THE WHAT? Shares in C-beauty companies have experienced an uptick as investors bet on a wholesale switch towards cheaper, local brands in the wake of the coronavirus pandemic, according to a report published by Bloomberg.
THE DETAILS Proya Cosmetics saw its shares hit a record high in Mat, Bloomberg reports, and is now trading at 68 times forward earnings, faring considerably better than industry stalwarts Shiseido and The Estee Lauder Companies.
THE WHY? Dai Ming, Fund Manager at Hengsheng Asset Management told Bloomberg that Chinese brands have been boosted thanks to their mastery of the digital channel. “International high-end brands hold more market share offline, which makes their business suffer more during the pandemic,” he said.