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Consumer and Retail

Skincare scandal in China gives rise to demands for quality
By AMY CHEUNG
Published: September 27, 2006 12:00 AM
Public anger in China over SKII’s skincare line not only has become a public relations headache for Procter & Gamble but also underline the challenges foreign firms face as they contend with increasingly demanding consumers, The Standard reported. The US company suspended sales of its SK-II cosmetics line in China Friday after the country's quality watchdog said it found traces of potentially harmful chemicals in the product. "This is a major issue for the premium brands, not only for SK-II itself. Consumers are starting to question the quality of other premium brands," said the apper, quoted Sylvia Mu, research manager with research firm Euromonitor International, as saying. "Previously, almost all Chinese consumers thought that the higher the price, the better the quality." P&G has acknowledged that the scare would harm sales in China, while insisting the products were safe. Mu said P&G's competitors in China, including Japan's Shiseido and France's L'Oreal, might benefit from their bigger rival's problems.
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