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Global Consumer Buying Trends Stifle Juice Sales

March 5, 2013: 12:00 AM EST
Global juice sales grew two percent in 2012, but that’s a slip from the three percent growth experienced during the previous five years, according to researcher Euromonitor. Sales of juices dropped in three of the top ten global markets, including the United States (a five percent drop). High prices have suppressed  per-capita consumption significantly. Other negative factors: fierce competition from energy drinks and beverages offering “well-defined functionality”, and consumer concerns about sugar consumption. A more positive picture emerges in the developing countries, though growth is still “bumpy”. Per-capita purchases are down in key countries because of the availability of fresh juices. Nevertheless, growth opportunities abound for beverage manufacturers, Euromonitor says.
Michael Schaefer, "Juice in 2013: Building a Better Beverage", Euromonitor International, March 05, 2013, © Euromonitor International
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L’Oréal Posts Slower Sales Growth In China, Faces Increased Competition

March 1, 2013: 12:00 AM EST
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.
Xu Junqian , "L'Oreal scents success despite slowed growth", China Daily, March 01, 2013, © China Daily Information Co (CDIC)
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L'Oréal Retains Double-Digit Sales Growth In China Despite Economic Slowdown

February 28, 2013: 12:00 AM EST
L'Oréal reported sales in China grew 12.4 percent to 12.05 billion yuan, or $1.94 billion, in 2012 compared with 2011. Although the company posted its 12th consecutive year of double-digit sales growth, sales growth in 2012 slowed down by 5.6 percentage point from the previous year's 18 percent. China, which has been the Paris-based cosmetics company's third largest market by sales since 2010, saw its GDP growth slow down to 7.8 percent in 2012.
Fang Yunyu , "L’Oreal maintains growth in Chinese cosmetics market", Global Times , February 28, 2013, © The Global Times
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Tesco Plans To Launch Online Stores In China, Thailand

February 25, 2013: 12:00 AM EST
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.
Gemma Taylor , "Tesco to launch online offer in Thailand & China", Retail Gazette, February 25, 2013, © Retail Gazette
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Wipro Targets China's High-End Skincare Market With L.D. Waxson Buy

February 13, 2013: 12:00 AM EST
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.
Adi Narayan , "Bird’s Nest Cream to Drive Wipro’s China Growth: Corporate India", Bloomberg, February 13, 2013, © BLOOMBERG L.P.
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Sephora Opens Largest Store In China

January 31, 2013: 12:00 AM EST
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, © Business Wire
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Male Grooming Market Resumes Growth, Report Says

January 30, 2013: 12:00 AM EST
Growth has resumed in the global male grooming products market, with Asian regions showing the fastest expansion, according market research firm Kline & Company. Data from the company's report Male Grooming Products: Global Market Brief revealed the market grew 32 percent in India. Also, an increasing awareness among men of how they look and the benefits of looking good is helping drive the market growth. Social acceptance of male grooming, including the use of cosmetics, is fueling the market expansion in Japan and South Korea. In Europe, although market growth is slower, men's grooming products are "more sophisticated."
"Changing Patterns, BRIC Countries Leading Growth in Global Male Grooming", GCI Magazine, January 30, 2013, © Allured Business Media
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Male Consumers, Economic Rebound Help Drive Growth In China's Luxury Goods Market

January 21, 2013: 12:00 AM EST
Male consumers account for about 55 percent of the luxury goods market in China, according to brokerage firm CLSA. The trend helps drive a recovery in sales of luxury goods vendors, such as Burberry Group PLC and LVMH. Also, the market benefits from the gift-giving culture in China; however, luxury goods companies face potential sales swings because men are less likely to buy during economic slowdowns. Also, China’s economy rebounded to 7.9 percent growth in the fourth quarter following seven quarters of decline, helping push growth in the luxury goods market.
Yimou Lee and Farah Master, "China's metrosexual men revive luxury shopping", Reuters, January 21, 2013, © Thomson Reuters
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Johnson & Johnson Buys Shanghai-based Baby Supplies Vendor Elsker

January 16, 2013: 12:00 AM EST
Johnson & Johnson acquired Shanghai, China-based Elsker, a competitor in the baby supplies market. Established in 2006, Eslker grew from a 5 million yuan company to earn 300 million yuan in 2011. Elsker’s sales grew 70 percent year over year to about 500 million yuan in 2012. Johnson & Johnson’s purchase of Elsker was aimed at protecting its market share, according to some analysts.
Kang Xiaoxiao, "Johnson & Johnson acquires Elsker for 650 mln yuan", Morning Whistle, January 16, 2013, © 21st Century Media Group
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Procter & Gamble Supports China's Environment Education Program For Young People

