L'Oréal to Cut Prices of Products Imported to China to Boost Sales--Update

By Laurie Burkitt 

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 [e-mail]

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