Whether a company is a retailer, a brand marketer or a manufacturer of packaging components, the beauty industry is looking eastward for growth opportunities.

Sephora, Europe’s leading beauty retailer that operates approximately 515 stores in 14 countries, is planning to establish a nationwide sales network in China through a retail joint venture with the Shanghai Jahwa United Co Ltd., according to Sephora.

Sephora has an 81% stake in the joint venture firm, Sephora (Shanghai) Cosmetics Co Ltd, with Jahwa holding only 19%. Under the deal, Jahwa has the right to increase its shares to 49% within two years and it can also forego the right if the venture does not operate as well as expected. Sephora is due to open its first Chinese store in Shanghai next month.

Across North America, Sephora has an expanding network of more than 95 stores.

Alcan Inc. reported that it has purchased a packaging manufacturing site in the Chinese Suzhou region, which will be equipped to fabricate beauty and personal care products to better serve its global customers and meet fast growing regional demand.

“This investment enables us to be better aligned with our customers’ development in these emerging markets,” said Christel Bories, president and chief executive officer, Alcan Packaging. “This new manufacturing base will be supported by our technical expertise and development capabilities. Our customers are looking for global suppliers who can ensure quality, service and reliability throughout the world,” she added.

Alcan Packaging has signed an agreement with the local government of the Mudu New District for the manufacturing site, which will initially produce plastic and aluminum packaging for make-up and skincare such as mascaras, lipsticks, compacts, cream jars and dispensers.

Production is scheduled to begin in the third quarter of 2005. This new operation underpins the company’s business strategy for profitable growth aimed at maximizing value, and will be supported by its network of 12 existing plants in Asia, according to Alcan.