(Yicai Global) Jan. 17 -- China lowered consumption taxes on imported cosmetics last October. Primera, the largest cosmetics company in South Korea, reacted to tax reductions by announcing three to 30 percent markdowns on more than 300 products in its Laneige, Innisfree, Etude House and Sulwhasoo series, effective from Jan. 15.
According to South Korea's Yonhap News Agency, the move may dampen Chinese tourists' interest in buying cosmetics in South Korea, adversely affecting cosmetics sales in the country during the lucrative Chinese New Year.
The company's Mamonde series are not affected by the cuts and their prices will remain unchanged, says Primera China. With the rise of e-commerce and cross-border online shopping businesses, cosmetics prices have become increasingly transparent and competitive, making it imperative for foreign brands to adjust their retail prices in China, industry experts point out.
All major global cosmetic brands marked down their products in Jan. 2017. L'Oreal lowered prices on some Lancome, Armani Beauty, Yves Saint Laurent products. On Jan. 5, Estee Lauder reduced recommended retail prices by up to 18 percent for more than 300 makeup and spray products.