Global Beauty Brands Accelerate Local Production of Products
- Chaileedo Press
- May 3, 2023
- 2 min read
Localization is a comprehensive consideration by international beauty brands regarding factors such as cost, geography, and brand tone.
In recent years, international beauty giants such as Kao, L'Oréal, and P&G have all shifted the production of many of their brand products to China.
Perhaps out of consideration for product quality control, international beauty giants mostly use their own factories. In addition, there are also many international beauty brands that are more restrained in terms of product localization. For example, although Shiseido has opened two factories in Beijing and Shanghai, most of Shiseido's branded products are still produced in overseas factories.
Another beauty giant, Estée Lauder, only handed over the trial packaging and limited edition packaging procedures of some products to Intercos in Suzhou for OEM, and the materials were all imported from overseas.
It is understood that in recent years, it is not uncommon for overseas brands to adopt a similar approach to Estée Lauder. An agent with over 10 years of experience in overseas large-scale distribution told CHAILEEDO, "In the past year or two, many imported cosmetics brands have chosen to place their product filling procedures in China.
Among them, Charlotte Tilbury, a popular British makeup artist brand in recent years, is one of the typical cases. It is reported that the brand had already transferred the final filling process to China a few years ago, under the responsibility of the OEM factory Intercos. Nevertheless, Charlotte Tilbury still emphasizes on product packaging that "quality comes from the UK, and raw materials come from Italy".
According to CSAR, the last process of cosmetics that comes into contact with the content is completed domestically as a domestic product and completed overseas as an imported product. Therefore, even if only the last filling process is carried out domestically, the above products belong to the category of domestically produced products in China.
Overseas beauty brands have been repackaging in China, and cost control may be the main reason. A senior industry analyst believes that "it may be related to cost saving and efficiency improvement,” he said, “The procedures for shipping by sea are relatively complex, and there will be more costs to deal with due to various inspections.”
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