White, bright outlook for Dow Corning

   Date:2008/03/04     Source:
DOW Corning, a global leader in silicone technology, has found the key to cracking the cosmetics market in China, with growth double the industry average.

The secret, said Scott Fuson, executive director of life science at the United States-based firm, is customizing products to reflect variations in culture and climate.

Asian consumers favor whitening products against the sun-kissed look that Westerners desire - representing a significant opportunity for Dow Corning and its competitors, Fuson said.

The company has developed new formulations and materials to win market share.

"China is of top-priority for us," Fuson said. "You have a wonderful population here and people want more cosmetics and shampoos."

According to research firm Euromonitor International, the growth rate in China's personal-care industry, including skin-care and hair-care products, will grow around 14.6 percent in 2008.

"For us, it's about double that," said Fuson.

Dow Corning was working to follow trends such as using natural ingredients and developing culturally specific products.

Fuson predicted that status-conscious new consumers in emerging geographies who want the "fair-skinned" look will trigger demand for more skin-whitening products. In 2005 alone, more than 60 such products were launched across the Asia-Pacific region.

And there would be greater emphasis on grooming products designed specially for men - already a booming sector in countries like India, he said.

Michigan-based Dow Corning built a service center for applied technology next to its manufacturing site in Songjiang, on the outskirts of Shanghai in 2002.
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