Now positioned as a luxury goods manufacturer, from Estee Lauder did not intend to reduce their social status, although facing the status quo, the Chinese women's cosmetics on spending more than 500 yuan less than the proportion of the population is high.

    In December 2003, the world's largest cosmetics group L'Oreal announced the acquisition of Chinese skin care brand of small nurses, means that the cosmetics industry, crocodiles into the Chinese market to further accelerate the pace.

    In 2002, China's cosmetics market with total sales reached 5.5 billion U.S. dollars, China has become the world's eighth and Asia's second market, and in this market, there is more than 3,000 Chinese and foreign cosmetics enterprises in competition. But there is no doubt that in this part of the market, with consumers is still the most internationally renowned brands, an increasing number of foreign counterparts, focusing on China.

    The acquisition of the company's brand meaning has been enshrined as one of the Estee Lauder Group, the growth of know-how. Since 1995, the company acquired from the European market a total of 14 brands, which, like Bobbi Brown, M. A. C, Aveda and other brands to the company's development have a significant impact.

    Foreign high-end cosmetics company mergers and acquisitions of domestic enterprises will become China's cosmetic industry, the trend soon?

    In this regard, Mr. Gerba believes that the current acquisition opportunities in China, Estee Lauder has not yet come, China's domestic brands fell far short of the standard acquisition of Estee Lauder, Estee Lauder never go to in order to address a particular market acquisition took place.

    Localization of production will usually adopt a strategy of multinational corporations as a means to reduce raw materials, labor and transportation costs. However, in the next few years, Gerba said, Estee Lauder, and there is no consideration to set up factories in China, although China is