L’Oréal has been present in India for 21 years and is considered a young player in the cosmetics market. However, it is the fastest growing beauty company with a CAGR of +21% over the last 7 years and representation in 750,000 points of sale. The Group is the third leading operator in the Indian cosmetics market with a 8.5% market share in the urban areas and sales of nearly €322 million in 2014.
In order to cater to this market optimally, the cosmetics Group has launched several brands covering various product categories, including: mass consumer brands Garnier, L’Oréal Paris and Maybelline New York; luxury brands Lancôme, Yves Saint Laurent, Kiehl’s, Ralph Lauren, Giorgio Armani and Diesel; professional brands like L’Oréal Professionnel, Matrix, Kérastase and Cheryls Cosmeceuticals for salons and pharmacy brands Vichy and La Roche-Posay.
L’Oréal's rapid success can be explained by its ability to adapt to the demands of a market where cosmetic routines and purchases are firmly anchored in tradition. Due to the different standards of living in India, there is a wide range of packaging options and therefore prices. For instance, Garnier Fructis shampoos are available in sachets costing 1.5 rupees (€0.02).
These low prices are possible thanks to local production and raw materials supply, in particular with the Pune plant that supplies the subcontinent with nearly 90% of its needs.
Furthermore, L'Oréal took a decisive step three years ago when it decided to set up a research and innovation centre with evaluation and formulation laboratories in Mumbai and an advanced research centre in Bangalore.