China: A powerful growth driver for L'Oréal Luxe

Celebrations at Lancôme

L'Oréal - No. 1 luxury cosmetic group in China market (source: Beauty Search Panel 2012). © L'Oréal

Celebrations at Lancôme

L'Oréal - No. 1 luxury cosmetic group in China market (source: Beauty Search Panel 2012). © L'Oréal

China, which should become the world’s leading luxury market within the next ten years, is one of the foremost growth engines for L’Oréal Luxe. Several of the Group’s brands, like Giorgio Armani and Lancôme, have achieved excellent performance in this market, ranking among the ten most desired upscale brands (Bain and Company).

Lancôme was launched in China in 1993 – a veritable pioneer of luxury beauty, being the first brand to tap into pockets of the new middle class Chinese women trading up to luxury. Through brands like Lancôme, L’Oréal provides Chinese consumers with tailor-made products that meet their unique needs, made possible by dedication and investment in consumer insights and Research & Innovation. For example, Lancôme Energie De Vie is especially created for Chinese women, helping them to emanate their brightest “Qi Se” (complexion) with three key natural ingredients: Rhodiola, wild yam and gentian. For Chinese consumers, Lancôme is synonymous with luxury, quality and results, that is why the brand leads in premium skin care, whitening as well as anti-ageing. Today, Lancôme is present in over 70 cities in China (at the end of 2012) with ambitions to continue reaching out to more and more Chinese consumers, as reflected by the opening of 18 counters in tier-3 cities in the next two years.

As avid yet highly demanding luxury buyers, these consumers – among the youngest in the world – also offer L’Oréal an opportunity to reinvent its brands. To design the luxury of the future, the Group is particularly attentive to the needs and desires of the post-1980’s generation who fit very different consumption models than their parents and who will be behind the brand successes in China for the next 15 years.

Did you know?

 

1/ While Chinese consumers regularly visit official brand Web sites, 19% of them also state that they consult blogs dedicated to luxury (KPMG study, 2011). This makes them precious influence and awareness tools for the L’Oréal Luxe brands.

2/ The leading luxury brand in China (retailer feedback), Lancôme entered 18 new cities in 2012, bringing the total number of cities where it is available to over 70.

3/ In China, L’Oréal Luxe brand awareness was first built at the department store counters in Shanghai, Beijing, Hangzhou and Guangzhou, as well as Hong Kong. It now extends to expanding mid-sized cities like Ningbo and Kunming.