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 laurie.burkitt@wsj.com
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