Al Dubai luxury
  • Please enable News ticker from the theme option Panel to display Post

In China, the shift towards domestic brands has steadily gained momentum over the past few years.

Color Key, Judy Doll, and Flower Knows are among the brands generating the most hype among Chinese consumers.

“The reality is that the competition between international mass brands and local brands is fiercer than ever. And this is really a question mark for those who have big brands over there,” ​said Coty CEO Sue Nabi during the firm’s second quarter (Q2) earnings conference.

However, Nabi said that this phenomenon is currently contained mainly in the mass market segment, where Coty has a relatively small presence with brands such as Max Factor and Adidas.

“We’ve seen some very famous mass market brands closing in over there. This part of the business is very small at Coty.”

On the other hand, the C-beauty trend has yet to hit the local prestige and skin care market.

“Regarding prestige and skin care market, we don’t see this yet. There is a kind of cohabitation between local new players, specifically in the niche part of the market… I wouldn’t say that I see this phenomenon happening in this part [of the market],” ​said Nabi.

She observed that the trading down trend in China is pushing local consumers to seek out discounts and promotions, rather than move down to more affordable brands.

“The trading down in China in the case for many, many quarters are because of the ‘promotionality’ of the market. It’s not people moving from an expensive brand to the least expensive brand, its people looking for promotions to buy at a cheaper cost.”

Source link

Related Articles

Leave a Reply

Your email address will not be published. Required fields are marked *


Get our latest downloads and information first. Complete the form below to subscribe to our weekly newsletter.

100% secure your website.