January 7, 2013: 12:00 AM EST
Procter & Gamble announced its support for the Little Green Scouts, a program aimed at helping young people in China to study, observe, and get in touch with nature and the environment. Peking University primary school students performed the “Greenhouse Effect” drama during the program’s launch in Beijing. Started by the Chinese Society for Environmental Sciences, the Little Green Scouts program was integrated by the State Council into its action plan for the country’s science literacy in 2012.
Li Woke, "Scouting out a greener future", China Daily, January 07, 2013, © China Daily Information Co (CDIC)
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L’Oréal China Opens Human Resources Development Center In Shanghai

December 20, 2012: 12:00 AM EST
L’Oréal China opened an employee training and development center in Shanghai to help sustain its business growth in the country. The center is equipped with 20 classrooms that can host up to 600 students at the same time and combines training with education, and will focus on developing skills in cosmetics-related jobs. Designed to serve the company’s business divisions in China, the center is part of L’Oréal’s efforts to develop high-quality human resources.
Shi Jing , "L'Oreal opens local training facility", China Daily, December 20, 2012, © China Daily Information Co (CDIC)
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Reckitt Benckiser Bullish About India, Emerging Markets, CEO Says

December 6, 2012: 12:00 AM EST
Reckitt Benckiser plans to expand its business presence in India, where the company has been operating for more than 80 years, according to company chief executive officer Rakesh Kapoor. The CEO said India, as well as the other emerging markets, offers opportunities for growth and expansion. Despite the economic slowdown in India, consumer demand is forecast to keep growing, Kapoor said. Although both China and India are important markets for his company, Kapoor said that Reckitt Benckiser’s presence in India is more significant than in China where the company has been operating for only about 20 years.
Surojit Gupta, "Consumer mood in India is very strong: Reckitt Benckiser CEO", Times of India, December 06, 2012, © Bennett, Coleman & Co. Ltd.
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Procter & Gamble, Kimberly-Clark Expand Diaper Business In Asia

December 6, 2012: 12:00 AM EST
Procter & Gamble and Kimberly-Clark are expanding their operations in Asia's diaper market. P&G opened a manufacturing plant in China, which is part of the company's $1 billion investment plan for the country. Kimberly-Clark, after leaving the European diaper market behind, decided to expand its diaper manufacturing operations in Nanjing, China. Compared with Europe, where fertility rates are below 1.5 percent, India has more than 100 million children in the age range of 0–4 years, while China has just slightly fewer than 100 million. Low market penetration of baby care products is a significant hurdle for P&G and Kimberly-Clark; however, improving economic conditions in the region means will likely raise demand in the future.
"P&G And Kimberly-Clark Soaking Up Growth In Asia", Trefis, December 06, 2012, © Trefis
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Growth In Domestic Sales Shows China's Cosmetics Market Strong Despite Drop In Imports

November 24, 2012: 12:00 AM EST
Retail sales of cosmetics in China grew 16.5 percent to reach 107.7 billion yuan ($17.3 billion) in the first 10 months of 2012, according to data from the country’s National Bureau of Statistics. This shows that China’s cosmetics market is still growing despite the decline in cosmetics imports revealed by the China Luxury Report 2012. Also, the market’s leading international companies, such as Estee Lauder Companies Inc., Mary Kay Inc., and Shiseido Group, have announced significant expansion plans in the country. Euromonitor International Ltd.’s Beauty and Personal Care in China 2012 report, which looks at multinationals operating in the China cosmetics market, showed Estee Lauder has launched Osiao, a brand designed for Chinese consumers.
Yao Jing , "Cosmetics giants brush off any talk of slump in China", China Daily, November 24, 2012, © China Daily Information Co (CDIC)
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Emerging Markets To Account for 75 Percent Of Unilever's Revenue By 2020, CEO Says

November 22, 2012: 12:00 AM EST
Unilever PLC chief executive officer Paul Polman said emerging markets will account for 75 percent of the company’s revenue by 2020, up from the 55 percent in 2012. Polman, who visited India to open the company’s global enterprise support and information technology innovation center in the country, also said about 85 percent of Unilever’s growth comes from emerging markets. Unilever is constructing 27 or 28 factories worldwide, with most of them in emerging markets.
Mihir Dalal and Madhurima Nandy , "Emerging markets to generate 75% of Unilever sales by 2020", Livemint, November 22, 2012, © HT Media
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China's Animal Testing Requirement Keeps Cruelty-Free Cosmetics Firms Away

