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Trade report Cosmetic Valley & China Beauty Expo Breaking through to China BW Confdential was the exclusive press partner of French industry cluster Cosmetic Valley’s delegation to the China Beauty Expo trade show, which took place in Shanghai from May 7-9. We took advantage of the opportunity to explore the opportunities and challenges for small-to-medium sized companies looking to build business in China by Raphaëlle Choël hina is just as appealing for small-to- Cmedium sized companies as it is for big multinationals. French beauty industry cluster Cosmetic Valley accompanied a delegation of 22 mid-sized French companies to trade show China Beauty Expo in Shanghai in May, all of whom have big ambitions for the country. BW Confdential was the exclusive press partner of distributor Lorcos manager Daly Zhou. Organic made in France—it is essential for them; they the French delegation to the show in Shanghai. skincare company Tulecos general manager don’t even ask to add the alcohol locally,” The size and growth of the market are the Wanpin Tu agrees: “The slowdown is relative, comments Everity (the company that owns the main reasons that these companies are looking especially compared to that in Europe and cosmetics and fragrance brand Roméa d’Améor) to develop their business in China, while the US.” founder Annie Vannier. others are targeting the market to counter the Many pointed out that there are market sluggishness of Europe and the US. And while niches to develop. These include the baby Market challenges there is much talk about slowing growth in products segment, natural and organic products However, while China may offer much China, most of the delegation’s companies said and environmentally friendly items. Some opportunity, moving into and developing the they don’t see this as a stumbling block. also highlighted the growth in the fragrance market is not that easy. The main objective “China’s economy is growing a little less, but category and the increasing popularity of French of those at the show was to fnd distribution it is still good and more consumers appreciate perfumes, in particular. “The trend for fragrance partners—a task that can be complicated. French products. The economy is stable and the is emerging and there is a real market for it. Companies attending said that it is diffcult to Chinese still have money to buy”, comments Distributors require the fragrance to be 100% gauge the number of distributors needed for Cosmetic Valley’s delegation to China • Everity markets the Roméa d’Améor • LV Cosmetics is a fragrance supplier for • Alambics du Cedre produces, sells and brand, which sells fragrances, nail polish men, women and home. formulates essential oils and hydrosols. and make-up. • SCD Lab is a cosmetics supplier which • Lac Biossentiel formulates, produces and • Laboratoires Téane markets four organic creates full-service product lines. sells essential oils and hydrosols. skincare products that target pregnant women, including stretch mark cream and frming milk. • France OEM is a prestige skincare supplier • Bio Secure markets skincare and bodycare. which creates serums for different skin types. • Indemne markets a dermocosmetic range • Babyderme Laboratories markets fve that includes items for damaged and sensitive • Bio Aromes is a fragrance, aromas and skincare products, including hand cream and skin, soap and shampoo. cosmetics manufacturer. cleansing gel. 78 September-October 2014 - N°19 - BW Confidential