Chinese consumers are changing their spending habits in the luxury goods market, turning more to premium beauty products instead of buying handbags and luxury fashion brand items. Amid a slowing economy and consumer confidence that has yet to fully recover, major beauty companies like Estée Lauder and L'Oréal reported strong growth in high-end product sales in China this year, while luxury fashion makers such as Hermès and LVMH indicated that demand remains flat. Nicolas Hieronimus, CEO of L'Oréal, said that premium skincare and dermocosmetic products in China grew around 7 percent, with L'Oréal's luxury beauty division in China expanding 10 percent in the latest quarter. Data from Oliver Wyman and the World Duty Free Association found that 37 percent of high-spending Chinese consumers plan to increase their beauty product budgets next year, compared to just 4 percent who intend to buy more leather goods.
LOréal S.A.L'Oréal's luxury beauty division in China expanded 10% in the latest quarter.
Estee Lauder Companies IncArticle reports strong growth in high-end product sales in China for Estée Lauder.
Hermes International SCALuxury fashion demand remains flat as consumers shift spending to beauty.