BW Confidential - Issue #14 - May/June 2013 - (Page 54)

Market watch: China Industry viewpoint Market changes BW Confidential asks four major brands about how they see the beauty business evolving in China, from consumer shopping habits to changes in retail by Raphaëlle Choël Chanel general manager China Philippe Larrieu Elizabeth Arden president of Greater China T Zheng om Yue Sai (L’Oréal) general manager Stéphane Wilmet La Prairie vice president Asia Peter Stockdale How is the market performing and how is the economic slowdown affecting beauty? PL: The overall growth of the selective beauty market slowed down significantly in 2012, even though fragrance and cosmetics are generally more resilient than other luxury goods. Despite the slowdown, the outlook for 2013 and beyond remains quite positive. China is made up of a multitude of many different markets, with a lot of opportunities for growth. Brands need to think more deeply and have a clear, long-term strategy on how to address these markets, as well as have a clear understanding of who their consumers are. TZ: There has been a strong demand for prestige cosmetics from domestic consumers and growth in China has been above 20% over the past five years. Although there has been a slowdown in the country’s overall economy, the negative impact on prestige cosmetics has not yet been felt. Those who currently use prestige beauty are looking for better performance from their products, as well as more expensive items to satisfy their ‘perfect skin dream’. I am therefore confident that the category will keep growing by around 10-15% per year. SW: Chinese beauty brands are enjoying fast growth, and at Yue Sai, we are seeing double-digit growth. PS: China continues to be among the fastest growing regions in the world for luxury beauty. As the US and Europe deal with the challenges of the global financial crisis, Asia continues to grow strongly, providing fantastic opportunities in terms of sales. Research suggests that the Chinese consumer intends to spend more on prestige beauty in 2013 than she did in 2012. What have the major shifts in the market been over the past year? PL: China is continuously undergoing major changes in consumer behavior and in retail. Chinese consumers are a very diverse population when it comes to what their needs and expectations are, or how they perceive brands. Still, overall there are a growing 54 May-June 2013 - N°14 - BW Confidential

Table of Contents for the Digital Edition of BW Confidential - Issue #14 - May/June 2013

Cover
Comment
Contents
Update
- Brand & retail news recap
- 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 Clarins Group ceo Philip Shearer
Insight: Skincare
- Category overview
- Skincare devices
- Retail case studies
- The latest trends
Retail
- Amazon
- Store concepts
Digital Facebook
Market watch: China
- Country overview
- Industry viewpoint
- National domestic airports
- Department stores
- Third- & fourth-tier cities
Travel retail
- Emerging Asia analysis
- Passenger profiles
- Interview: King Power Group Duty Free & Travel Retail Hong Kong managing director Sunil Tuli
Radar Up-and-coming brands
Emerging markets Company profile: VLCC
Packaging
- Industry outlook
- Differentiation techniques
Last word Brand Keys founder and president Robert Passikoff

BW Confidential - Issue #14 - May/June 2013