Jumping Out of the Bonded Zone Estee Lauder Brand Daily Chemical China Acceleration

Estee Lauder (Shanghai) Trading Co., Ltd. was established recently. This means that Estee Lauder is officially withdrawn from Shanghai Waigaoqiao Free Trade Zone and re-registered outside the district. The new company is a wholly-owned subsidiary of Estee Lauder Group and will gradually replace existing ones. Yijia Beauty Products (Shanghai) Co., Ltd.

Wang Xingrong, Estee Lauder's public affairs and corporate communications manager, said yesterday that Estee Lauder was recently approved by the Ministry of Commerce to establish Estee Lauder (Shanghai) Trading Co., Ltd., which is mainly engaged in the wholesale of cosmetics and hygiene products. Before the end of 2004, China's wholesale and retail market was not opened. According to the policy, Estee Lauder can only conduct business in the Waigaoqiao Free Trade Zone. It is understood that imported cosmetics from the bonded area to the market need to go through a series of rigorous procedures, while companies registered outside the bonded area are more convenient for import business, and their business scope can be greatly expanded. Since China's wholesale and retail markets were fully opened to foreign investors at the end of 2004, Estée Lauder immediately submitted an application for registration of a new company outside the bonded area to the government and obtained approval in the near future.

Estee Lauder is withdrawn from the Shanghai Waigaoqiao Free Trade Zone and will have a broader range of business in China. Previously, Estée Lauder Group relied on its wholly-owned subsidiary, Yijia Beauty Products (Shanghai) Co., Ltd. to conduct business. In the future, the current business of Yijia will gradually be transferred to Estee Lauder (Shanghai) Trading Company.

In recent years, Estée Lauder has gradually accelerated its pace in China. Not long ago, Estee Lauder China R&D Center was located in Zhangjiang, Pudong. According to Ge Bo, senior vice president of Estee Lauder Asia Pacific, since the Asia Pacific headquarters moved from Shanghai to Singapore, China is one of the most important and focused markets for the group. Peng Shiwen, president of Estée Lauder International, expects sales of Estee Lauder to surpass Japan in 5 years and become the world’s second largest market. In the previous fiscal year, Estee Lauder introduced six high-end cosmetic brands under the group to China, covering a wide range of areas such as high-end skin care, makeup, and perfumes. In the past 11 years, Estee Lauder has only sold Estee Lauder and Clinique in China. At the same time, many luxury brands under Estee Lauder that have only entered department store sales have now entered Sephora and other cosmetics retail outlets.

Another cosmetics giant L'Oreal has not jumped out of the bonded area to register a new company to carry out business operations, still through the registered in the Waigaoqiao Free Trade Zone Laimei Cosmetics International Trading (Shanghai) Co., Ltd. in China engaged in cosmetics import and export business. L'Oréal did not disclose whether it would withdraw the company from Waigaoqiao and re-register.