On 25th March, L’Oréal China held the “25th Anniversary Development Strategy Annual Online Communication Meeting” in Shanghai. During the event, Fabrice Megarbane, the President of L’Oréal Group North Asia and CEO of L’Oréal China, said that China has become the core strategic market for L’Oréal Group and is expected to become the group’s largest market worldwide.
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Megarbane said that since entering China in 1997, L’Oréal China has always insisted on one thing: “create beauty in China, and let the world be moved by it.” With China’s reform and economic take-off, L’Oréal has forged ahead, from “0 to 1, from big to huge”; today, L’Oréal is the largest cosmetics group in China and China has become the second largest market for L’Oréal Group in the world. As the group’s headquarters for North Asia, one of the six global R&D hubs and one of the three global beauty technology centres, China has become a core strategic market for the L’Oréal Group and is expected to become the group’s largest market in the world.
Beauty is one of the key growth drivers of the retail sector, thanks to the growing middle class in China. According to the data shared at the conference, by 2030, approximately 370 million Chinese will be in the middle-income group.
Megarbane also shared some trends that will shape the beauty sector in China. In terms of product category, he noted that makeup is becoming more high-end, while perfume and fragrance is becoming part of the new beauty routine for Chinese consumers (especially among the young generations). Functional and quality skincare is expected to grow with emphasis on individuality and science. The demand for professional haircare products is on the rise while clean beauty and men’s grooming trends are gaining momentum.
Adhering to the five pillars of L’Oréal China – adaptability, inclusivity, women empowerment, sustainability and technological innovation – L’Oréal unveiled a new strategic model for the market, CO-X.
Going forward, L’Oréal will focus on Co-creating, Co-empowering, Co-developing, Co-protecting and Co-inventing, to promote the evolution and changes of the company, the Chinese beauty ecosystem and the global beauty industry landscape.