China cosmetics sales rebound in March as coronavirus outbreak proves to be a temporary setback

Sales of cosmetics are recovering rapidly in China as people return to work and retailers focus on online marketing after authorities on the mainland ease lockdown measures imposed to control the coronavirus outbreak.

Anne Ling, analyst at investment bank Jefferies, said in a report on Monday that cosmetics sales in March fared better with around 20 per cent decline compared to all other retail categories in China. She added that it was a good improvement compared to the 60 and 80 per cent decline in February when socialising was limited, reducing demand for cosmetics.

In some instances, sales of some companies like Lin Qingxuan climbed by 120 per cent year on year in February after plunging by more than 90 per cent during the Lunar New Year holiday, which is traditionally the peak season for sales.

Sun Laichun, founder of the Shanghai-based skincare and cosmetics brand with more than 300 shops across China, said recently that he was staring at bankruptcy after sales took a dive in January. With sales at bricks-and-mortar stores drying up by nearly 90 per cent, he turned to selling products online, promoting them on live streaming platforms and social media.

Sun said he sold 400,000 bottles of the company’s flagship camellia oil within two hours on Valentine’s Day. Between March 1 and March 8 during the International Women’s Day shopping period, Lin Qingxuan said its online sales jumped more than fivefold.

Sales of face packs and make-up removers on China’s e-commerce platform Pinduoduo surged more than five times in March compared to February, according to the company.