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Cosmetics firm expands in China

By Si Tingting (China Daily)
Updated: 2009-09-07 08:06

"In addition to getting a larger share from that untapped 99 percent, I will also work to maintain the 1 percent I've got," Chen said.

Chen conceded it's difficult to build and maintain customer loyalty when two-thirds of women make "irrational" purchases.

"Therefore, we have to set up counters so that customers can reach us whenever they want to buy skin care products, either rationally or irrationally," he said.

Since China adds on charges of 10 percent for duty and 17 percent for value-added taxes on imported beauty products, many domestic consumers turn to duty-free shops in foreign countries or in Hong Kong.

But Chen said he is not worried whether the practice is affecting sales on the Chinese mainland.

"I'm happy, because Hong Kong sellers are helping by nurturing and educating a potential consumer base for me," he said.

Adding 'whitening'

Understanding that Chinese women favor cosmetics that produce "whiter" skin, Chen said Elizabeth Arden developed "whitening" skin care products for the market.

"We understand that if our brand wants to make a splash in the Chinese market, we have to invest more in research and development of whitening products," Chen said.

To that end, the company in 2007 in Asia launched its White Gloves line, which later became a popular seller in the Chinese market.

Related readings:  R&D cooks up 'feast of beauty'  L'Oreal grows with youngest markets  L'Oreal sales in China up 27.7% in 2008

Elizabeth Arden also is introducing anti-aging skin care products to China.

The company introduced its Prevage line of anti-aging facial products to China on Aug 18 to increase its market share in this fast-growing skin care sector.

Prevage products contain the anti-oxidant ingredient Idebenone, which is a bioengineered molecule that is 60 percent smaller than Co-Q10, which is naturally found in the human body and works to combat the damage caused by harmful free radicals. But the Co-Q10 molecule is too large to cross the barrier of human skin, researchers said.

"In essence, we are not aging, we are oxidizing - rusting in our suits of armor," said Joseph A. Lewis, a cosmetics research scientist who developed Idebenone.

In China, where many consumers believe natural ingredients such as herbs are of higher quality than synthetic ingredients, Lewis said it's a matter of letting consumers know that synthetic ingredients can be safer and more effective.

"The assumption that a natural molecule is always good is not exactly correct. There are a lot of very toxic natural molecules such as the venom in bee stings and snake bites," Lewis said.

Lewis said Idebenone can penetrate skin and mitigate the same kind of oxidative stress that can cause metal to rust or apple slices to turn brown.

"No other natural molecules have the same effect," he said.

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