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China is now the second largest consumer of cosmetics in the world behind the United States, and is continuing to expand rapidly. However, 80% of the cosmetics sold in China are imported from foreign companies — local Chinese cosmetic companies are finding it very difficult to gain market share in their own, domestic market. China’s domestic cosmetics companies are confronted with many challenges: cultural issues of worshipping foreign products, claims of plagiarism and dishonest marketing and promotion, the significant expense of new product research and development. But, perhaps most significant of all, Chinese cosmetics customers worry about purchasing domestic products because there is an overall lack of trust that Chinese companies and their products will deliver on their brand’s promise. In this article, I identify and discuss current issues of trust that Chinese consumers have with the domestic cosmetics industry, and suggest some strategic objectives for domestic cosmetic companies to follow towards reversing the dominance that foreign brands currently have over locally produced cosmetic products.

A Foundation of Trust: The Key to China’s Domestic Cosmetic Companies Earning Their Share of the Rapidly Expanding Chinese Cosmetics Industry