The French L’Oreal groups bought China’s leading facial masks group Magic Holdings. A brilliant move, says retail analyst Ben Cavender in the China Daily, in a fast growing market segment.
The China Daily:
Facial masks are a fast-growing product in China’s beauty market with very promising prospects, said Ben Cavender, associate principal of the China Market Research Group.
Cavender said facial mask sales are growing more than 20 percent annually, compared with an average of 8 to 12 percent for the overall beauty market.
The acquisition will give L’Oreal a solid foothold in the facial mask segment as Magic Holdings controls about 26 percent of the market, he said…
A big global company can provide strong financial support in rebuilding a local brand, and thats hould pay off within a few years. But it is more important to buy the right brands, said Cavender.
Ben Cavender is a speaker at the China Speakers Bureau. Do you need him at your meeting or conference? Do get in touch or fill in our speakers’ request form.
Are foreign firms having a hard time in China? That is the question the China Weekly Hangout will address on Thursday 22 August, with as panelists China veteran-at-large Janet Carmosky, CEIBS business professor Richard Brubaker and international lawyer Nathan Kaiser. You can read our announcement here, or register directly at our event page here.
Not all foreign firms are doing as good as L’Oreal does in China. The China Weekly Hangout discussed on January 31 why foreign companies fail in China, with panelist Richard Brubaker of Collective Responsibility and Andrew Hupert, expert on conflict management in China. Moderation: Fons Tuinstra of the China Speakers Bureau. Including references to Apple, Mediamarkt, Foxconn and many others.