The cosmetics market, the other victim of the downturn in the Chinese economy

A cosmetics seller waits for customers in Beijing on November 5, 2024. WANG ZHAO / AFP The French trade balance could suffer. Sales of cosmetic products are falling drastically in China. After falling 6.1% in July and August, sales fell a further 4.5% in September, according to data compiled by financial analysts at Jefferies. However, although far behind the European Union and the United States, China is the third destination for French exports of beauty products manufactured in France. Around 10% depended on it in 2023. One in four French lipsticks was, for example, exported to China, according to calculations by the Federation of Beauty Businesses (Febea). In 2023, French exports to China had already shown signs of weakness (+ 1.7%, to 1.99 billion euros, after an increase of 5% in 2022). But it will be much worse in 2024. Between January and the end of July, they decreased by 5%, according to Febea figures. Consumption of cosmetic products in China, whose sales had reached more than 55 billion euros in 2023, is now following a downward trend similar to that of the market for handbags, shoes and other luxury products. Shopping centers are emptying. However, large Western groups have established themselves on the Chinese market, precisely by opening stands in department stores, the driving forces of consumption in the metropolises. In addition, online sales, which account for 40% of Chinese sales of makeup, beauty products and perfumes, are an unrivaled springboard for local brands that compete with French ones. Kans imposed its Red BB cream, a sort of very covering foundation. Proya also happily took advantage of it. This Chinese manufacturer, listed on the Shanghai Stock Exchange, is particularly present on Douyin, the equivalent of TikTok in China, which 750 million people consult daily. He sells his various ranges directly there, including Proya creams and Uzero green tea-based treatments. Its sales jumped 38% over the first six months of its 2024 financial year, “mainly thanks to online sales”, he underlined in August, by press release. Its turnover is expected to exceed 10 billion yuan (1.45 billion euros) during its 2024 financial year. New regulations L’Oréal brands are bearing the brunt of this new situation. The group’s general director, Nicolas Hieronimus, recognized how the evolution of the Chinese market complicates his activity, during the publication of L’Oréal’s quarterly turnover on October 22. Its sales fell by 6.5% in North Asia in the third quarter of 2024. You have 29.3% of this article left to read. The rest is reserved for subscribers.



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