French cosmetics group The Estee Lauder Companies Inc announced a price-cut plan in the Chinese mainland market on Wednesday as a form of “support” for the Chinese government’s import tariff reduction on Monday.
The import tariff cut will have a limited impact on retail prices but the company supports the change and believes the new policy will help boost domestic consumption in the future, a customer service staff of Estee Lauder who declined to be named told the Global Times on Wednesday.
“But there are no further details about how much the price cuts will be or when it will be carried out,” she said.
Estee Lauder has a group of well-known skin-care brands.
Another cosmetics giant, French company L’Oreal SA, also announced on Tuesday it would cut prices of its imported products in China, according to a statement the company sent to the Global Times on Wednesday.
“We welcome the Chinese government’s decision to lower custom duties on imported skin-care products from 5 percent to 2 percent,” L’Oreal’s statement said.
The Ministry of Finance (MOF) announced on Monday it would reduce import tariffs on certain consumer goods from June, as part of efforts to boost domestic consumption and stabilize economic growth.
From June 1, the import tariff rates on some consumer goods including skin-care products, suits, shoes and diapers will be reduced by an average of more than 50 percent, according to a statement on the MOF website.
Read more at ECNS.