Chanel and Fenty Beauty expand to China tapping into growing market
23 May 2024 --- Chanel plans to open more stores in mainland China while Rihanna celebrates Fenty Beauty’s availability in the region by hosting a pop-up in Shanghai.
The entrepreneur attended the Fenty Beauty Alley pop-up held at the photography museum, Fotografiska. It features local elements, including a vintage street grocery store, a Mahjong room and a bubble tea stall that doubles as a foundation shade finder.
“China has such a rich culture that has always inspired me and I cannot wait to share Fenty Beauty with all of you, celebrating your unique beauty. Thank you guys so much for making my dream come true, and I can’t wait to see you soon,” the singer previously wrote in a Weibo post announcing the launch.
The event runs this week and is free to the public. Fenty Beauty launched in September 2019 in Hong Kong and Macau. The star also recently appeared on Vogue China’s April cover.
Luxury beauty
Chanel also has its sights on the Chinese market, with plans to further invest in the country and expand its retail presence.
Philippe Blondiaux, Chanel’s chief financial officer, recently told Bloomberg, “China is still a place where we are, I would say, under-distributed,” comparing the brand’s 18 stores to competing brands, which have approximately 40 to 50.
Chanel continues efforts in China following profits in the area.He says the expansion plans are part of an overall increase in capital spending this year to US$1.8 billion. According to reports, Chanel will spend more on marketing and advertising investments but at a lower proportion of sales than last year.
Chanel asserts that last year’s revenue increased 16% to US$19.7 billion, with double-digit growth in Asia.
Focus on China
Earlier this month, Chinese President Xi Jinping’s first French tour in five years ignited discussions surrounding the future of trade relations between the two nations, particularly in light of stricter Chinese rules on French cosmetic products like lipstick and fragrances.
The country’s National Institutes for Food and Drug Control also issued two new catalogs to help improve cosmetic safety. The International Authoritative Cosmetic Safety Assessment Data Index is designed for companies to access ingredient data.
The data index can be utilized as a reference for cosmetic safety assessments. It is a collection of ingredients used in cosmetics in China that are not included in the “Technical Guidelines for Cosmetics Safety Assessment.”
Meanwhile, the US government is targeting China, with the looming TikTok ban sparking concerns among platform users. Personal Care Insights spoke to a representative from the social media app on how that could affect the cosmetics industry and its influencers.
By Sabine Waldeck
