delivering with deer: Calecim to enter China, Indonesia and the Philippines with stem cell skin care

Calecim Cosmeceuticals will launch its skin range featuring red deer umbilical cord-lining stem-cell extracts in China, Indonesia and the Philippines​ after signing a multi-year partnership with Menarini Asia-Pacific.

The brand is owned by Singapore-based biotech company CellResearch Corporation (CRC) and claims to be the only skin care range that uses ethically sourced red deer umbilical cord-lining stem-cell extracts.

Nick Lang, associate director of global distribution at Calecim told CosmeticsDesign-Asia that it was important to grow the business in Asia as it was the fastest-growing aesthetics market in the world.

“We are trying to make Calecim a global brand at the moment. Asia is a really important market for us because it is growing very, very quickly. By the end of this year, our target is to be in 25 countries,”​ he said.