Sephora, a subsidiary of LVMH Moët Hennessy Louis Vuitton SA, the world's largest luxury goods retailer, has started first online shop in China.
To begin with, the French cosmetic and perfume online store will offer well over 1,000 products under Sephora's own brand.
Certain exclusively authorized brands, which are already available at its retail outlets, will also be made accessible online next year.
Sephora, which launched its first store in China last year in Shanghai, has currently has three such stores in the city.
Besides, it will shortly open shops in Beijing, Guangzhou, Shenzhen, and other large Chinese cities, so as to reach 100 shops mark nationwide by 2010.
Sephora has posted 20 percent annual growth in online sales over the past few years in the US and France and this growth is far higher than its outlets' 3 percent growth.
Other foreign cosmetics retailers attracted to China's large market are L'oreal and Estee Lauder, who have already established themselves in China.
Interestingly, China has is witnessing a higher demand for luxury goods and cosmetic, which in turn is due to the increase in the disposable income of 40 million consumers of luxury brands in major cities across the country.
Cosmetics sales in China are likely to reach RMB100 billion by 2010.
marketing@alchempro.com
