Think Tank: Cosmetics Category Rules Global E-CommerceFranklin Chu, managing director of Azoya U.S., shares his insights on the market.

[Collection]Around the world, beauty is big business. According to a recent report from Coresight Research, younger Americans are the most likely to shop for beauty products on Amazon. Meanwhile, on the other side of the globe, consumers in China seek a range of foreign beauty brands, including U.S. companies like Estée Lauder, and France’s Lancôme and L’Oréal. Let’s explore the factors driving the global beauty business and how U.S. and foreign retailers can conquer the booming China market. Beauty market surges in China China’s cosmetics market already shows strong growth so far this year. China’s Bureau of Statistics reports cosmetics year-over-year sales growth of 12.5 percent in January and February 2018. Last year, total retail sales of cosmetics products in China reached nearly $40 billion, with 13.5 percent year-over-year growth — versus less than 10 percent in 2015 and 2016. According to the annual reports of major cosmetics brands, high-end cosmetics’ growth rate outpaced medium and mass-market brands. The driving factor behind this trend is the ongoing consumption upgrade in China, as consumers evolve from basic, value-oriented products to higher quality premium and luxury goods. Affluent Chinese citizens in first and second tier cities may buy more cosmetics due to retail channels’ diversification. Consumers

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