less rose by 9.5 percent (Euromonitor 1). These numbers tend to dispel analystsÆ fears that the cosmetics market may be saturated, as evidenced by some manufacturersÆ decisions to cut prices and launch new products to secure market share (Euromonitor 1). Others contend, however, that ChinaÆs cosmetic consumption is far from saturation due to the countryÆs potential customer base of 1.3 billion and its high rate of economic growth (7 û 8 percent), which is expected to improve living conditions and incomes for many rural residents and thereby enable an increasing number of people to join the cosmetic consumption force (Lobe 1). Also significant is ChinaÆs 2001 accession to the World Trade Organization (WTO), which will further open its markets and stimulate consumption (Lobe 1).
Thus, analysts expect the Chinese cosmetics and toiletries market to grow more than 63 percent in constant terms by 2005, making it the fastest growing country in the Asia-Pacific region (Euromonitor 1). Development of the smaller
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