Cosmetics giants release 2015 earnings

In 2015, the total annual retail sales for cosmetics in China surpassed 200 billion yuan for the first time. In 2014, China’s retail sales total for cosmetics was 182.5 billion yuan, increased by 10%. In spite of the slow growth in China’s cosmetics total retail sales, the sale of many foreign cosmetics companies in China is good.

For example, for Amore Pacific and Kao, because of the strong drive from the Chinese market, they got the outstanding sales achievements. Revenue of overseas markets of Amore Pacific group, with Chinese market as the main force, rose 44.4% in fiscal 2015, which has significantly increased compared to 22.5% in 2014.Sulwhasoo, Laneige, Mamonde, Innisfree, Etude House are the five main brands under Amore Pacific group in the Chinese market. The company said that it will continue to promote the five brands, while it also plans to introduce the two new brands, IOPE and Ryo, into the Chinese market.

Although Shiseido’s growth in Chinese market is the same as in 2015, its cosmetics segment (including Uara, ZA, PURE & MILD and so on) remained weak.The annual sales plunged by 25%. The luxury segment(including Shiseido, NARS, and Cléde Peau Beauté ) has a 31% increase in the revenue. In addition, the revenue of professional segment (including TSUBAKI and so on) was virtually flat. Speaking of the complexity of the Chinese market, Shiseido said that in addition to the Group’s own problems on management and operation, the fierce competition in the low-end market is the key reason.

L’Oréal group rose 19.7% in Asia-Pacific region sales in fiscal 2015, with a growth of 4.7% compared to that of 2014. The company declared that YSL, Kielh’s, Armani and Urban Decay had good performance and great business growth in China.

By December 31, American beauty brand Elizabeth Arden reduced its loss in the previous quarter, partly thanks to greatly increased turnover of the international market, including 18% net turnover growth in Greater China.

Estée Lauder has not disclosed revenue growth in China, but said due to increased marketing and advertising revenue, operating profit fell in the mainland China market,so did the Hong Kong and Thailand markets, resulting in a 0.4% drop in overall revenue in the Asia-Pacific market in the second quarter to $ 629.4 million, compared to $ 631.6 million of last year. Operating profit fell by 2.1% to $ 153.6 million, compared to $ 156.8 million of the same period last year.

Industry analysts said, in 2015, the contribution of the international cosmetic brands has limited effect on the mass-market brands. In 2015, Pehchaolin, Kans, Hanhoo and other local excellent brands are able to compete with the international brands in their retail total, market dynamic, advertising input and other aspects. Particularly,the sales of some local companies’ single product can be on a par with the sales of some international cosmetics companies’ single product in the Chinese market, which is a huge change and turning point.