November 11, 2012: 12:00 AM EST
China’s policy requiring cosmetics to be tested on animals before they are allowed to be sold in the country prevents some cosmetics companies, which are against animal testing, from entering the market. The Body Shop, for example, has refrained from expanding in to China to avoid violating the company’s cruelty-free policies. In the Philippines, The Body Shop launched its Christmas line of skincare products for 2012.
Camille Erika R. Sarte, "Chinese dilemma", Business World, November 11, 2012, © BusinessWorld Publishing Corporation
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Slower Economy Means Lower Cosmetics Imports In China, Study Says

November 9, 2012: 12:00 AM EST
Cosmetics imports in China dropped 13 percent, pushed down by the economic slowdown in the country, according to the China Luxury Report 2012. Data from the General Administration of Customs of China revealed import value of cosmetics also declined 14 percent. While other luxury categories, such as yachts and high-end leather bags, posted impressive growth rates, imported cosmetics and fragrances posted compound annual growth rates of -19 percent and -28 percent, respectively, since 2006. Clinique announced price cuts for its skincare products, including Dramatically Different Moisturizing Lotion, its most popular product in China, to help drive sales.
Xu Junqian in Shanghai, "Tighter purses mean cosmetics market losing its gloss", China Daily European Edition, November 09, 2012, © China Daily Information Co (CDIC)
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Carcinogenic Compound Forms When Foods Are Fried, Roasted Or Baked

November 8, 2012: 12:00 AM EST
A report by a Hong Kong newspaper warns of a potentially carcinogenic compound found in some fried and baked foods sold in the former British colony. Scientists have shown  that high levels of the fatty acid ester form of 3-MCPD – produced when foods are cooked at high temperatures – affect the kidneys, central nervous system and male reproductive systems of lab rats. Hong Kong’s Centre for Food Safety said that while there is a potential danger for humans, the average daily intake of the chemical in people is unlikely to cause health problems. High levels of 3-MCPD have been found in biscuits, snacks and Chinese pastry. The ester is formed when foods containing fat and salt are processed at high temperatures in frying, deep frying, roasting and baking.
Emily Tsang , "Cancer link to foods cooked at high heat", South China Morning Post , November 08, 2012, © South China Morning Post Publishers Ltd
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Helped By Early Presence In China, Procter & Gamble Posts 19% Growth In The Country

October 29, 2012: 12:00 AM EST
Procter & Gamble chief financial officer Jon Moeller said P&G, which has a $3.5 billion to $4 billion business in China, grew its business in the country 16 percent in the last fiscal year. While P& and main rival Unilever are about the same size in Asia, P&G is more than twice the size of Unilever in China. Early investment, insight-driven marketing, and product innovation helped P&G expand its China business, according to Moeller. Significantly, P&G relocated the global headquarters of its beauty and baby-care businesses to Singapore, its Asian business hub. Also, P&G's introduction of skin-whitening products from Olay and SK-II has taken advantage of Asian mentality that fair skin is beautiful.
Anita Chang Beattie , "Early Foothold in China Pays Off", Advertising Age, October 29, 2012, © Crain Communications
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Walmart Expands Efforts To Improve Sustainability Of Its Supply Chain Worldwide

October 25, 2012: 12:00 AM EST
Walmart announced several initiatives aimed at making the retailer's supply chain in the United States, China, and around the world more sustainable.  Building on the company's sustainability goals set at the China Sustainability Summit in 2008, the initiatives include Walmart's pledge that by 2017, the company will buy 70 percent of the goods it sells in US stores from suppliers that use the Sustainability Index to evaluate and share the sustainability of their products. Also, in 2013, the retailer will use the index to guide the design of its private-brand products in the US. The Walmart Foundation will also donate $2 million to The Sustainability Consortium and help the organization in launching TSC in China.
"Walmart Announces New Commitments to Drive Sustainability Deeper into the Company’s Global Supply Chain", Walmart, October 25, 2012, © Wal-Mart Stores, Inc.
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Frightened By Food Contamination Incidents, Chinese Consumers Go Organic

October 23, 2012: 12:00 AM EST
The organic food sector in China is benefiting from consumer reaction to recent food safety problems, according to market researcher Mintel. Eighty percent of Chinese consumers say protecting themselves from food contamination is a major reason they are willing to pay more for organic foods and beverages. Fifty-six percent of Chinese consumers in metropolitan areas say they now spend more on organic foods, and the same number say they have bought organic fresh foods and drinks in the past year. Most popular organic foods purchased by Chinese consumers: fresh milk (37 percent), cooking oil (35 percent), pork (33 percent), beef (26 percent) and chicken (26 percent). Three-fourths of Chinese consumers do their organic shopping at supermarkets.
"Growth in Organic products in China as consumers adopt multiple self protection strategies", Oxygen Report, Mintel, October 23, 2012, © Mintel
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Unilever Partners With Save The Children To Help Reduce Mortality Rates Among Infants In China

