This article only represents the author's own views.
A fresh Hong Kong IPO application from Chando Global Holding Ltd. is showing the big potential of China’s huge cosmetics market, as domestic consumers increasingly delegate their beauty spending to such domestic brands. The company is rising quickly in a Chinese market traditionally dominated by foreign players. Its latest listing document, filed last week, shows all top five players are international heavyweights, including, L’Oréal (OR.PA), P&G (PG.US), Estée Lauder (EL.US), Shiseido (4911.T) and LVMH (MC.PA).
But that seems to be changing fast, as domestic cosmetics brands rapidly upend the foreign dominance of China’s 1.1 trillion yuan ($159 billion) cosmetics market. The domestic names have soared ahead to take more than half of that market, accounting for 57.4% of sales last year, according to the China Association of Fragrance Flavor and Cosmetic Industries.