Opportunities in China: L’Oreal Expects China to Become its Largest Market
The president of global beauty giant L’Oréal North Asia and chief executive of China Executive Officer Fei Borui, in an exclusive interview with The Paper, expressed confidence in the future growth and development of L’Oréal in China. He stated that China becoming L’Oréal’s largest market is only a matter of time.
Faber highlighted that Chinese consumers have become more diverse and sophisticated in recent years, providing ample opportunities for new products and brands. He also mentioned that the size of the Chinese market and the development of new first-tier cities offer additional growth opportunities for L’Oréal.
According to the recently disclosed third quarter report of L’Oréal Group, the group’s sales in the first three quarters increased by 12.6%, with sales in mainland China maintaining a steady growth rate of 7.7% year-on-year.
Faber stated that L’Oréal has been investing heavily in factories, R&D facilities, digital capabilities, and brands in the Chinese market. The company has been actively involved in the Chinese market for 26 years and has recently focused on innovative operating models.
The success of L’Oréal’s online activities in China has been attributed to its constant focus on putting consumers at the core of its activities. The company is striving to integrate and convert online and offline beauty channels to provide the best service and experience to consumers.
Faber also highlighted emerging trends in the beauty industry, with scalp, hair care, and fragrance categories experiencing rapid growth. Chinese consumers, particularly Generation Z, are becoming increasingly concerned about scalp care, leading to a surge in the sub-scalp care market.
L’Oréal has been a regular participant at the China International Import Expo (CIIE). The company sees the CIIE as an excellent opportunity to showcase new brands and innovations and establish connections with China’s innovation fields. L’Oréal plans to introduce more brands at this year’s CIIE, including Aēsop, and bring 18 new beauty technologies.
The CIIE also serves as a platform for L’Oréal to showcase its technological solutions. The company is focused on beauty technology and aims to achieve personalized customization of makeup through its PERSO technology. L’Oréal plans to conduct pilot launches and achieve commercialization of its technological solutions in China by 2023.
Overall, L’Oréal is optimistic about the future of its beauty business in China and believes that China’s diverse and growing consumer market presents numerous opportunities for growth and development. As the company continues to invest in the Chinese market, it anticipates that China will eventually become its largest market.