October 22, 2012: 12:00 AM EST
Unilever signed a memorandum of understanding with Save the Children, China Development Research Foundation, and the Meishan government of China's Sichuan province to jointly implement projects for mountain village kindergartens in the province. The partnership marks the official launch of the Unilever's Early Childhood Development Program, which is part of Save the Children's Everyone project. The project seeks to ensure that all countries can achieve the United Nations Millennium Development Goal of cutting mortality rates among infants aged below five years by two-thirds by 2015. About 20,000 children and 30,000 parents in China are expected to benefit from the project.
Li Woke , "Joint attempt to save children", China Daily, October 22, 2012, © China Daily Information Co (CDIC)
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Tesco, Other Foreign Retailers Struggle In China's Retail Market

October 18, 2012: 12:00 AM EST
Foreign-owned retailers, including Tesco Plc and Wal-Mart Stores Inc., are slowing down their expansion plans in China. Tesco is closing down stores and opening new ones more slowly as Chinese consumers prefer to shop in local stores and as the country's economy slows down. Wal-Mart is also adopting a more cautious approach to expanding in China's $560 billion grocery industry. Local retail chains, such as Sun-Art, Yonghui Superstores Co., and China Resources Enterprise Ltd., are performing strongly in smaller cities, making it more difficult for foreign retailers to compete in tiers 2 and 3 cities.
"Tesco Stumbles With Wal-Mart as China Shoppers Buy Local", Bloomberg , October 18, 2012, © BLOOMBERG L.P.
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“Virtual” Grocery Shopping Takes Off In China

October 16, 2012: 12:00 AM EST
A Chinese retailer has launched 1,000 “virtual” 3-D supermarkets at “iconic landmark locations” in the metropolitan areas of Shanghai, Beijing, Guangzhou and Shenzhen. Items at these “stores” can be purchased online using Yihaodian’s Virtual Store App; the purchases are then delivered to homes later in the day. Each virtual store offers as many as 1,000 items and offers promotional discount coupons and gift vouchers. Similar program are being tested in the U.K. and the U.S. Tesco created an online program for its HomePlus brand and offers virtual shopping in subway stations in South Korea.
"1,000 ‘Virtual Supermarkets’ To Open In China", Inquisitr, October 16, 2012, © Inquisitr Ltd.
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Software Will Help Brands Integrate Advertising Rating Systems In China

October 9, 2012: 12:00 AM EST
Chinese third party technology company Miaozhen Systems announced China's first third-party mobile advertising measurement software development kits (SDK) at a recent conference in Shanghai. The software will help advertisers integrate mGRP with iGRP systems. Internet gross rating point (iGRP) is the metric used to measure the success of online videos and banners, and is compared with traditional TV and other multi-screen media. Big brands in China are also using mobile GRP (mGRP) systems and the trend is expected to induce advertisers to integrate their mobile advertising into online desktop campaigns. Proctor & Gamble, YUM!, L'Oreal, Coca-Cola, Nivea and other Chinese and international brands are participating in the movement, according to Miaozhen.
"China's Mobile GRP Movement Initiated By Big Brands", News release, Miaozhen Systems, October 09, 2012, © Miaozhen Systems
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Asia Drives Growth In Worldwide Men's Skincare Market, Report Says

October 6, 2012: 12:00 AM EST
The Asia-Pacific region accounted for almost 60 percent of worldwide sales of men's skincare products, a rapidly expanding segment of the $33 billion male grooming industry, according to Euromonitor International. Data shows men in China, Japan, and South Korea are the region's biggest spenders on skincare products. Also, men in Asia and Brazil are spending more on skin care, and are likely to overtake the United States as the world's largest market in three years. Euromonitor also reported that the global market for male grooming products grew at an average annual rate of 6.0 percent for the past five years, leaving plenty of room for growth.
"Asia drives sales of men's skincare products", AFP/ Google, October 06, 2012, © AFP/ Google
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Mintel Reports More Men Are Buying Perfume In China

