L’Oréal introduced Garnier to China in 2006. Now, the company will focus on marketing the L’Oréal Paris and Maybelline brands there. The announcement is the latest indication of a slowdown in Chinese demand.
Garnier accounts for about 1% ($20.4 million) of L’Oréal’s Chinese sales. China is the third largest cosmetics market in the world, with nearly $26 billion in sales and is expected to grow 63% for the five years to 2015, according to Euromonitor International.
“We believe this will enable our consumer-products division to accelerate its conquest of the Chinese beauty market,” Paris-based L’Oréal said in a statement. “We are committed to ensure a smooth transition process will be put in place for our employees and associates.”
Revlon’s announcement came after Avon Products reported that its revenue plunged 67% in China in the third quarter.
Similarly, Procter & Gamble said it’s losing market share in China.