Lancome will increase the price of its products in China with a range from about $2 to $31, of which skin care products increased the most. Since 2022, Estee Lauder, MISSHA and Innisfree have increased its price in China
On March 31, Beijing time, Lancome manifested in its official WeChat live streaming that its live streaming will see a big adjustment from April. Clerks working in Lancome special store in China also revealed that the price of Lancome products increasing range is from about $2 to $31, of which skin care products increased the most.
In fact, the increase of Lancome’s price is also coming up with a “solution” in the context of global price increases. Previously, P&G, L’Oreal, PROYA, Estee Lauder and other cosmetics groups have also announced that some of their brands or categories will be adjusted retail prices.
In January 2022, P&G officially announced at the second quarter earnings meeting of the fiscal year 2022 that in response to rising transportation, raw material, labor and other costs, all of its ten product categories will raise prices in 2022. The prices of its fabric care products increased from February 28 and prices of other personal care products increased from April.
In January 2022, Estee Lauder Group announced that some of its Estee Lauder, AERIN Beauty, Clinique, LA MER, Bobbi Brown, M·A·C Cosmetics, Origins, Jo Malone, Tom Ford and other brands raised their suggested retail prices, including skincare, cosmetics, fragrance and other categories.
In March 2022, Korea’s well-known affordable cosmetic brands also began to increase prices one after another. For example, the prices of 26 cosmetics from MISSHA increased by an average of 11%. Innisfree has more than 50 products recently also in the price increase, up to 36%.
Apparently, “price increase” has become a keyword in the Chinese cosmetics industry in 2022, which has been accompanied by escalating international geopolitical tensions, sharp fluctuations in international crude oil prices, factory closures, and logistical disruptions. In addition to price increases by cosmetic groups, the upstream raw material side has also increased in price.
Beginning in February 2022, the international chemical leader BASF issued three notices of the price increase: from February 16, it raised the price of the Ultramid® series of high-performance materials in the Asia-Pacific region, up to $ 800 / ton. From February 15 or the contract allows, it enhanced the North American region PBT, PET, PA and other polymers or compounds product prices and part of the impact of modified and flame retardant grade products or raise prices higher by up to $661/ton. It raised prices for all polyurethane system products in North America on or after Feb. 1.
“In the Chinese cosmetics market, some large part of emulsifiers, oils and fats, actives and other raw materials imported from the United States, Western Europe and other overseas regions. However, the international pandemic is still spreading, some factories are shut down. Chemical companies are facing long lead time and poor transportation, and other difficulties, coupled with the international trade is blocked, the raw material market has formed an oversupply situation, which also led chemical companies to raise the price of raw materials.” Chinese cosmetics industry sources said.
In the industry source’s view, both geopolitical conflicts, or the impact caused by the pandemic, all represent uncertainty in the chemical market, “Next, the trend of price increases by chemical companies may continue to appear.”
The price of cosmetics in recent years has been affected by many factors such as the pandemic, international crude oil prices, raw material costs, R&D investment, labor and marketing costs, exchange rate fluctuations, taxes, inflation and market conditions, etc., It is a dynamic process of change as these factors interact, which means that the price of products will accompany the changes in these factors and the possibility of two-way changes.