Aqua Bio Technology (ABT) has entered into a distribution agreement with LICA Enterprises in China, Hong Kong and Taiwan for its ingredient Aquabeautine XL in a move aimed at expanding its network in the Asian cosmetics market.
In setting up a distribution network in China and Hong Kong, ABT is taking advantage of the high demand for anti-aging and skin care products and the growth of these products in the region.
Sales and marketing director ABT, Fanny Coste stated that the agreement “opens up the doors to the Greater China region. China is the 4th largest beauty care market and accounts for 1/5 of the value growth globally.”
As such, by tapping in to the potential of the Chinese skin care market, ABT’s agreement takes advantage of LICA’s three business bases in Shanghai, Taipei and Guangzhou as well as its customer base of cosmetics manufacturers.
ABT claims its ingredient Aquabeautine works to remove dead cells from the surface to reveal the new skin beneath initiating the renewing and nourishing process.
Skin care dominates
According to market analyst Euromonitor, skin care dominates the cosmetics market in China.
It accounts for an estimated 36 percent of all purchases in a market that is forecast to be valued at $77.84bn by 2012.
Within skin care the nourishing and anti-aging category saw the strongest growth rate, increasing value sales by 23 percent in 2010.
Euromonitor expects to see dramatic sales growth during the forecast period within the cosmetics industry and in turn, an increase in the skin care category.
Likewise, China’s ongoing economic growth and consumers’ rising disposable income levels will fuel growth.