China's beauty Market Shifting away from the traditional distribution channels Health and beauty retailers and online retailers replacing Grocery retailers and departmental stores retail value rsp 2011 Grocery Retailers -Hypermarkets 265 Non-Grocery Retailers -Health and Beauty Retailers 119 Chemists/Pharmacies --Parapharmacies/Drugstores -Other Health and Beauty Retailers 0.2 28.7 -Other Non-Grocery Retailers 0.1 Non-Store Retail 14.6 19 LOREALChina’s Beauty Market • Shifting away from the traditional distribution channels Health and beauty retailers and Online retailers replacing Grocery retailers and departmental stores