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Euromonitor tips rise of Chinese cosmetic brands

Chinese cosmetic brands are poised to play an increasingly significant role in the beauty and personal-care industry in China, according to market research group Euromonitor International.
Sales have been growing to reach 4 per cent of the total value of business in China last year by the top 10 companies in the sector, up from 3 per cent in 2011.
Domestic brands have developed multifunctional products, which Euromonitor International says is key to their success, particularly in second-tier or lower cities. Market development previously focussed on top-­tier cities.
It says awareness of brands has grown stronger through their sponsorship of reality TV shows. As Chinese consumers have become more mature, they have changed their attitudes towards local brands, which they once regarded as being of lower quality than imported products. As well as this, domestic companies are becoming more popular because of their use of natural and organic ingredients, with Euromonitor International citing Chinese brands Shanghai Jahwa and Yunnan Baiyao.
It also talks about Shanghai Pehchaolin’s BlueMyth series launched last year as an example of a more segmented upmarket offering that is distributed through specialist beauty retailers and department stores.
Meanwhile, in the face of this growing domestic competition, some multinational brands have withdrawn from the Chinese market, including Revlon in 2013 and Garnier in 2014.
Other brands have turned to such B2C platforms as JD.com and Tmall to tap into the market in lower­-tier cities. Euromonitor says Lancome, for example, has created an official online flagship store on Tmall.com.
Another approach by the multinationals is to acquire known domestic brands, with L’Oreal China already having bought MG face masks.

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