Beauty Multinationals Lean On North America As China’s COVID Shutdowns Upset Growth
China’s “zero-COVID” policy and associated lockdowns were felt deeply in the 2022 first quarter by cosmetics giants in neighboring countries and global market leaders. Effects likely will be more pronounced in Q2.
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Expecting China to evolve into the largest prestige beauty market in the world, Coty believes it is well-positioned to benefit as one of the fastest-growing beauty firms in the country as consumers increasingly flock to fragrance. The firm’s Asia Pacific sales grew 9% in the fiscal third quarter, reported, to $158.1m.
Estee Lauder says a strict COVID-related lockdown in China prompted an adjustment in full-year sales projections to 7%-9% growth, about half of its was earlier estimate. Global fragrance sales jumped reported 28% in latest quarter to $579m and makeup sales increased 9% to $1.11bn.
L’Oréal SA says recovery in makeup sales helped drive overall first quarter sales up 13.5%, despite COVID-related lockdowns in China, the Ukraine invasion and continued drag on the US supply chain. The Clichy, France-based company remains optimistic about China, given beauty demand among Gen Zers, and bullish about global skin care as younger consumers flock to the category and brands they can trust.