October 4, 2012: 12:00 AM EST
China's market for men's fragrance grew 20 percent in 2008–2011, according to Mintel. In contrast, the women's perfume market grew 10 percent during the same period, indicating more growth potential in the men's category. Data also revealed an increasing number of male consumers are switching to prestige fragrance brands, which posted 19 percent growth in sales to RMB 422 million in 2011. China's fragrance market grew 32 percent during the same period, going up in value from RMB 3.2 billion to RMB 4.2 billion. Mintel's research showed 60 percent of consumers in urban areas use fragrance to "become more attractive and well-groomed." Also, 46 percent said they purchase perfumes and fragrances from a specialist perfume shop; 37 percent said they buy at a department store; and 35 percent said they purchase online.
"The sweet smell of success for men’s fragrance category in China", Mintel Oxygen Reports, October 04, 2012, © Mintel Group Ltd
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Report Forecasts More Growth For China's Beauty And Personal Care Market

October 3, 2012: 12:00 AM EST
China's beauty and personal care market is forecast to post strong growth rates in the next four years, according to Euromonitor International. Data shows that consumers are expected to increase their purchases of beauty products, driven by promotions by industry leaders and a strong economy. Also, the market for products designed for babies and children is expected to expand, due to a baby boom expected for 2012, while sales of anti-aging skin products are likely to keep growing, driven by purchases by older age groups. In 2011, the rapid expansion of online sales caused a decline in sales through conventional retail channels. According to the report, online sales of beauty and personal care products grew 84 percent. For example, Shiseido China Co. Ltd. began selling its products on Tmall.com and other online platforms.
Wang Zhuoqiong, "Beauty, personal care market to keep growing", China Daily, October 03, 2012, © China Daily Information Co (CDIC)
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Foreign Companies Still Lead China's Beauty And Personal Care Market, Report Says

October 3, 2012: 12:00 AM EST
Multinational corporations continue to lead the beauty and personal care market in China, according to a report by Euromonitor International. Data showed the top 5 companies in the market in 2011 were Procter & Gamble, L'Oréal, Shiseido Co Ltd, and Amway Corp. The report also revealed that the market has continued its strong growth, driven by increasing consumer demand and disposable income levels. MNCs also outperformed local competitors in terms of marketing and product development. For example, Unilever opened its $47.5 million laundry and toothpaste manufacturing facility in Meishan, Sichuan province.
Wang Zhuoqiong and Li Woke , "International brands still ranked on top", China Daily, October 03, 2012, © China Daily Information Co (CDIC)
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Estee Lauder's Price-Cutting Move Puts Marketers' Pricing Strategies In China Under Scrutiny

September 28, 2012: 12:00 AM EST
Estee Lauder's reduction of the prices of its Clinique cosmetics in China attracted attention into foreign companies' pricing strategies for their products in China and overseas markets. Estee Lauder said the price cut was part of efforts to narrow the price gap between China and other markets, and to promote local consumption and improve its ability to compete in the market. The rise of the Internet and how it provides consumers with access to information have limited marketers' ability to implement discriminative pricing.
Shen Lei , "Unraveling the value mystique", China Daily, September 28, 2012, © China Daily Information Co (CDIC)
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Men Have Lots Of Options In Fighting Skin Aging

September 27, 2012: 12:00 AM EST
There are many anti-aging treatments and products designed for men’s skin, which ages differently from how women’s skin does. Men’s skin is affected by age, lifestyle, environment, food, and overall health, according to Shiseido senior training manager, Mandy Leung. Although men’s skin ages more slowly than women’s skin, when it begins aging, it does so at a much faster rate and with more visible signs, such as lines and wrinkles, oversized pores, and loss of firmness. Also, men have oilier skin, which continues producing oil longer than women’s skin. For men with tired or dull skin, products that cleanse and hydrate properly are recommended, while products that reduce the impact of shaving are also helpful.
Euan McKirdy, "Damage control", South China Morning Post, September 27, 2012, © South China Morning Post Publishers Ltd.
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Singapore Bun Maker Plans Major Expansion In China

September 26, 2012: 12:00 AM EST
A Singapore company whose plan 12 years ago was to create a “bread culture” in Asia with a variety of exotic baked goods has announced plans to double the number of retail bakeries in China to 500 – and globally to 1,000 – by 2014. BreadTalk also said it has begun implementing a new look and feel for its stores, offering new bun flavors, and adding variations to its famous pork floss (dried meat covered) buns. The company now sells chicken buns, tornado-shaped yam buns, a chocolate-filled “Hello Panda” bun, and “numbingly hot” floss buns. BreadTalk also plans to launch an artisan bread line and open an “Icing Room”, where customers get to decorate their own cakes, next year in China.
Grace Ng , "BreadTalk set to get them talking all over China", The Straits Times (Singapore), September 26, 2012, © Singapore Press Holdings Ltd. Co.
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Estée Lauder Creates Osiao Brand For China

