L'Oréal sets its sights on China
French beauty group supplies sun care products for Shanghai’s World Expo workers
The president of L'Oréal China, Paolo Gasparrini, has said that the organisers of the Shanghai international exhibition this year asked L'Oréal to supply over 100,000 units of sun protection creams for the exhibition workforce. He remarked that it was a good way for the brand to become better known in China.
The French major has said it expects the bulk of its new consumers in the future to come from China, which is forecast to produce 50% of the 650 million or so new clients in the Asia Pacific region. L'Oréal has set a target of €1 billion of sales in China in 2010 with the market growing at around 10% annually. Gasparrini said Chinese brands of cosmetics were losing ground to the benefit of international brands, which provided better quality and a better match for customers' aspirations. The French group now has 19 brands on the top end and mass market distribution networks with the main focus on skincare products (56% of sales). There are, however, some market nuances which may prove tricky, including the dislike of perfumes in a society where individual distinction is not encouraged. The men's segment of the market accounts for about 25% of the total and here L'Oréal is concentrating on hair care products following the launch of a L'Oréal Paris shampoo late last year.
