The global spread of coronavirus changed the situation in the global cosmetic market. Already several leading companies have published forecasts of how the outbreak of a new disease will affect their business.
Thus, in Procter & Gamble stated that the coronavirus in China could affect up to 17 600 of the company’s products due to the fact that the 387 suppliers in China are sending more than 9,000 different materials in the world. Each of these vendors has its own problems when resuming activities. The consumer products giant expects the outbreak of the new virus will have a significant impact on the profit for the first quarter of this year in China, which will affect the whole company, given that this country is its second-largest market.
MarketWatch reports that for the third quarter Estee Lauder Companies Inc most of the expected decline in sales of premium beauty products in China. The company has updated its sales forecast for the second half, stating that it now forecasts growth of 1% compared to the same period a year ago.
Major exhibitions of the beauty industry are deposited, including Cosmoprof Worldwide Bologna for fear that they intensify the outbreak of viral diseases. Instead of March the event will be held in June. Two other beauty exhibition LuxePack and PCHi, which was to be held in Shanghai, was also cancelled.
L’oréal said that the effects of coronavirus will be temporary, based on the experience of the manufacturer of cosmetics, which already faced with similar phenomena, for example, an outbreak of SARS in 2003 and middle East respiratory syndrome (MERS) in 2015. However, regardless of the crisis situation in 2020 net sales of cosmetics L’oréal in China in February was higher than last year. “This crisis even strengthen the position of the players in the field of e-Commerce in China,” said CEO Jean-Paul AGON.
According to Alibaba Group Holding Limited, the L’oréal products are among the most popular in February, as women seem to improve their makeup skills at home – even protective masks can not prevent women from using the magical power of lipstick. But the eyeshadows are defined by the winners, as sales of palettes skyrocketed.