Estée Lauder Plans Large Expansion In Asia

Estée Lauder said it plans to hire thousands more staff in the next seven years in Asia as part of the cosmetics company’s expansion of its retail operations in the region. Company chairman William Lauder said the cosmetics manufacturer gets 42 percent of its revenue from the United States, while 37 percent comes from Europe, Middle East, and Africa. Asia-Pacific accounts for 21 percent. Online sales account for only a small part of the company’s sales, with retail stores and beauty salons being responsible for majority of total sales. While men’s grooming products account for only 5 percent of sales, the segment is expected to see stable growth, according to Lauder.

"Estee Lauder eyes big Asian expansion as mainland China sales roar", South China Morning Post, March 13, 2013

Carrefour's Shanghai Stores Feature QR Code-Scanning Service, Ensure Food Safety

Carrefour said shoppers at its stores in Shanghai, China, now can trace the chain-supply history of vegetables and fruits on sale by scanning the Quick Response codes of products using their smartphones. Information that consumers can see include production place and date and business license of suppliers. The QR code platform is part of Carrefour’s food safety efforts in China, which include purchasing agricultural products directly from farms.

"China: Shanghai Carrefour customers can now scan own produce", FreshPlaza, March 12, 2013

L’Oréal Posts Slower Sales Growth In China, Faces Increased Competition

L’Oréal reported its revenue in China grew 12.4 percent to 12.05 billion yuan ($1.91 billion) in 2012, down from 18 percent in 2011. L’Oréal China chief executive officer Alexis Perakis-Valat said the drop in sales growth rate was due to the slowdown in the country’s cosmetics market. He said, however, that the company will continue growing, particularly in the country’s smaller cities, as well as in the cosmetics market and men’s skincare segment. At present, L’Oréal holds 14 percent of the cosmetics market in China; however, other cosmetics companies have been aiming at the market. Among these companies are Procter & Gamble, which has launched new cosmetics brands in the country, and Estee Lauder, which plans to launch a new brand.

"L'Oreal scents success despite slowed growth", China Daily, March 01, 2013

Tesco Plans To Launch Online Stores In China, Thailand

Tesco said it plans to launch its online grocery in Thailand and China as part of efforts to expand its multichannel business. The supermarket company also plans to open its next store in Bangkok as it seeks to expand its presence in Thailand. In Shanghai, Tesco plans to launch online stores to support the retailer's 120 stores in China.

"Tesco to launch online offer in Thailand & China", Retail Gazette, February 25, 2013

World's Largest Ecommerce Firm Alibaba Aims To Make World Hear About It

After handling $170 billion worth of online transactions in 2012, China's Alibaba is forecast to become the world's first ecommerce company to handle $1 trillion a year in transactions. Alibaba plans its initial public offering, estimated to be valued at $55 billion to more than $120 billion, making it a bigger IPO deal than Facebook's. Also, the IPO is expected to draw world attention to Alibaba and its remarkable rise to the top, as well as its potential for future growth. Alibaba's growth could speed up even more, driven by China's ecommerce market which is forecast to be bigger in 2020 than existing markets in North America, UK, Japan, Germany, and France combined. Another strength of Alibaba is its customer data, which is derived from its handling of more than 60 percent of parcels delivered in China.

"The Alibaba phenomenon", The Economist, March 23, 2013

Face Care Remains Largest Segment Of Skincare Market Dominated By Asia-Pacific

Facial skincare remains the largest category of the skincare market worldwide, according to Euromonitor. The market research firm also forecasts face skincare will grow 86 percent by 2016. Asia-Pacific is the most dominant region in the premium and mass categories of the facial skincare segment, data also shows. Despite the slowdown in their economies, Japan and China remained the top skincare markets, with China expected to post over 40 percent market growth.

"Asia-Pacific continues its dominance in premium face care, says Euromonitor", Cosmetics Design , March 21, 2013

Facial Skincare, Natural Products Driving Skincare Market In China, Study Shows

Facial skincare products account for 92 percent of the total skincare market in China, according to Mintel. Data also revealed strong growth potential for the market for beauty products with natural ingredients, with 90 percent of urban female consumers saying they prefer buying natural-ingredient products. Also, 80 percent of urban female consumers they always check the ingredients of skincare products before buying them. Moreover, 90 percent said they are concerned about the safety of skincare products.

"Mintel Beauty & Personal Care highlights growing potential for natural beauty products in China", Mintel, March 13, 2013

China's Ecommerce Market Gets Crowded With Entry Of Sina And Baidu

Moves by non-ecommerce companies, including Sina and Baidu, highlight ecommerce's potential to become China's biggest and most profitable online market. Sina has begun developing its own ecommerce services, confirming media reports that its ecommerce partnership talks with Alibaba have failed. Negotiations between Sina and Alibaba, the world's largest ecommerce company, reportedly failed over price disagreements. China's leading online search company Baidu formed a strategic partnership with Yihaodian, the online store company acquired by Walmart in 2012.

"Baidu's Walmart ties, Sina's e-payments", South China Morning Post, March 23, 2013

Sephora Opens Largest Store In China

Cosmetics retailer Sephora opened its biggest retail store in China. Located in Shanghai, the store offers 118 brands, with 17 from Asia, and almost 7,000 products. Employing 98 people, the store highlights the “success of the brand among Chinese consumers,” said Sephora CEO Chris de Lapuente. After opening its first store in China in 2005, the retailer today has 133 stores in 47 towns in the country.

"SEPHORA Opens Its Largest Flagship Store in China", Business Wire, January 31, 2013

L'Oréal Wields New Tailored Products To Cut P&G's Lead In China's Personal Care Market

L'Oréal is relying on new products using traditional medical ingredients to cut its rival Procter & Gamble's lead in the beauty and personal care markets in China. More than 260 scientists are working L'Oréal's Shanghai research center to create products, including lipsticks and shampoos, designed for Chinese consumers. Examples of new products include a cosmetic balm for men seeking to cover up facial skin imperfections and skin serums derived from white fungus, ginseng, and a parasitic mushroom known as cordyceps. L'Oréal's share of the market, forecast by Euromonitor to reach $34 billion in 2013, rose to 11 percent in 2011 from 9 percent in 2008. P&G lost 1.6 percentage points to 15.8 percent in 2011.

"L’Oreal Eats Into P&G’s China Lead With Mushroom Lotions", Bloomberg , March 22, 2013

Wipro Targets China's High-End Skincare Market With L.D. Waxson Buy

Wipro Ltd.’s acquisition of Singapore-based L.D. Waxson Group will help it expand its presence in China’s luxury skincare market, according to Vineet Agrawal, president of the Indian company’s consumer unit. L.D. Waxson’s Bio-essence range includes beauty creams that contain bird’s nest, which is used in traditional Chinese drugs for its anti-aging and tissue-repair properties. Aside from serving as Wipro’s ticket to China, a market forecast by Euromonitor International to reach $6.1 billion in value in 2016, Bio-essence will also help the Bangalore-based company grab shares of the skincare markets in Southeast Asian countries with ethnic Chinese populations, Agrawal said. Wipro and other Indian companies are expanding overseas to help increase sales as economic growth slows in India to 5 percent in the year ending March 31, 2013.

"Bird’s Nest Cream to Drive Wipro’s China Growth: Corporate India", Bloomberg, February 13, 2013