BW Confidential - Issue #6 - May/June 2011 - (Page 56)

Market watch: China Industry roundtable Market vision Four major beauty players share their views on market trends, the future of retail and the challenges of doing business in China by Oonagh Phillips China is now L’Oréal’s third largest market and its luxury-goods division claims a 27% share of the prestige market L’Oréal China vp & gm luxury products division Philippe Lamy How do you see the development of the market? Coty Prestige gm China T erry Chua Coty has seen good success in China with its high-end designer fragrance brands and Lancaster skincare Shanghai Jahwa United deputy manager Zhou Wang Local cosmetics company Shanghai Jahwa United’s brands include the Herborist and newly re-launched high-end brand Shanghai Vive P&G vp prestige products global market development Carolyn T astad The group is working on developing its prestige fragrance brands in the market, while continuing to build on skincare line SKII Philippe Lamy: Last year it was up by around 21-22% and this year it is accelerating. We have a market share of 27% and are showing gains, so we’ll probably have a 28% share this year. The changes in product registration did not really have a big impact on the business. We weren’t able to launch, so we had to animate the catalog; things were delayed and there was a huge backlog, but now the situation is much better. Terry Chua: Last April there were problems with product registration meaning that a lot of products couldn’t get approval and for eight months there was little newness in the market. Last year the selective fragrance market was up by 18 to 20%, and we lost a little business because of the registration issue. We are now seeing approvals for products in the pipeline getting through, so in the next half there will be a lot of new launches. This year will be very exciting as everyone has pent-up pipelines, but it will also be very competitive. One main trend is the strong growth of high-end luxury or designer brands. We’ve seen good growth with Chloé and Marc Jacobs. Zhou Wang: The high-end is growing faster than other segments, as the consumer trades up. Products based on traditional Chinese medicine and brands with local appeal are growing fast. Consumers are seeing that a product from the West isn’t necessarily superior. Carolyn Tastad: The Chinese consumer is very engaged in prestige beauty. Skincare is significant and fragrance is less well developed, but we’re seeing growth. Fragrance is evolving, and over the coming year we will continue to use our brand portfolio to reach more Chinese consumers. We anticipate growth in male skincare as we see an openness from Chinese men to engage with the category. May-June 2011 - N°6 - BW Confidential 56

Table of Contents for the Digital Edition of BW Confidential - Issue #6 - May/June 2011

Cover
Comment
Contents
Update
- Brand & retail news recap
- Digital digest
- Companies on the move
Take note
- Market facts, figures & trends
Best of BW
- Highlights from our e-publication
Launches
- The latest in fragrance, skincare & make-up
Interview
- Puig ceo Marc Puig
Insight: Skincare
- Category overview
- Department store initiatives
- Perfumeries
- The latest trends
Wellness
- Discounting in spas
- Spa case studies
Retail
- New store concepts
Travel retail
- Market analysis: Asia & Middle East
- Chinese travelers
Radar
- Four up-and-coming beauty brands
Market watch: China
- Analysis: country overview
- Industry roundtable
- Prestige retailing
- E-commerce
Packaging
- Decoration techniques
Last word
- LPK Beauty vp group creative director Liz Grubow

BW Confidential - Issue #6 - May/June 2011