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With China’s
economic growth and improved living standards, more young women
are in pursuit of the trendiest fashions and latest makeup styles.
With increased disposable incomes, they are spending more on
lifestyle commodities and on maintaining a fashionable way of
life. They represent the new age of sophistication and style
in China.
In 1996, Mr Wong Hon Wai saw the demand created by this fresh
urbane generation of women and created Colour Zone. Tapping
on his existing contacts and industry experience, he sourced
for suitable materials and formulations for a range of cosmetic
products to be marketed under Colour Zone. By 1997, Mr Wong
had put together about 50 market-ready cosmetic products, and
the first Colour Zone retail outlet was opened in Guangdong
province.
As of 30 June 2008, Beauty China had 1,651 Colour Zone retail outlets, with the highest number of Colour Zone outlets in Fujian, Zhejiang, Guangdong and Hunan provinces. CharmingLady is retailed at about 350 points of sales in Mainland China, separated from Colour Zone's.
Testament to their growing reputation and presence in China,
Colour Zone was voted in 2003 and 2004 as one of the top 10
brands in the PRC cosmetic industry in a consumer goods market
survey conducted jointly by the China Product Safety Monitoring
and Testing Centre, the China Association of Industry Investigation
and Statistics and the China Association of Famous Brands.
Colour Zone was the only local Chinese brand to be awarded one of the "2005 Top 10 Best Selling Brands" of colour cosmetics products by China General Chamber of Commerce and China National Commercial Information Centre in April 2006. Together with Maybelline, L'Oreal, Yue-Sai and Aupres, Colour Zone was also recognized as the "2005-2006 Most Favourable Colour Cosmetics Brand" by ICN China, China National Commercial Information Center and Euromonitor in October 2006.
In March 2008, the Group was awarded “Top Ten Outstanding Brand in The Makeup Line in China” by China Quality Credit Assessment Center and Phoenix Lifestyle Weekly. In May 2008, Colour Zone and CharmingLady were awarded “Top Ten Most Influential Brand” and “2008 China’s New Cosmetic Brand” by the Organising Committee of the 13th China Beauty Expo held in Shanghai.
Today, Beauty China continues to launch hip and trendy Colour Zone cosmetics and skincare throughout China. They remain focused on building its two mass-market brands, as well as product research and development ("R&D"). It set up an R&D centre in March 2007.
In February 2007, Beauty China announced that it signed a Share Purchase Agreement to acquire from an independent third party the entire shareholding in Samoa-incorporated Fu Teng International Limited, which, through its wholly owned subsidiary, Zhuhai City Mei Zhi Hui Ri Hua Co., owns a recently completed cosmetics manufacturing facility in Jin Wan Industrial Zone, Zhuhai.
In October 2007, Beauty China completed its acquisition of the Group’s first production facility and subsequently incorporated a new wholly-owned BVI company – Kist Corporation – to hold 100% of Fu Teng International Limited.
Kist Corporation is positioned as China’s leading one-stop GMP-compliant cosmetics contract manufacturer, specializing in providing private labeling, OEM and ODM services.
Located in Zhuhai, Guangdong Province, this brand new facility has a designed annual capacity of 132 million units of colour cosmetics, skincare, body-care and hair-care products. It has more than 20 production lines in a total gross floor area of approximately 26,000 sqm, coupled with a 5,000sqm warehouse space.
The acquisition is a significant milestone for Beauty China as it marks the transformation of a brand-management company into a more integrated player in the cosmetics industry. It is also a strategic move to diversify the business risk of the Group’s reliance on a single source of income, and to create a new revenue stream when ample production capacity can be utilized for manufacturing third-party products on OEM.ODM basis.
With the EU and US GMP certifications, the Group’s factory is considered one of the very few cosmetics manufacturers in China who is able to satisfy the quality-conscious OEM/ODM customers and hence reinforces Beauty China’s capability to produce products of international standard and strengthen consumer confidence in its brands.
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