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When developing beauty and personal care products for emerging global regions, several formulation considerations need to be part of the equation.
Net sales growth during the quarter was particularly strong in the company’s luxury and MAC brands, online and travel retail channels, and overall in emerging markets.
Avon's total revenue of $2.3 billion for the quarter decreased 7%, or 1% in constant dollars, compared to the same time period in 2012.
Increasing numbers of ethnic shoppers and travelers who shop in Western markets are further encouraging this growth area of the beauty industry.
With Australian consumers looking for cheaper products, volumes are expected to grow slightly ahead of value, at a CAGR of 3.7% to 2017.
During the fiscal year, sales growth was particularly strong in the company’s luxury brands, online and travel retail channels and overall in emerging markets, along with solid gains in several developed countries.
Despite low spending, skin care is the largest sector in the Australian health and beauty industry.
Avon CEO Shari McCoy says, "Our second quarter results reflect continued progress in stabilizing Avon's business. There is still significant work to be done to deliver sustainable performance in the near and longer term, but I'm pleased with the progress to date."
The cosmetics market in Japan showed indications of a turnaround for Shiseido, and overseas, the Americas and Asia, including China, continued posting moderate economic growth, but conditions weakened in Europe.
For Kao's beauty care business, sales increased 8.5% compared with the first half of restated FY2012 to ¥278.6 billion.