Unilever Starts Building Third Manufacturing Site In China

Unilever launched its third China manufacturing plant in Pengshan County in the country’s Sichuan Province. With a total land area of 27 hectares, the manufacturing site’s first phase will be a $48.7 million detergent production facility capable of producing more than 200,000 tonnes. Aside from catering to the China market, the Sichuan facility will supply products to other countries.

"Unilever launches new plant in SW China", Xinhua General News Service, September 11, 2013

Osiao Launches Marketing Campaign Featuring Singer And Actress Miriam Yeung

Estée Lauder's Osiao brand of beauty products for Asian women announced its endorsement deal with actress and singer Miriam Yeung. As brand ambassador, Yeung will be featured in the brand's advertising and advertorials, public relations, in-store, and on the Osiao website. Launching in October 2013 issues of beauty magazines, the campaign will highlight the brand's Inner Radiance Concentrate and Inner Radiance Beauty Tablets product lines.

"Osiao Debuts a New Radiance with Miriam Yeung, Award-Winning Actress and Singer", Estée Lauder, September 05, 2013

China's Animal Testing Requirement Puts Western Cosmetics Firms In A Bind

While Western cosmetics companies are excited by the prospect of continuing growth in China’s $32 billion beauty products market, they are also in a quandary regarding the country’s requirement that cosmetics be tested first on animals before selling them to local consumers. Hundreds of thousands of animals are reportedly killed each year in tests required by the government for all new beauty and personal-care products, according to animal rights group Cruelty Free International. United States, European, and Indian regulators have already banned animal testing, with the European Union expanding the ban to outlaw sales of new products tested on animals elsewhere.

"An Ugly Dilemma for Beauty Companies", Businessweek, September 26, 2013

Chinese Shoppers Find Ways To Circumvent Imported Goods Sticker Shock

Chinese consumers – whose average per capita income is $7.500 compared to $42,693 in the U.S. – are paying a lot more for the same retail goods, from food to clothing to luxury items, that the rest of world buys. According to experts, the higher price tags reflect not only government taxes and tariffs, but also the steep costs of opening a retail store in China – passing tests, getting licenses and permits, etc. – all of which are  passed on to the consumer. For years, consumers were willing to pay the higher prices for the cachet of owning quality imported goods. But these days the sticker shock is leading not only to government crackdowns but to consumer backlash: shoppers are using the Internet and travel abroad to buy goods for less.

"In China, Veil Begins to Lift on High Consumer Prices", The Wall Street Journal, September 04, 2013

Estée Lauder Revs Up Revenue By Consolidating Product Lineups And Remaining Focused On Premium Market

Premium cosmetics company Estée Lauder reported its profit grew 84 percent for the fiscal year ending June 31, 2013, with total net sales breaking US$10 billion for the first time. Several factors helped drive the company’s revenue growth including focusing its resources on reduced number of product lineups and a conservative approach to expanding into emerging markets, including China and Brazil. Also, the company has focused on raising awareness for its brands in medium-sized cities in China and Brazil and on promoting its prestige brands instead of expanding significantly into the mass market.

"It’s a Beautiful World for Super-Premium Brands", Euromonitor International, September 18, 2013

China's Growing Middle Class Drives Demand For Higher-Quality Products

Premiumization, or the demand for better and more expensive variants of products, is growing in China, according to several market and consumer studies. Premiumization is a major factor driving the growth of major FMCG products in China, according to the latest retail and consumer confidence data from market research firm Nielsen. In 2012, for example, sales of premium products contributed as much as 55 percent of overall sales growth for products, such as toothpaste and biscuits, and almost 50 percent of sales of moisturizers and milk. China’s middle class is expanding, and along with it grows consumers’ spending power. Also, the country’s upper middle class is forecast to grow from 12 percent of the total urban population to more than 50 percent.

"China in transition: FMCG goes premium", Campaign Asia, September 09, 2013

Henkel Plans To Expand Personal Care Business In China's Smaller Cities

Henkel AG plans to expand its hair care and skincare business in China to include smaller cities outside Beijing and Shanghai. CEO Kasper Rorsted said the company will invest significantly to increase the share of its consumer business in the company’s total business in China from its current 20 percent to 30 percent. At present, adhesives account for 80 percent of the company’s revenue in China. Henkel aims to increase its revenue to €20 billion in 2016 from €16.5 billion in 2012, with half of sales coming from markets that include Latin America and Asia-Pacific region.

"Henkel to Expand Beauty Care Business in Smaller Chinese Cities", Businessweek, September 12, 2013

Tesco's China Setbacks Caused By Failure To Understand Local Consumers, Marketing Expert Says

Tesco was forced to scale down its business operations in China because it failed to understand the Chinese consumers, according to Warwick Business School professor of marketing and innovation Qing Wang. Also, Tesco failed to see that its clubcard loyalty marketing program is not suitable for the Chinese market, the marketing expert added. She said Tesco should have studied the cultural differences in China before investing there.

"'Tesco failed to understand the Chinese consumer'", Food Manufacture , September 03, 2013