Li & Fung Group subsidiary LF Beauty is seeking to cash in on soaring demand for beauty products in Mainland China and wider Asia.
China’s skincare and cosmetics market is projected by the Hong Kong Trade Development Council to grow by an average annual rate of of 12.8 per cent from this year through 2019 – considerably faster than the expected global rate of 6 per cent.
“Asian beauty is now setting the pace for the world. China, South Korea, Japan as well as the entire Southeast Asian market, are very important for us. [That] represents about 4.5 billion in population,” said Gerard Raymond, president of LF Beauty, in an article published by China Daily.
A large population base dominated by younger demographic distinguishes the Asian market from more mature western markets, he said.
“The younger generation consumer knowledge and wealth is growing very fast. And they are very willing to try new and innovative things.”
LF Beauty is partners with suppliers and retailers of product solutions including fragrances, skincare, color cosmetics, and in a one-stop-shop offer provides retailers with logistics support, merchandising systems and point-of-sale solutions.
Raymond said in the China Daily report that “there never have been more opportunities for brands to stand out and keep pace with their consumers” than in the Asia region
“It’s never been more challenging. In this competitive environment, we work to help many of the world’s best-loved brands to innovate, thrive and become market leaders,” he said.
“We have seen that Chinese women now are very interested in beauty products from South Korea,” he said. “In this respect, we have already established a joint venture in South Korea, which allows us to transfer their knowledge to Chinese market directly and serve the demands of local consumers.”