September 25, 2012: 12:00 AM EST
Estée Lauder Companies created the Osiao cosmetics brand for the Chinese market. The company claims the new skincare brand is designed for the tastes of Asian consumers, using Estée Lauder’s research and development capabilities. Estée Lauder said it plans to initially sell Osiao products, developed at a company R&D institute in Shanghai and manufactured in Japan, in China. Osiao is part of Estée Lauder’s long-term strategy in China; however, some analysts said the company might find it harder to introduce a new brand in the country than an existing one.
NATASHA SINGER, "Estée Lauder creates a brand for China", The New York Times, September 25, 2012, © The New York Times Company
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Skin Care, Online Retail, BRIC Markets Will Drive Growth In Men's Grooming Market, Euromonitor Says

September 19, 2012: 12:00 AM EST
Men's grooming products accounted for 8 percent of the world's $33 billion beauty and personal care market in 2011, according to Euromonitor Nicole Tyrimou's presentation at the 2012 Beyond Beauty event in Paris. Tyrimou also said that skin care, the BRIC or Brazil, Russia, India, and China markets, and online retail are key to "unlocking" the men's grooming market. For example, the men's toiletries segment is forecast to grow over $3 billion in 2011–2016, while the BRIC markets will drive growth in the men's grooming market.
Katie Nichol, "Euromonitor reveals keys to unlocking lucrative men’s grooming market", Cosmetics Design, September 19, 2012, © William Reed Business Media SAS
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Reckitt Benckiser Expands Digital Marketing In China

September 18, 2012: 12:00 AM EST
Reckitt Benckiser is expanding its digital marketing in China. In April 2012, the company appointed former Volkswagen executive Jacob Tang as head of its digital marketing operations. Also, the company has created online campaigns for the Durex brand of condoms, using social media sites in the country. Reckitt Benckiser plans to increase the portion of its digital marketing budget going to mobile marketing in 2013, with planned initiatives including tapping local mobile ad networks.
Adaline Lau , "Reckitt Benckiser Shares Digital Plans for China", ClickZ, September 18, 2012, © Incisive Interactive Marketing LLC
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Unilever Plans To Build Environment-Friendly Factory In China

September 15, 2012: 12:00 AM EST
Unilever announced its plan to build an environment-friendly manufacturing plant in Meishan, in China's Sichuan province. The planned factory complex will have an area of about 27 hectares, with Unilever investing $47.38 million in the first phase of detergent production, which is expected to go up to 200,000 metric tons each year. Unilever CEO said the proposed plan highlights the company's confidence in China despite the current economic slowdown in the country.
"Unilever to build new production base", China Daily, September 15, 2012, © China Daily Information Co (CDIC)
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Unilever Agrees To Support Save The Children's Global Health Initiative

September 14, 2012: 12:00 AM EST
The Unilever Foundation partnered with Save the Children to support the international nonprofit group's Every One initiative, which aims to eliminate mortality among children and mothers in China, Nigeria, Bangladesh, and Kenya. The partner organizations also agreed to cooperate with China Development Research Foundation, and signed a memorandum of cooperation with the Meishan Municipal Government of China's Sichuan province. As part of the partnership deal, the organizations will work to improve access to health workers and life-saving vaccines, while ensuring children in need receive health and nutrition services.
"Unilever and Save the Children Launch Global Partnership", Business Wire, September 14, 2012, © Unilever
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Unilever Sees Little Impact Of China Slowdown On Sales Growth

September 13, 2012: 12:00 AM EST
Unilever PLC president for North Asia, Alan Jope, said the economic slowdown in China will have a slight impact on the company's sales growth. Jope added that his company is less affected by "fluctuations in consumer sentiment" than sellers of higher-end goods are. Unlike producers of raw materials, such as iron ore, and makers of luxury brands that have reported slowing sales in China, manufacturers of basic consumer goods are expected to perform better. Jope also said China's market for luxury facial skin care products, for example, started slowing down about three or four months ago, while sales of affordable face creams have continued to post strong growth.
Aaron Back , "INTERVIEW: Unilever Only Sees Slight Impact From China Slowdown", Wall Street Journal, September 13, 2012, © Dow Jones & Company, Inc.
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L’Oréal Targets Bigger Share Of Beauty Market In Indonesia

