Estee Lauder launched a new skin care brand Osiao, which is specially designed for Asian consumers, in Hong Kong last month, and this new brand is expected to be launched in mainland China in 18 months.
This new brand is currently undergoing trial operation in Hong Kong, and no further information about its operation in Chinese mainland is available. However, according to local media reports quoting Veronique Gabai-Pinsky, global brand director for Estee Lauder Group, they plan to launch Osiao products in mainland China after 18 months.
Fabrice Weber, president for the Asia Pacific region of Estee Lauder Group, said during an interview that they hope Estee Lauder will not only be a foreign company in China, but also can truly integrate into the Chinese market. For Estee Lauder, China will become its second home following North America. Weber believed that though the growth demand in the first-tier market in China declined, there are still strong demand elements in the second- and third-tier markets.
Statistics provided by Estee Lauder showed that during the 2012 financial year, China had become the third largest market for the company, following America and Britain. The company's annual sales in this marketplace reached USD500 million. During the first quarter of 2013 financial year, the Asia Pacific region contributed USD542 million net sales, accounting for about 22% of its total net sales.