Cosmetics Giant Faces China Dilemma

Cosmetics Giant Faces China Dilemma

L’Oreal’s push into the Chinese market creates a dilemma for the French cosmetics maker, according to Bloomberg, because China requires animal trials for new beauty products while the EU prohibits the practice:

China is the only major market where companies must test their mascaras and lotions on animals. Rabbits are killed or ingredients dripped into their eyes during Chinese tests, according to London-based animal-rights group Cruelty Free International.

And niche brands such as L’Oreal’s The Body Shop, and Boulder, Colorado-based skin-care maker Pangea Organics, which refuse to do animal tests, are blocked out of the Chinese cosmetic market. L’Oreal, the world’s biggest cosmetics maker, sells its namesake beauty products in the country, while P&G sells products such as Olay and Head & Shoulders. [Source]

L’Oreal last week made an offer to purchase Chinese facial mask maker Magic Holdings International for $840 million, as it seeks to tap further into the world’s third-largest cosmetics market. The company told Bloomberg that it was working with the Chinese authorities on alternative approval methods.

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