The Chinese shopper may soon be getting a better deal on beauty.
The Estée Lauder Cos. Inc. said it will cut prices across certain brands in China. The move, which takes effect July 1, is a response to the decision by China’s Ministry of Finance to lower import duties on cosmetics and a number of other goods to help boost domestic spending. The Chinese government is reducing tariffs on cosmetics in the range of 2-to-5 percent.
“In support of the Chinese government’s efforts to drive consumption in China by lowering tariffs on imported skin-care products, the company is reducing suggested prices on some of its brands’ best-selling skin-care products,” Lauder said in a statement in China on Tuesday. “After consecutive years of growth in China fueled by increasing numbers of loyal consumers, we believe this move will further strengthen the appeal of our best-selling products.”
A company spokeswoman said Lauder will decrease prices on select products within the Estée Lauder, Clinique, Origins, Lab Series, La Mer, Bobbi Brown and Mac brands. The price reductions will apply across its authorized retail channels, including department stores, Sephora and e-commerce channels such as its brand stores on Tmall and the brands’ free-standing stores.
Other beauty brands, such as L’Oréal and Shiseido, also are expected to take price reductions, according to industry sources.