Outsourcing Works For Beauty China

Yahoo Finance reports Beauty China Holdings, a small Hong Kong-based, Singapore-listed cosmetics concern, has quietly doubled its sales and profits in China during the past two years by tapping into a global strategy: outsourcing.

Sam Wong, Beauty China's founder and controlling shareholder, sets the strategy and develops ideas for makeup, packaging and marketing campaigns. He farms out production to a handful of Chinese manufacturers and sells products directly to about 90 independent distributors who get them sold at 700 outlets in China. Beauty China doesn't own any outlets, but as part of its arrangements with distributors, the company can specify how retail displays are designed and decorated.