P & G will introduce new high-end brands to grab the beauty market

Procter & Gamble will introduce an upscale makeup brand Illum into China in the spring of next year. Together with the existing SK-II, it will compete in the cosmetics field. The goal is to target the cosmetics giants L'Oréal and Estee Lauder.

Illum is a new high-end makeup brand under Procter & Gamble. Starting from Japan, like SK-II, and after selling hot in the Japanese market, P&G hopes to copy Japan's successful experience to China and is also preparing to push it to other markets around the world.

Liu Ling, who is responsible for this project at P & G Public Relations Department, said that P & G attaches great importance to this new brand and is currently preparing for pre-listing marketing. Feng Jialu, SK-II senior manager responsible for external affairs of P&G further stated that Procter & Gamble owns a lot of luxury brands in the cosmetics and perfumery areas, such as Gucci. The introduction of these brand perfumes is in preparation. According to the 2005 financial report, the sales of Hugo Boss and Locaste perfumes that P&G obtained from the brand in 2001 increased by 10 times within 4 years.

Procter & Gamble's vice president Su Ye Nuo said that the current global sales of beauty salons have exceeded 20 billion US dollars, accounting for one-third of P & G's global performance, has become the center of Procter & Gamble business development, it will also be future growth Engine.

According to Li Jiayi, President of Procter & Gamble Greater China, in the Chinese market, the sales of its beauty and hairdressing fields are as high as 70%, which has become the pillar of P&G's profit sources. P&G will continue to focus on beauty salon products in the Chinese market.

In fact, in recent years SK-II has become the pioneer of P&G's battle in the high-end cosmetics sector. Despite high pricing and lawsuits, investigations revealed that SK-II's share in the high-end cosmetics market is currently under strong offensive television and print advertising. It has soared to 14.5%, which is not far from the 19.6% share of L'Oreal's Lancome. Lancome has been the top domestic high-end cosmetics market for many years.

From this perspective, P & G's biggest competitor in China has changed from Unilever to L'Oréal and Estee Lauder, and the three major cosmetics giants compete in the field of high-end cosmetics. In the past 12 months, Estée Lauder has introduced six high-end cosmetic brands to mainland China, and L'Oréal also stated that it will continue to introduce new brands next year.