Everyone is talking about the Chinese stock market. But how will the financial crisis affect the beauty industry?
Before Asian markets had even closesd on 24 August, financial analysts were already naming the day “Black Monday”. The Shanghai Composite dropped 8.5% in less than a day, its biggest tumble since 2007. The news triggered financial panic in every market that subsequently opened.
Pictures of stockbrokers, head in hands at their desk, quickly brought back memories of 2008. But are we really going to see another global recession? The Chinese market has become increasingly important for global beauty brands. Its beauty market is second only to the US, with annual retail sales hitting RMB200bn earlier this year. So any slowing of growth in this market is sure to have an impact on the wider industry – particularly for global brands.