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Double trouble: China lockdowns and e-commerce curbs create a perfect storm for beauty sales in China – LG H&H via Cosmetics Design-Asia

January 26, 2023

The double whammy of lockdowns hitting offline sales in China and tighter government regulations on e-commerce influencers stifling online sales are continuing to hit the beauty trade in the country, according to Korean powerhouse LG H&H.

The History of Whoo, CNP, Ohui and belif owner has stated that the operating environment in China, including travel retail, continues to be unfavourable.

It reported a Q3 sales slump of 23.1% yoy to KRW789bn (US$550m) for its beauty division, while operating profit plunged 68.6% yoy to KRW68bn (US$48m)

The firm noted that the quarter is ‘usually a slow season for cosmetics’, but added: “Consumption in China continued to shrink due to lockdowns. Offline stores struggled with lockdown measures and online sales faced tightening government regulations on e-commerce influencers.”

On the plus side, it added that momentum grew for the Ohui and CNP ‘to become the next leading luxury brands’, with sales increasing 22% and 2% yoy respectively.

It also said it was making progress in premium colour cosmetics.