Cosmetic manufacturers report China not as rewarding as other markets
The trade show held in Hong Kong earlier in the month seen some cosmetic professionals’ report that their priorities currently lie with the aforementioned markets despite an abundance of Chinese buyers still dominating the show floor.
According to the event's organisers, exhibitor figures increased by 10% from last year and visitors from emerging Asia Pacific markets were up with prominent numbers coming from including India and Malaysia.
"During the 3-day event, 172 one-on-one business meetings took place at the International Buyers Lounge," they stated in their post show report.
One online publication WWD found that on attending the show, although expanding into China continues to be a focus for many cosmetic companies, smaller businesses reported setbacks in terms of importing into China, stating lengthy and expensive registration process as the main reasons.
Feedback is contrary to belief that China is key for cosmetic success...
This news comes as surprising, considering the EU Chamber of Commerce in China just announced that more European companies are planning further investment in the country, particularly in its western areas.
The president of that chamber, Davide Cucino noted that the increase in interest in the Chinese markets is down to more opportunities companies perceive to be promised by the country's new leadership as it seeks further economic growth through reform.
He also revealed that the survey found out of 550 European companies with a presence in the Chinese market for more than five years, 86% to be considering further investment to expand operations in the market while 41% were planning merger and acquisition deals this year.
However, he also explained that; "Optimism on growth has fallen, 71% of respondents hopeful about their prospects in China this year, down from 76% last year."
But, whilst Cucino adds that with growth numbers dropping from 36 to 22%, the proportion of EU companies are still reported as seeing obvious revenue growth in China in 2012. "In spite of some challenges in weak market conditions, China remains a pillar for European companies' global revenue generation."
