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China’s High-End Brands Work with Mass Market

November 2, 2007

CHINA: Kanebo Cosmetics Inc. and other big-name brands are expanding their traditional marketing channels to include drugstore chains, where cosmetics sales are soaring despite a slump in the overall domestic market

Although they have long relied on department stores as a major retail channel, high-end cosmetics makers now plan to supply drugstores with products priced from $43-$86. For their part, drugstores are also seeking to carry luxury lines as they attempt to increase their profits.

Kanebo already is selling a new line of cosmetics, Dew Superior. The high-grade skin care line is available at drugstores, supermarkets and other mass-retailers. The new brand is targeted at women in their late 20s to early 40s. Its chief products will carry prices of $60-$86, roughly 50% higher than those of other Kanebo brands sold at drugstores.

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