CosmoBiz Magazine September 2014 - Page 63

Beauty Industry News ASIA A merican nutrition company, Herbalife, announced that it will be expanding its manufacturing capabilities in China. The company currently has a manufacturing facility in the city of Suzhou and an extraction plant for its botanical products in Changsha. The new location will likely be in a facility in Jianging, where the company has identified a recently built factory that would suit their needs. The chief operating officer of Herbalife, Richard Goudis, stated in a press release, “We are experiencing steady and sustainable growth in China and it is important that our infrastructure is robust enough to meet the demand we are seeing now, and expect to see in the future. We have been impressed with the support from officials in Jiangning, and we are extremely encouraged by the positive discussions we have had with senior provincial, state, city and park officials, who are excited for us to increase our investments and presence in the region.” T he Chinese government has begun to consider adapting its policies on animal testing. Current laws require animal testing for cosmetic products sold within the country, an issue which has made many outside companies wary of entering the market. The proposal does not end animal testing altogether, but it does suggest that further tightening of restrictions will be considered. Change in animal testing laws would mean good news for companies looking to start trade within China’s booming cosmetics market. Currently, many companies have avoided China out of either an attempt to refrain from alienating consumers or in response to pressure from those same consumers. S wiss cosmetic company, Induchem, opened a new branch office in Singapore this past July. The company, who has recently created a new range of cosmetic “spheres” and Redensyl, a hair growth treatment, has been expanding rapidly. The opening of an Asian office is considered as Peter Schweikert, the CEO, stated, “another significant step in the development of our business, and will reinforce our customer and partner intimacy model.” Schweikert also states that the company has a close relationship with its Asian customers, and the decision to open the Singapore branch was in part an effort to, “increase our level of support to our Asian distributers and key accounts.” M asahiko Uatani was recently appointed to become the new CEO and president of Japanese beauty company Shiseido. Uatani has started vocalizing his goals for the company, “My mission is to realise Shiseido’s further innovation and growth for the next stage by reinforcing, accelerating and developing management reforms which were started by Mr. Maeda in order to revitalise Shiseido.” His hopes for the company extend far into the future; he’s been reported as saying, “I will stake my life on this job to have wonderful Shiseido become a leading brand as one of the greatest global companies for the next 50, and even 100 years. C osmetic companies in Korea are hopeful for a new trade agreement with China by the end of the year. The growing popularity of Korean culture has sparked an increase in tourism from China to South Korea. In 2013 4.3 million Chinese citizens visited their neighbor to the east; cosmetics proved to be one of the most frequent purchases. Currently, Korean companies face a 130% tariff when importing to China. The two countries have a close trade relationship; China is Korea’s largest trading partner, while the Korean market is the third largest for Chinese exports. If the trade agreement goes through, it would mean a dynamic shift in the trade potential. In response to the high numbers of Chinese tourists and their demand for cosmetics, Lotte Duty Free expanded its store in Seoul by 1,500sqm. Sales are reported to have gone up 70% in the first half of this year as compared to 2013. 63