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China's Falling Cosmetics Sales Hit French Exports
Sales of cosmetics in China are plummeting, significantly affecting French exports and benefiting domestic Chinese brands.
French
France
HealthChinaLifestyleMarketLuxurySalesCosmetics
JefferiesFebeaL'orealKansProya
Nicolas Hieronimus
- What is the current state of cosmetics sales in China?
- Sales of cosmetics in China have drastically fallen, impacting French exports. After declines in July and August, September saw a further 4.5% drop, according to Jefferies analysts.
- How is the decline in cosmetics sales affecting French companies?
- The decline in Chinese cosmetics consumption mirrors trends in other luxury goods like handbags and shoes. This is significantly impacting Western brands that rely heavily on the Chinese market.
- How is the changing market impacting L'Oréal's performance in China?
- L'Oreal, a major player in the cosmetics industry, has seen a 6.5% drop in sales in North Asia during the third quarter of 2024, highlighting the challenges faced by Western brands in the changing Chinese market.
- Which Chinese companies are thriving amidst the decline in overall cosmetics sales?
- Chinese brands like Kans and Proya are thriving due to strong online sales, particularly on platforms like Douyin (the Chinese equivalent of TikTok). Their success is partly due to aggressive digital marketing strategies.
- What are the main factors contributing to the decline in French cosmetic exports to China?
- The decrease in French cosmetic exports to China is a consequence of several factors including the decline in overall consumption, the rise of successful domestic brands, and the dominance of online sales channels in China.