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.
Guangzhou, one of southern China’s premier metropolises, is building a 10-square-kilometre “Beauty and Healthcare Industrial Park” to boost production for China’s booming beauty market, according to a report in The South China Morning Post.
The park is expected to generate 8.6 billion yuan ($1.3 billion) worth of cosmetics and skincare products annually and will set up more local brands to compete with international giants in a beauty market valued at $52 billion last year.
Strengthening the “beauty economy” has become a key goal in recent years for Guangzhou, where the sector is expected to generate 50 billion yuan ($7.6 billion) by 2023 and 100 billion yuan ($15.2 billion) by 2025, according to the Baiyun District Science, Industry, Commerce and Information Technology Bureau.
Construction on the new park is underway, and there’s no word on when it’s due to officially open for business.
With consumers tightening their belts in China, the battle between global fast fashion brands and local high street giants has intensified.
Investors are bracing for a steep slowdown in luxury sales when luxury companies report their first quarter results, reflecting lacklustre Chinese demand.
The French beauty giant’s two latest deals are part of a wider M&A push by global players to capture a larger slice of the China market, targeting buzzy high-end brands that offer products with distinctive Chinese elements.
Post-Covid spend by US tourists in Europe has surged past 2019 levels. Chinese travellers, by contrast, have largely favoured domestic and regional destinations like Hong Kong, Singapore and Japan.