SK-II China slump: Consumer survey shows P&G expects luxury brands to recover by second half
Consumer goods giant Procter & Gamble (P&G) reported a 34% decline in SK-II sales in Greater China, including domestic travel retail, in the latest quarter ending December 2023.
The move is said to be due to safety concerns over Tokyo’s decision last year to release radioactively treated water into the Pacific Ocean. It also sparked a backlash, prompting Chinese consumers to boycott Japanese products, including beauty and personal care products.
But P&G’s latest consumer survey had more positive results.
“SK-II sentiment is improving…and as we continue to drive innovation and equity investment, we are truly relying on our most loyal and passionate user base to amplify that message.” And it’s working well. So we expect that impact to improve year-over-year, quarter-over-quarter.”P&G Chief Financial Officer Andre Schulten said:
Estée Lauder hints at ‘extremely aggressive plans’ to capture luxury opportunities in China
Fabrizio Frida, CEO of The Estée Lauder Companies, expressed his excitement about the opportunity in China’s luxury beauty market during the company’s latest earnings call.
He highlighted that the strong performance of luxury brands on Douyin during the Double 11 Mega Shopping Festival helped offset the decline on Tmall.
To capitalize on opportunities in China’s luxury market, the company plans to leverage some of its most iconic brands.
“La Mer, Tom Ford, Le Labo and Bobby Brown have extraordinarily aggressive plans.”Frieda declared.
‘Different’: Will Doc finally become a globally successful C-beauty brand?
You Shopple, China’s leading luxury beauty and retail group, recently announced that it has invested an undisclosed amount in luxury fragrance brand Document.
Since launching the brand in 2021, the brand has expanded from fragrance to body care and home care. We are also expanding into the jewelry and fashion fields.
Guo Lu, founder and CEO of USHOPAL, said:China has created brands that can enter the world stage. Document is one of the few Chinese brands that can compete with global high-end brands in these aspects. ”
Amorepacific FY2023: Growth in Japan, Americas and EMEA not enough to offset decline in China
Amorepacific’s latest full-year results show that growth in several markets, including the U.S., was not enough to offset weak performance in China, with its international operations in the red.
On January 30, the South Korean beauty conglomerate revealed a significant operating profit loss for its overseas business unit in its 2023 fiscal year report.
The company reported an operating loss of 43.2 billion won (US$32.5 million), with overall revenue down 6% to 1.39 trillion won (US$1.04 billion). The decline was primarily driven by China, where the company reported a “mid-20%” decline in revenue.
According to its latest Q4 report, its revenue in China fell by a whopping 40%.
Sa Sa sees ’tilt’ towards brick-and-mortar retail as online sales decline by 5.6% in Hong Kong and Macau
Beauty retail chain Sasa reported that while online sales in Hong Kong and Macau fell 5.6%, offline sales rose 44.3%, indicating the company is moving ahead with expansion of physical stores.
In its third-quarter financial report released on January 10, the company said the year-on-year decline in online sales reflected “minor fluctuations in offline sales due to the end of COVID-19 countermeasures. “I am doing so,” he said.
The company said store sales have recovered to 46.9% of pre-pandemic levels. This is despite the fact that it currently operates 36 fewer stores in the Hong Kong and Macau region, a decline of 30.5%.