China focus: Latest developments in China’s booming beauty market
Perfect Diary aims to tap into complexion category to achieve profitability
Chinese colour cosmetics brand Perfect Diary is innovating in the facial complexion category to drive the brand’s turnaround as make-up continue to decline in China.
Irene Lyu, head of strategic investments and capital markets explained that the company’s “key goal is to achieve profitability” for Perfect Diary.
Lyu elaborated that the brand intends to focus product development more on facial complexion products.
Lancaster sales grew five times year-on-year in Hainan
Coty-owned skin care brand Lancaster saw sales on Hainan Island multiply by five year-on-year, boosting the beauty major’s confidence in building its skin care presence in China.
Lancaster sales grew over 20% in the first quarter of FY2023, a result of the brand’s performance in Hainan, even with strict COVID-19 restrictions.
The Monegasque brand has also been performing well outside of Hainan and topped Sephora’s rankings as the number one niche skin care brand.
Pola Orbis will proceed with POLA China expansion despite strict COVID-19 policies
Japanese cosmetics company Pola Orbis said China’s strict COVID-19 policies would have no impact on its plans to continue expanding POLA in China.
Despite the troubles, the company reaffirmed its commitment to expanding POLA’s business in China.
It noted that its luxury brand has a lot of potential with younger consumers and the second- and third-tier cities.
Estée Lauder anticipates Hainan recovery in fiscal 2024 – CFO
Estée Lauder Companies is expecting a slow recovery in China’s crucial travel retail hotspot of Hainan and does not anticipate things to be “fully back to normal” by the next fiscal year, said its CFO.
Speaking during the firm’s Q1 earnings conference, Tracey Thomas Travis said the firm was not expecting a full recovery by the fourth quarter (Q4) of its fiscal year.
She added that Hainan’s recovery has been more sluggish than expected so far but reaffirmed the firm’s commitment to the travel retail mecca.