Shanghai a must-visit place for a wave of executives from personal-care multinational firms
Editor's note:
High-quality growth, the most-mentioned phrase during the Two Sessions, will keep guiding China's new route of development. As a bellwether city, Shanghai takes a model role in mapping out a growth of high quality, and here are what we find in different sectors of our life.
Shanghai has welcomed a slew of top executives from leading personal-care and beauty companies, and they've pledged further investment plans.
It could not be a pure coincidence as the city, known for its position as a consumption center, has been beefing up efforts to bolster investment via more campaigns and supportive policies.
As a lucrative sector, the personal-care and luxury skincare market in China is attractive for multinational companies hoping to take a foothold in the fast evolving consumer goods sector.
In the first two months, Shanghai's actual use of foreign capital rose 18 percent to US$4.961 billion and it also added 11 new regional headquarters and five research centers from multinationals.
L'Oréal's fulfillment center in Nantong for its luxury division would complement existing facilities in Suzhou which mainly handles mass market offerings.
For Nicolas Hieronimus, who became L'Oréal chief executive in 2021, it was his first visit to China last month. He was also received by Shanghai Party Chief Chen Jining.
L'Oréal Chief Operations Officer Antoine Vanlaeys and other executives accompanied Hieronimus for the visit to China.
The beauty firm announced a new investment project last month – the Intelligent Fulfillment Center in neighboring Jiangsu Province for its luxury division for brands such as Lancôme and Yves Saint Laurent.
The rapid growth of direct to consumer (D2C) orders and the continuing e-commerce boom has highlighted the need for a more agile and customizable service for consumers. The new fulfillment facility could offer consumers a frictionless experience and also support responsible consumption, said Vanlaeys.
"The LUXE Intelligent Fulfillment Center will be a vital component to our go-to-market strategy," he noted.
The 45,000-square-meter site would feature increased storage, delivery capacity and data intelligence, and be equipped with advanced logistics and robotics technologies. Construction is set to begin in 2024, and opening planned for 2025.
President and CEO of The Estée Lauder Companies Fabrizio Freda (third from left) was joined by executives and officials to unveil its innovation labs.
Another heavy-weight visitor was President and CEO of the Estée Lauder Companies Fabrizio Freda who was traveling along with executives including Carl Haney, executive vice president of Research, Product and Innovation.
They visited Haikou in Hainan Province before landing in Shanghai in late March. It was also his first visit to China in nearly four years.
The company's China Innovation Labs in the Caohejing High-Tech Park was officially put into use which includes the new Global Advanced Technology Center and Men's Beauty Center of Excellence.
This marks the company's reinforced commitment to building on long-term partnerships with the exceptional scientific community, academic institutions, suppliers, manufacturers and others in China and worldwide.
"Through breakthrough products, superior formulations and cutting-edge technologies, the China Innovation Labs will enable faster speed to market for our products," said Fabrizio Freda, president and CEO, The Estée Lauder Companies.
He also noted that Shanghai's move to make beauty and fashion merchandise a key industry is inspiring news for the company while talented personnel are a major attraction to invest in the city.
Constantin Sklavenitis, chief brand officer of Coty's prestige division, also made a visit to China last month.
The US skincare and fragrance group's brand Lancaster, which made its debut at the 5th China International Import Expo (CIIE), introduced its new ultra-premium line "Ligne Princière" by opening its first retail store at the Yintai Department store in Hangzhou in late March.
He came along with Chief Scientific and Sustainability Officer Fan Shimei, Chief Commercial Officer for the Prestige division Caroline Andreotti and brand president of Lancaster Laure Calvel, among nearly a dozen top executives during their recent visit to China.
Lancaster also has plans to extend its offline retail presence in Nanjing, Beijing and Chongqing in the near future, as the latest indication for the company's move to expand its footprint in China for its skincare lines.
Coty's skincare lines will be its strategic pillar in the future and it's speeding up new product launches in China.
The business trips by these senior executives indicators the importance of Shanghai and China for the personal-care industry, while the city also returns with warm responses via new services and policies to enhance their investment confidence.
Last Thursday, the Shanghai Global Investment Promotion Conference 2023 was held at the Shanghai Expo Center, inviting the world to share opportunities for development and collaborate on major plans.
At the conference, Shanghai announced a fresh set of 24 investment promotion policies to attract businesses to the city, including a maximum reward of 100 million yuan (US$14.54 million) for significant investment projects.
Last Tuesday, Shanghai launched two comprehensive sets of 41 policies and measures to boost international trade and investment.
The new policies optimize policy supply and strengthen system integration in Shanghai's current situation. The measures promote foreign trade and investment through high-level opening-up and high-quality development. Optimizing the business environment strengthens foreign trade and investment service guarantees.
