Elizabeth Arden is seeking partners to manufacture products in China in a bid to become one of the top five cosmetics brands in the country within the next two or three years.

"Manufacturing locally can bring us specific technology suited for Asian skins, and it's not just about saving costs," said Jacques Steffens, executive vice president and general manager of Elizabeth Arden International.

"We make very early steps of the plan and we are exploring opportunities for manufacture, not only in China, but in Asia," Steffens said in an exclusive interview with Shanghai Daily.

The US-based cosmetics maker aims to be among the top five cosmetics brands in China by 2010. Since 2005 it has climbed six places and last year ranked ninth.

After changing its business model in China from agent to direct distribution in 2005, Arden's sales network has expanded to 53 cities across the country from 23 cities, and the number of its counters also jumped 260 percent in the period, Steffens said.

"Sales have grown 450 percent since 2005 and the monthly productivity of counters also increased by about 200 percent," he added.

He expected that Arden's growth in China would be faster than the average level of the industry in the country.

The company will also adjust sales networks, logistics systems and inner structure over the next two years.

"We will focus on core pillars of our business, which for the Chinese market is skin care."

Arden is aiming to make the brand image younger, more fashionable and professional by renovating and developing its Ceramide, White Glove, Intervene and Prevage products.

It launched a new series of products in Shanghai yesterday.

Ceramide Gold ultra restorative capsules are designed to appeal to Arden's younger customers.

The Nasdaq-listed company reported a net loss of US$3.8 million for the three months ending on March 31 this year, compared to a net income of US$3.2 million a year earlier, mainly due to the weakness in the consumer and retail environment in North America and in Britain.

Arden would be more cautious in these two markets and put more effort into other regions, such as Asia Pacific, South America, the Middle East and Eastern Europe, Steffens told Shanghai Daily.

(Shanghai Daily July 3, 2008)