Shiseido files a lawsuit against China's ALDI, saying LACURA makeup primer packaging is suspected of plagiarizing CPB

The picture on the left shows the pre-makeup products launched by LACURA, a cosmetics brand launched by China's ALDI; the picture on the right shows the key to skin radiance and flawless makeup primer of Shiseido's top brand. (taken from the Internet)

[Reporter Qiu Qiaozhen/Reporting from Taipei] China's affordable beauty products have once again stirred up controversy. A product priced at only 24.9 yuan (approximately NT$118) was packaged similarly to a high-end beauty product priced at 540 yuan (approximately NT$2,554), prompting Japanese beauty giant Shiseido to sue.

According to foreign media reports such as "Global Cosmetics News", China's Shiseido (Shiseido China) has filed an anti-unfair competition lawsuit against China's ALDI (ALDI China). The product in dispute is a makeup primer launched by ALDI's own beauty brand LACURA. Shiseido said that the appearance of its packaging is highly similar to its high-end brand Clé de Peau Beauté (CPB) Skin Key Flawless Makeup Cream.

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The People's Court of Pudong New Area, Shanghai, China is expected to hear the case on November 5. It is worth noting that the two products not only have different brand positioning, but also a huge price gap. The controversial product of LACURA is only priced at 24.9 yuan. In comparison, the price of CPB-related products is 540 yuan. The price difference between the two is more than 20 times.

China's affordable beauty products have stirred up controversy again, prompting beauty giant Shiseido to file a lawsuit. (Bloomberg)

This time Shiseido filed the lawsuit based on the Anti-Unfair Competition Law rather than trademark infringement. It is expected that the dispute will focus on whether the similarities between the two will cause confusion among consumers or unfairly take advantage of CPB’s business reputation. Since the case has not yet been decided, whether the product constitutes unfair competition remains to be determined by the court.

ALDI is an international affordable supermarket chain originating in Germany. It is famous all over the world for its extremely low prices and high cost performance. It is one of the world's representative discount retailers. Its business covers Europe, North America and the Asia-Pacific market. The group is divided into two independent companies, Aldi Süd and Aldi Nord, operating more than 10,000 branches around the world.

ALDI is known for streamlining product categories, controlling operating costs and highly developing its own brands, extending from food and daily necessities to beauty and personal care. By developing its own products, simplifying the supply chain and reducing brand marketing and other costs, ALDI has formed a price gap with traditional brands.

Among them, LACURA is ALDI's representative beauty and personal care private brand, launching skin care, makeup and body care products in different overseas markets. In the past, ALDI has been regarded by consumers as a lower-priced "alternative" option because some of its products are similar to well-known brands in terms of packaging, product positioning or appeal.

In the Chinese market, ALDI first entered the market through e-commerce, opened its first batch of physical stores in Shanghai in 2019, and continued the parent company's private brand strategy. According to foreign media reports, private brands currently account for more than 90% of ALDI's product portfolio in China, becoming an important feature in its competition with other retail channels.

The report also pointed out that the lawsuit highlights the growing tension between retailers' "lookalike" private label strategies and well-known beauty brands' protection of unique packaging and brand value. Especially as "substitute" products are attracting more and more attention in the cosmetics market, and as low-priced substitute products are attracting more and more attention in the cosmetics market, disputes between brand appearance, packaging design and intellectual property rights have become more prominent.

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