September 6, 2012: 12:00 AM EST
L’Oréal aims to increase its share of Indonesia’s beauty products market from its current 10 percent to 15 percent by expanding sales of its products in beauty salons across the country. As part of its sales expansion efforts, the company helps salons develop their technical skills and salon management capabilities. L’Oréal growth in Indonesia outpaces the company’s global growth. Growing demand has convinced the company to increase its investments in the country, where consumer confidence increased for the fourth consecutive quarter in April–June, according to Nielsen.
Francezka Nangoy , "L’Oreal Eyes Boost in Market Share, Output", Jakarta Globe, September 06, 2012, © Jakarta Globe
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Chinese Consumers Are An Evolving -- And Complex -- Target For Marketers

September 5, 2012: 12:00 AM EST
Marketers eager to tap into China’s huge – 1.3 billion potential customers – consumer market need to get a better understanding of the country’s economic and cultural complexities, says Chris Davis of Campaign Asia. Consumer demographics, buying patterns and product preferences vary by region and by major city, and each of these is at a different stage of economic development. But there are some key facts: Chinese shoppers look for prestigious brands; women tend to control the family’s purse strings; Internet shopping, product and price comparisons, and buying are surging; and senior citizens form a sizeable purchasing segment and do considerable shopping for their grandchildren. A crucial insight: China is becoming more modern and international in its outlook, but not “Western”.
Chris Davis , "Understanding the evolving Chinese consumer", Campaign Asia, September 05, 2012, © Haymarket Media Ltd
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Tesco Plans To Close Four Supermarkets, Realigns Operations In China

August 24, 2012: 12:00 AM EST
Tesco plans to shut down four supermarkets in China as part of its strategic adjustment in the country. Industry analysts described the closure as a response to the slowdown in China’s retail market and as a sign that foreign retailers’ business model is not suited to the country’s less developed urban centers. In 2011, retailers’ labor costs increased 26 percent and rents rose 10 percent, according to business news site jrj.com, citing an industry report issued jointly by China Chain Store & Franchise Association and Deloitte & Touche.
Zhang Ye , "Tesco to shut down four stores in smaller cities", Global Times, August 24, 2012, © The Global Times
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Foreign Fast Food Outlets Need To Work Harder To Interest Urban Chinese In Breakfast

August 17, 2012: 12:00 AM EST
Market research from Mintel finds an untapped fast food breakfast market in China. Foreign fast food outlets need to work on such key factors as flavor and affordability to boost Chinese interest in fast food breakfasts. Currently, only 21 percent of Chinese city dwellers eat breakfast in fast food restaurants, though 75 percent eat lunch there. Foreign fast food outlets continue to grow – from 36,000 in 2006 to more than 50,000 now – but to break the breakfast barrier they may need to add more local items to the menu.
"Breakfast key to growth of foreign fast food market in China, reports Mintel", Press release, Mintel, August 17, 2012, © Mintel
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Johnson & Johnson Looks At Acquiring Baby-Care Vendor In China

August 9, 2012: 12:00 AM EST
Johnson & Johnson is reportedly considering buying baby-care products company Shanghai Elsker, which could help expand its presence in China’s fast growing baby-care market. Considering the rapid rate of expansion of China’s baby-care market, it makes a lot of sense for Johnson & Johnson to acquire Shanghai Elsker. Founded in 2006, Shanghai Elsker manufactures baby-care products and imports popular brands from Denmark and sells them in China.
"Johnson & Johnson Mulls Acquisition of Baby Product Manufacturer in China", Trefis, August 09, 2012, © Trefis
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Foreign Consumer Goods Companies Face Stiffer Competition From Local Counterparts In China

August 5, 2012: 12:00 AM EST
Foreign consumer goods companies are faced with growing competition from local manufacturers in China, where the market for beauty and personal care products is forecast to grow 12 percent to 203 billion yuan ($32 billion) in 2012, and home care products to rise 11 percent to 78 billion yuan ($12.2 billion), according to Euromonitor. Local brands are closing the so-called quality gap with products manufactured by foreign companies. For example, in 2011, Procter & Gamble’s share in the local toothpaste market declined from 20.8 percent to 19.7 percent, while a Chinese herbal toothpaste’s share of the market rose to 8.8 percent from 1.1 percent five years ago. Unilever’s Zhonghua brand’s market share fell from 12.0 percent to 9.9 percent. Hengan International Group Co. grabbed a 10.6 percent share of the market for tissues and hygiene products, taking the lead from Procter & Gamble, which accounted for 10.5 percent of the market.
LAURIE BURKITT and EMILY GLAZER, "In China, Some Imports Get a Local Run for the Money", Wall Street Journal, August 05, 2012, © Dow Jones & Company, Inc
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Reckitt Benckiser Focuses More On Emerging BRIC Markets

