BEIJING-French cosmetics giant L'Oréal SA says it
will cut prices of products imported into China to boost sales,
following up on the Chinese government's announced cut of import
duties on some consumer goods Monday to stimulate the slowing
economy.
L'Oreal's China division said in a statement that the company
will cut the "price of most of our imported products" to encourage
Chinese shoppers to buy more. The custom duty reduction will have a
"very limited impact" on the retail price so L'Oréal is
reducing prices further, the statement said. It didn't provide
further details on products or pricing.
L'Oréal, which is the one of the largest beauty and
personal care companies by sales in China, said it is aiming to
increase its investments in research and development to offer more
products and services for China. The country has been a critical
growth market for the maker of shampoo, cosmetics and skin
cream.
China's Ministry of Finance announced Monday that it will cut
duties by half, on average, on imports including suits, fur
garments and shoes beginning June 1. A tariff on cosmetics will
fall to 2% from 5%, while a duty on disposable diapers will decline
to 2% from 7.5%, according to the ministry.
Write to Laurie Burkitt at laurie.burkitt@wsj.com
Access Investor Kit for L'Oréal SA
Visit
http://www.companyspotlight.com/partner?cp_code=P479&isin=FR0000120321
Access Investor Kit for Citigroup, Inc.
Visit
http://www.companyspotlight.com/partner?cp_code=P479&isin=US1729674242
Access Investor Kit for L'Oréal SA
Visit
http://www.companyspotlight.com/partner?cp_code=P479&isin=US5021172037
Subscribe to WSJ: http://online.wsj.com?mod=djnwires