The Chinese cosmetics market is proving a decidedly tough nut to crack for European and American interests with news that another major investor is closing up shop. L’Oreal has decided to withdraw Garnier, one of its cosmetic brands, from the Chinese market. The news comes just one week after another major cosmetics manufacturer Revlon announced its departure from the potentially lucrative yet hugely challenging Chinese market. The recent capitulation of Revlon is indicative of the obstacles facing foreign companies but is more keenly highlighted when L’Oreal the world’s largest cosmetic manufacturer concedes defeat and throws in the towel.
L’Oreal started its Chinese business operations in 1997. The group has demonstrated the business acumen that has made it top dog in the cosmetics industry with a series of strategic acquisitions, the latest of which was the purchase of China’s leading facial mask producers “Magic Holdings” (CL news on 20 Aug). While it is indisputable that foreign investment in the Chinese cosmetics market has had its share of casualties, this decision may however be another masterstroke in L’Oreal’s legacy, allowing it to focus its attention on development of its flagship mass cosmetics brands, L’Oreal Paris and Maybelline New York.
Garnier is a mass cosmetic brand acquired by L’Oreal in the 1970s, and entered the Chinese market in 2003 mainly as a shelf display brand. It saw steady market growth between 2008 and 2011 followed by a period of stagnation which spelled the end for the Garnier brand in China.
We provide full-scale global cosmetic market entry services (including cosmetic registering & filing, regulatory consultation, customized training, market research, branding strategy). Please contact us to discuss how we can help you by 
