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    Clarins bullish about China market

    By ZHENG YIRAN | China Daily | Updated: 2024-09-12 10:44
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    French skincare and cosmetics company Clarins is upbeat about the Chinese market, buoyed by its huge potential and increased healthcare awareness among consumers, a top company executive said.

    Olivier Courtin-Clarins, managing director of Clarins, said that compared to his previous visit to China in 2020, he has "observed significant advancements in the quality of Clarins' retail stores and brand boutiques".

    Acknowledging China's great market potential, Courtin-Clarins said: "Chinese consumers, especially women, pay great attention to product ingredients and efficacy. In addition, they often showcase the before-and-after effects on social media platforms using images and other methods.

    Olivier Courtin-Clarins

    "The digitalization of the Chinese market is exceptionally advanced, the best in the world and far ahead of other countries. We've found that in China, as much as 50 percent or even more of our sales are completed online."

    According to the National Bureau of Statistics, retail sales of cosmetics in China totaled 414.2 billion yuan ($58.2 billion) in 2023, up 5.1 percent year-on-year. Retail sales of skincare products stood at more than 200 billion yuan.

    China has become the second largest cosmetics consumption market in the world, with skincare products a strong driving force.

    According to a report by the Chinese Academy of Social Sciences, some 95 percent of polled consumers consider "safe, scientific ingredients of skincare products important", while 74.7 percent are concerned about "whether there is scientific experimental data to support the mentioned functions of the products."

    Wang Peng, an associate research fellow at the Beijing Academy of Social Sciences, said: "With consumers' healthcare awareness rising, they are paying increasing attention to the safety and efficacy of skincare products, with a focus on the ingredients and formula behind these."

    "In addition, with the development of the internet, information about the ingredients of skincare products is more transparent. Consumers can obtain a detailed list of ingredients and professional knowledge of skincare through various channels. The improvement of information transparency enables consumers to judge the quality of products better and pay more attention to the selection of ingredients."

    On Aug 30, Clarins launched the ninth generation of its bestseller — Double Serum concentrate — in the Chinese market, aiming to satisfy Chinese consumers' surging demand for skincare products. The product contains a giant provencal reed — a natural ingredient from France.

    Alan Zhong, executive vice-president of Chinese markets at Clarins, said: "We firmly believe that the purchasing power of China's cosmetics consumers, especially those in their 20s, 30s and 40s, is constantly growing.

    "The benign development of the market depends on constant innovation, rather than launching discounts. That is why we constantly innovate and bring out new products to the Chinese market."

    Clarins operates in 150 countries and regions. In China, it has over 200 retail stores in major cities and has also established two spa centers in Beijing and Shanghai, with more expansion plans in the pipeline.

    "Our market strategies align with the overall skincare trends in the Chinese market," Courtin-Clarins said.

    Wang said that overall, multinational cosmetics companies remain committed to China.

    The market potential and consumption power of the country is attracting MNCs to invest in China. Meanwhile, the Chinese government has been actively promoting the development and opening-up of the cosmetics industry, offering more business opportunities for companies.

    Bo Wenxi, vice-chairman of China Enterprise Capital Union and chief economist at wealth management firm IPG China, said: "Foreign cosmetics companies investing in China is a positive trend, which is beneficial to the development of the country's cosmetics industry."

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