The popularity of make-up among Chinese women has led the world's largest cosmetics company to makes its second deal in China in as many months.

L'Oreal has signed an agreement with Yue-Sai, the make-up brand founded by Chinese-American TV celebrity Yue-Sai Kan.

As the allure of beauty attracts more and more women in the world's most populous nation, L'Oreal is hoping to better position itself within the appealing market.

L'Oreal targetted Yue-Sai because it is supported by many loyal consumers.

"I will stick to Yue-Sai, no matter who owns it. It is Yue-Sai Kan who told me what is beauty," said Yuan Mei, a middle-aged lady in Shanghai.

A TV lifestyle reporter, Yue-Sai Kan became the biggest cosmetics queen in her native China - where there is even a postage stamp with her image.

Founded in 1992 Yue-Sai has been owned by French cosmetic company Coty since 1996. In 2003, Yue-Sai reported sales of almost 38 million euros (US$47 million) in 2003.

From the outset, Yue-Sai's product lines were created exclusively for women. Yue-Sai is a major brand with a strong market position, and is sold in 240 of China's largest cities.

Paolo Gasparrini, general manager of L'Oreal China, said the company will keep the valuable brand.

"Yue-Sai, a symbolic brand for the Chinese woman of today, will naturally slot into L'Oreal's portfolio... The brand strengthens the group's leadership in make-up and facial skincare. "

The deal on Yue-Sai follows the Paris-based company's announcement in December of its takeover of Chinese cosmetics and skincare brand Mininurse.

China is now the world's eighth largest and Asia's second-biggest cosmetics market after Japan, a sign of growing disposable incomes in an increasingly wealthy society.

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