Wal-Mart Slims Down Management Ranks Of China Unit

Wal-Mart Stores Inc. said it is eliminating almost 30 director and midlevel management jobs in China as part of the retailer's efforts to reduce costs and improve declining sales in the country. Retail sales in China grew 12 percent in the first 10 months of 2014, compared with 13 percent in the previous year, according to the National Bureau of Statistics. Wal-Mart, which has about 400 stores in the country, reported sales dropped 0.8 percent in the third quarter of 2014.

"Wal-Mart Stores Cuts Nearly 30 Directors and Midlevel Managers in China", Wall Street Journal, November 26, 2014

Wal-Mart's July Quarter Sales Hurt By China's Austerity Drive

Wal-Mart Stores Inc. said same-store sales in China decreased 1.6 percent for the quarter ending July 2014, compared with the same period in 2013. Wal-Mart Asia president Scott Price said the decline in sales was caused by lower sales of gift cards, moon cakes, and other products commonly used in gift giving in the country. China's campaign against lavish spending is discouraging government and business leaders from buying expensive goods. Also, growing competition from local retailers and e-commerce companies is also hurting Wal-Mart's revenue in the country.

"Wal-Mart Feels Pinch From China Austerity Campaign", Wall Street Journal, November 09, 2014

Beauty Brands Claim China's Cosmetics Market Still Going Strong

The world's leading cosmetics brands, such as Estee Lauder, Mary Kay, and Shiseido, remain focused on their expansion plans in China despite reports of a market slowdown in the country. Retail sales in China's cosmetics market grew 16.5 percent to 107.7 billion yuan, or $17.3 billion, in the first 10 months of 2014, compared with the same period in 2013. Estee Lauder, which sells 12 of its 28 cosmetics brands in the country, aims to remain the largest foreign beauty brand by launching its local brand Osiao. Local beauty companies, however, are growing their share of the market and driving up competition in the process.

"Cosmetics industry brushes off talk of slump in China", Cosmetics Design , November 04, 2014

Danone Acquires Stake In Chinese Baby Formula Maker

French yogurt maker Danone has paid $550 million for a 25 percent stake in Chinese baby formula producer Yashili International Holdings. According to analysts, the investment in Yashili strengthens Danone's association with Yashili's largest shareholder, China Mengniu Dairy Co Ltd., China’s largest dairy firm, whose stake in Yashili will be diluted as a result. The investment also reduces the chance of Danone pursuing other large acquisitions, such as the rumored takeover of Mead Johnson Nutrition Group, which also manufactures baby formula.

"Danone bolsters China presence with $550 mln baby milk deal", Reuters, October 31, 2014

Demand For Men's Skincare Products Drives Overall Market Growth In China

China's market for men's skincare products, currently valued at $974 million, is forecast to grow to $1.2 billion by the end of 2014 and $2.5 billion by 2019. Although the women's skincare segment, estimated to be worth $107.6 billion in 2013, is more than 30 times larger than the men's market, it is expanding only at a CAGR of 4.8 percent. In contrast, the men's market is growing at a 9.4 percent CAGR. Data revealed the men's facial products market, for example, grew at a CAGR of 20.1 percent from 2009 to 2014. For male consumers in China, the most popular products are shampoo, facial cleansers, and lotions.

"China skin care market driven by male beauty products", Companies And Markets, November 27, 2014

Amore Pacific's Laneige, Two Other Brands, Tops In Consumer Recall In China, Study Shows

Amore Pacific's Laneige brand is the most popular Korean cosmetics brand  among consumers in China, according to the Korea Trade-Investment Promotion Agency.  Results of a consumer survey covering 10 major cities in the country showed 12.2 percent of 2,194 respondents chose Laneige. Two other brands owned by Amore Pacific, Mamonde and Sulwhasoo, were ranked fourth and fifth, respectively. Survey results also revealed six out of the 10 most recognized Korean brands were cosmetics brands.

"Laneige Cosmetics Most Recognizable Korean Brand in China", The Chosun Ilbo, November 26, 2014