Nestlé Continues China Expansion, Opens Two Factories

Nestlé opened two new factors in China as part of its expansion of its business in the country by growing its range of local and global brands. Nestlé CEO Paul Bulcke attended the opening of the Nescafécoffee factory in Shandong Province and the Yinlu Foods factory in Anhui Province. Part of Nestlé’s joint venture with China’s leading manufacturer of ready-to-eat peanut milk and ready-to-eat rice congee, the Yinlu Foods factory created more than 2,000 new jobs.

"Nestlé continues to grow its business in China with opening of two new factories", Nestlé , July 11, 2013

Chanel Grabs Top-Brand Spot In China's Luxury Market, Report Says

Chanel is the most sought-after global luxury brand in China, according to the second edition of the study World Luxury Index China. Data showed the brand has overtaken rival Louis Vuitton, due mainly to increased consumer interest in various product segments. Also, Louis Vuitton’s ranking is limited by the fact that interest in the brand comes mostly from the fashion market. Also, the report showed that interest of China’s consumers is dominated by automobiles, 53.5 percent; beauty products, 22.7 percent; and fashion, 14.9 percent. In the beauty segment, Estée Launder, Lancôme, and Dior have retained their spot as the top 3 brands, with Lancôme overtaking Dior at the number 2 position. Skincare accounted for about 60 percent of all beauty-related searches, according to data from the report.

"The World Luxury Index™ China 2013 : The Most Sought-After Luxury Brands", Digital Luxury Group, June 27, 2013

Beauty And Personal Care Industry Outperforms Rest Of The Market

Stocks of cosmetics and personal care products companies gained 32 percent in 2013, according to market research company IBD. Leading the industry’s expansion are anti-aging products maker Nu Skin Enterprise, which gained 19 percent, and Peers Prestige Brands and Inter Parfums, both of which rose 13 percent. In the United States, the industry achieved $68.7 billion in sales and $433.4 billion globally in 2012. Sales in the US are forecast to grow 3–4 percent over the next five years to reach $81.7 billion by 2017, according to Euromonitor International. Growth in the emerging markets has made up for the slowdown in Europe, North America, and Japan, and global sales are forecast to expand around 5 percent yearly to reach $562.9 billion by 2017.

"Big On Beauty: How Cosmetics Corps Beats The Market", Investors, July 12, 2013

Herbalife Restructures To Become More Vertically Integrated

Responding to increased consumer demand for higher quality and safer dietary supplements, and to the proliferating global array of supplement product regulations, Herbalife has decided to vertically integrate its operations. That means a greater reliance on in-house manufacturing, and a lesser reliance on contract manufacturers. The company is building or acquiring factories here and abroad, and reorganizing its management team to better handle a vertically integrated structure. The company hopes to bring 65 percent of its manufacturing in-house by 2015, and has already invested $200 million in the transformation over the last few years.

"Herbalife’s Strategic Transformation", Nutraceuticals World, July 02, 2013

Wal-Mart Plans To Expand Sam's Club Warehouse Club Business In China

Wal-Mart Stores Inc. said it plans to open seven new Sam’s Club membership-only warehouse clubs in China in the next two to three years. Aimed at the country’s affluent families, the planned warehouse clubs are part of the U.S. retailer’s efforts to deal with the slowdown in its hypermarket business. Sam’s Club opened its first store in China in 1996 and currently has 10 stores in the country. While conventional retailers, including parent company Wal-Mart, are slowing down their expansion plans in China, Sam’s Club’s business model has been successful in the country. In the United States, there are 620 Sam’s Club stores, generating $49 billion in annual sales for the company.

"More Sam's Club stores set to open", China Daily, July 02, 2013

Unilever's Omo Only UK Brand On US-Dominated List Of Top Brands In China, Survey Reveals

Unilever’s Omo brand of laundry products is the eighth-most popular brand in China, according to a survey of 60,000 consumers conducted by Millward Brown on behalf of BBC. Restaurant chain KFC took the top spot on the list dominated by US brands, with eight of the top 10 spots occupied by brands owned by US-based companies. Data from Millward Brown revealed that while Chinese consumers used to favor low-priced products, rising living standards and income levels, combined with declining trust in local brands, local consumers are turning toward foreign-owned brands.

"Unilever's Omo detergent strongest UK-owned brand in China", Marketing Magazine, July 25, 2013

Economic Uncertainty Drubs Ad Spending In Hong Kong

Advertising spending in Hong Kong rose 9 percent to HK$19.9 billion in the first half of 2013 from HK$18.2 billion in the previous year, according to media monitoring company admanGo. Data also showed ad spending declined to HK$3.4 billion in June from HK$3.6 billion in May. In contrast, ad spending rose 13 percent during the first half of 2012, driven by promotions aimed at mainland shoppers and marketing campaigns related to the London Olympics. Marketers expect only a modest increase in ad spending in 2013, according to a survey published in February 2013 by the  Hong Kong Advertising Association and market research firm Nielsen, with a slowing down economy causing pessimism overall in the market.

"Slowing economy hits marketing campaigns", South China Morning Post, July 25, 2013