The Chinese market favored by beauty giants

A few days ago, the CEO of Brazilian beauty group Natura&CoHolding SA said that the company is seeking to increase its business in China. He also revealed that the group is currently communicating with relevant departments in Shanghai, seeking to expand the market share of its brands in China without conducting animal experiments.

A few days ago, the CEO of Brazilian beauty group Natura&CoHolding SA said that the company is seeking to increase its business in China. He also revealed that the group is currently communicating with relevant departments in Shanghai, seeking to expand the market share of its brands in China without conducting animal experiments.

Prior to this, the group had also tested the water by selling its products on Tmall International, but did not make any obvious moves. The acquisition of Avon will undoubtedly provide the Group with a certain local resource advantage and pave the way for the layout of the Chinese market.
 
On the other hand, the acquisition of Avon also affected the group's first quarter earnings to a certain extent. It is reported that the acquisition resulted in a net loss of 820.8 million reais (approximately RMB 1 billion) within the group, which basically offset the revenue growth of other brands.
 
Coupled with the impact of the epidemic, some international markets of the Natura Group have been affected to a certain extent. After acquiring the Avon brand, Natura’s market share in Latin America has reached 11.8%. However, due to the impact of the epidemic, Avon’s net income in Latin America has fallen by 7.1%.
 
In this regard, James Thompson, Avon’s global chief beauty and brand officer, said: “We will have a stronger market advantage in Latin America, and there will be strong business development momentum in other markets, especially in China.” Therefore, the Natura Group has accelerated The layout of the Chinese market to enhance the group's sustainable development is not surprising.
 
In addition, for the Avon brand, China is still a key development market. James Thompson once said, “The Chinese market is very important in AVON’s global strategy. Localization is our consistent philosophy in the Chinese market and has become the key to our growth in the Chinese market.” For Natura Group, take advantage of This opportunity to increase the competitive advantage in the Chinese market and increase the share of the global market is also crucial.
 
In 2018, João Paulo Ferreira, CEO of Natura Group, once stated that he hopes that one day Natura Group can surpass L'Oreal, Unilever, and Estee Lauder Group to rank first in the global beauty company rankings. To achieve this goal, the layout of the Chinese market has become the only way for Natura Group to expand.