Aruba, October 9, 2019 – How China is fueling the growth of beauty brands and boosting luxury players

China is the biggest driver of the outsized revenue that the beauty industry has seen in the past few years, according to a new report by J.P. Morgan.

The country has quickly gained on the United States in beauty sales and is set to overtake it by 2023, even if growth slows. In 2018, beauty sales in China grew 12.9%, compared with just 4.6% in the States. And prestige cosmetics companies such as L’Oreal, Estee Lauder and Shiseido are reaping the benefits. As of June, Estee Lauder grew more than 40% in China over the past year, on top of the 67% growth seen in the previous 12 months, according to the report.

“What makes these companies so attractive is that they’ve been investing a lot more in digital over the past few years,” said J.P. Morgan senior equity research analyst Andrea Teixeira. Many Chinese customers outside of the most developed cities tend receive products through e-commerce sites such as Alibaba, which has been developing more quickly than department stores.

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