Prestige Beauty e-commerce sales in China soar in Q1 – WWD

Prestige beauty sales exploded in China in the first quarter of 2022.

According to data from The NPD Group, prestige beauty e-commerce sales in China reached $2.7 billion, up 11 percent from the same period last year.

Driven by strong Chinese New Year sales, the hair, fragrance, makeup and skincare categories grew 43%, 18%, 11% and 9% respectively, while in March alone, category sales hair jumped 33%.

March also saw growth in suncare in particular, but with restrictions tightening in China, declines are already underway.

While the makeup and fragrance categories saw overall increases in the first quarter, they still saw declines of 6% and 4% respectively in March, compared to March 2021. overall down 1% for the month.

“China may continue to see prestige makeup sales decline in April and May due to ongoing lockdowns in some major cities, including Shanghai, the country’s main manufacturing hub,” said Stanley Kee, senior vice president and CEO of APAC and The NPD Group. .

As COVID-19 cases plague China and much of the country’s population goes into lockdown, many stakeholders are concerned about the situation’s potential impact on the global economy.

Earlier in May, The Estée Lauder Cos. saw its shares tumble 12.3% on May 3 after a quarter of strong growth, prompting the company to lower its sales forecast amid concerns over China.

Nevertheless, Lauder Chairman and CEO Fabrizio Freda said he is confident the manufacturer’s sales in China will recover once COVID-19 cases in the region begin to decline.

Likewise, Kee predicts that sales of beauty products will abound in June when China’s 618 shopping festival takes place, anticipating that the government will issue “new favorable policies to boost consumption.”

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