Some name brand, imported cosmetics are forecast to increase in price January 1, but consumers will absorb the changes and sales will not be impacted, an analyst said Tuesday.
"We have just received notification that the price of some brands such as Lanc?me will increase 20 to 30 yuan ($3.02 to 4.53) per item starting this New Year holiday," the director surnamed Liu with personal care retailer Sephora, located inside Joy City shopping mall in Beijing's Chaoyang district, told the Global Times via phone Tuesday. Liu declined to be named since interviews require permission from the company's PR department.
A saleswoman at a Clinique counter inside the Shin Kong Place, a mall that targets affluent consumers, also told the Global Times Tuesday she was busy with replacing some price tags, "some cosmetic prices will increase around 20 yuan ($3.02) each," she said.
Most foreign brands sold in Guangzhou, South China's Guangdong Province, including Dior, Channel and Biotherm, will increase between 30 and 100 yuan ($4.53 to 15.09), nearly 15 to 30 percent higher than present prices, since the New Year holiday, the Guangzhou Daily reported Tuesday.
An e-mail sent to the Global Times from L'Oreal China skirted questions concerning whether its brands prices will be raised. Biotherm, L'Oreal Paris, and Lanc?me are all brands under L'Oreal group.
In that statement a L'Oreal official who declined to be named said "it is possible that the cosmetic prices will fluctu-ate because of R&D costs, inflation and foreign exchange rates, and so on."
But "we will try our best to stabilize the prices," she added.
The price of some cosmetic brands under L'Oreal group and Estee Lauder will increase 5 to 10 percent in January in Hangzhou, East China's Zhejiang Province, the local newspaper Dushi Kuaibao reported Tuesday.
One industry watcher said cosmetic makers will use every excuse such as upgrading formulas and package to raise prices each year, but this year will be special.
"Inflation caused raw material costs to jump, and this is another reason that should not be ignored," Chang Yizhi, an analyst with CIC industry research center, told the Global Times Tuesday.
Chang said sales of some cosmetic brands will not be impacted next year.
"Affluent consumers of premium brands will not be fazed by the added expense," Chang said.
