On average, Americans purchase three makeup products a year, French women buy two, and South Koreans get five or six. But China Daily reports that in China, where L’Oreal Group has just announced that its Tianmei plant in Yichang, Hubei province, will be the largest makeup production center in the Asia-Pacific area after two years of extensive renovations and upgrades, market penetration for cosmetics is incredibly low.
“In China, the figure is no more than 0.5 a year, which indicates a huge potential,” said Alexis Perakis-Valat, L’Oreal’s executive vice-president for Asia Pacific and L’Oreal China CEO. “That’s why we have heavily invested in China.” The plant’s renovation will cost $32.8 million, and production capacity will exceed 250 million pieces a year. It will export cosmetics to France, Southeast Asia, Japan, South Korea and New Zealand.
“The expansion of this plant is one of our most important strategic moves here in China, demonstrating our continued confidence in the long-term prospects for China and the Asia market, as well as our commitment to sustainable development,” Perakis-Valat said. He told China Daily that the Yichang plant is manufacturing products for six in-demand brands, including L’Oreal Paris, Maybelline, Yue-Sai and Garnier, plus CCB Paris and Agnes b, which have not yet been introduced to the Chinese market.
S&P Consulting reports that the total revenue of China’s makeup market surpassed 15 billion yuan in 2011, and that it is expected to double within the next few years. And Euromonitor International says that China’s cosmetics market has maintained 15.4 percent annual growth over the past five years, ahead of the global average of 4.7 percent. Additionally, the firm found that while the US makeup market doubled its skin-care sector, in makeup in China it comprises only one-quarter of all skin-care sales.
L’Oreal Paris is the top cosmetics brand in China, and Maybelline is the top makeup brand. L’Oreal operates 42 plants globally. The brand has a second factory in China, in Suzhou, Jiangsu province.
image credit: l’oreal china