Through aggressive marketing investment, our cosmetic brands in the China Business, including prestige brands such as SHISEIDO, Clé de Peau Beauté, IPSA, and NARS, and Made in Japan brands such as ELIXIR and ANESSA, achieved significant growth. In addition, we delivered substantial growth for our e-commerce through strengthening our digital marketing and collaboration with key digital players. For local Chinese brands, AUPRES continued to see growth while profitability of Za improved, thanks to our business structural reforms.
The Chinese market is expected to see higher spending by younger consumers born after 1990, as well as market growth led by expansion in tier 3 and tier 4 cities. In addition, we forecast further growth in what is already one of the world’s largest e-commerce markets.
We will continue to reinforce marketing investment with a view to maintain and accelerate our growth in China. In particular, we will bolster our brand equity focused on SHISEIDO, Clé de Peau Beauté, IPSA, and others with the aim of speeding up growth in the prestige business. Furthermore, we will ramp up investment in digital marketing and e-commerce.
Going forward, we will continue to realize growth in China through such means as establishing a strategic team in Hangzhou together with a major e-commerce platformer with which we currently collaborate.