The Business of Fashion
Agenda-setting intelligence, analysis and advice for the global fashion community.
Agenda-setting intelligence, analysis and advice for the global fashion community.
Chief executive Toshinobu Umetsu told China Daily that the company is “never shaken” in its determination to invest in China, that they plan to “beef up” investment, and that they are “fully confident” in the market.
The Chinese beauty market is the world’s second largest, poised to reach $96 billion by 2027, per The Business of Fashion State of Fashion: Beauty report with McKinsey. As well as its name-brand line, Shiseido owns brands such Clé de Peau Beauté, Nars and Drunk Elephant.
Years of sustained growth and ever-richer consumers have made the region attractive to global brands, but the Chinese retail market has its own quirks and the consumers their own qualms. Platforms such as Tmall and Xiaohongshu must also be mastered.
Shoppers have recently been turned off Japanese-owned brands following the release of treated radioactive water from the Fukushima plant, with a social media call to boycott targeting personal care brands in particular.
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In November, Shiseido reduced its forecast for core operating profit by 42 percent to ¥35 billion ($231 million) for 2023 reflecting the effects of the boycott. Revenue forecast was also cut by 2 percent.
China has also been a sore spot for Estée Lauder Companies, which has struggled with lower demand and inventory issues following the pandemic.
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How Mini Beauty Became Big Business
Once seen as a last-minute impulse purchase, bite-sized products are becoming a main attraction for prestige brands and retailers looking to widen their customer base.
According to an email viewed by The Business of Beauty, the company will be on hiatus while it establishes a sustainable path to return as a new company.
The surfing legend, a vocal opponent of chemical-based sun protection, is launching his own line of natural skincare products this week.
While light on obvious social stunts, the 2024 Met Gala still had its share of trending beauty moments this year.
TikTok has birthed beauty trends with very little staying power. Despite this reality, labels are increasingly using sweet treats like glazed donuts, jelly and gummy bears to sell their products to Gen-Z shoppers.