August 4, 2012: 12:00 AM EST
Reckitt Benckiser CEO Rakesh Kapoor said his company plans to expand more aggressively in the emerging markets of Brazil, Russian, India, and China to compensate for the slow growth in European and North American markets. Reckitt Benckiser, which reported its first-half revenue rose 2 percent in 2012, made India its regional headquarters for Southeast Asia after acquiring India-based Paras Pharmaceuticals.
Ratna Bhushan, "Reckitt Benckiser to move quicker in markets like India", Economic Times, August 04, 2012, © Bennett, Coleman & Co. Ltd
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81 Percent Of Urban Consumers In China Prefer Natural Hair-Care Products

August 2, 2012: 12:00 AM EST
Eighty-one percent of urban Chinese consumers said they prefer to purchase all-natural hair-care products, according to Mintel. Results of the survey also show that 10 percent of respondents consider the inclusion of natural ingredients as the most important factor to consider when buying hair-care products. In 2011, almost 64 percent of hair-care products in China claimed to be natural, compared with the global market where 50 percent of products came with similar claims. Among middle-class consumers, 87 percent said they prefer premium products and services over their standard versions; however, 61 percent said they believe more expensive products do not automatically mean better performance than the lower-priced products.
"81% of urban Chinese hair care consumers prefer to purchase all-natural products, reports Mintel", Mintel, August 02, 2012, © Mintel Group Ltd.
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Unilever Seeks To Triple Online Sales In China

July 23, 2012: 12:00 AM EST
Unilever vice president for digital marketing and ecommerce for North Asia, Dorcas Lau, said she aims to more than triple her company’s online sales in China in 2012. Unilever is aware of the size and growth potential of China’s online market, with 22 percent of white-collar female Internet users buying products online. More than 500 million Internet users in China mean the country’s ecommerce market will become the largest in the world by 2013. Unilever has expanded its digital media spending 11-fold in China in the past four years, Lau said.
Anita Chang Beattie , "Dorcas Lau Looks to Triple Unilever China's E-Commerce Sales", Advertising Age, July 23, 2012, © Crain Communications
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L'Oréal Survey Shows Most Women In China Believe Makeup Helps Improve Personal Charisma

June 25, 2012: 11:47 PM EST
About 93 percent of consumers in China said that makeup helps improve personal charisma, while 83 percent agreed that makeup boosts self-confidence, according to an online survey conducted by L'Oréal. Results of the survey also show that about 79 percent of male respondents believe makeup can increase attraction from the opposite sex. Other findings indicate that women are aware of the importance of makeup, with 80 percent of women respondents saying they use makeup on a daily basis, and 37 percent indicating they put on makeup 3–4 times a week.
Li Fangfang , "L'Oreal gives makeup a makeover in China", China Daily, June 25, 2012, © China Daily Information Co (CDIC)
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Procter & Gamble's Social Advocacy Efforts Receive Recognition

June 6, 2012: 03:33 AM EST
Procter & Gamble received the Cause Marketing Golden Halo Award during the 2012 Cause Marketing Forum conference in Chicago, Illinois. The award recognizes the company's various corporate responsibility efforts, including the Children's Safe Drinking Water program, maternal vaccinations, and educational access. China's The Economic Observer newspaper included P&G on its list of the 30 Most Respected Enterprises in China for its "Socially Responsible Enterprises" efforts.
"P&G Gains Recognition For Cause Marketing, Social Responsibility, Supplier Excellence", Procter & Gamble, June 06, 2012, © Procter & Gamble
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Unilever, Procter & Gamble Announce Sustainability Updates

June 4, 2012: 10:20 PM EST
Consumer goods companies Unilever and Procter & Gamble released updates on their respective sustainability programs. Unilever installed waste-water recycling facilities, which can process 1,300 tons of reclaimed water each day, and a biomass furnace designed to help reduce greenhouse gas emissions by 15,000 tons each year at its Hefei industrial park in Central China. For its part, Procter & Gamble announced it aims to achieve 30 percent renewable energy use, replace 25 percent of petroleum-derived raw materials with renewable or recycled materials, reduce packaging by 20 percent per consumer use, and to reduce disposed-of waste to less than 0.5 percent by the end of 2020.
Li Woke in Hefei , "Unilever and P&G in drive to develop sustainable production", China Daily, June 04, 2012, © China Daily Information Co (CDIC)
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