Chinas Beauty Market Retail sales increased by 17% year-on-year Foreign cosmetics enterprises captured about 80% market share in key cities Cosmetics sales growth relatively slower in tier 1 cities 1400 18.7% 169%16%103 20% 170% 1000 8 15% 21.4 600 18.3 11.3 20082009201020112012 Sales value ■Ter1■Tier2■Tier3 Source National Bureau of statistics of China ANNUAL GROWTH LOREALChina’s Beauty Market • Retail sales increased by 17% year-on-year • Foreign cosmetics enterprises captured about 80% market share in key cities • Cosmetics sales growth relatively slower in tier 1 cities 11.3 18.3 21.4 ANNUAL GROWTH Tier 1 Tier 2 Tier 3