L'Oreal's hot on P&G's tail with latest China tailored cosmetics
Industry analysts reckon the cosmetic giant has been honing its focus on products that cater to the Chinese market in an effort to close the gap between itself and P&G, which is in the lead when it comes to beauty and personal care market share there that is estimated to reach $34 billion this year, according to Euromonitor.
According to the market researcher's senior analyst Oru Mohiuddin; “L’Oreal has become a formidable competitor for P&G in skin care and has not just approached China from various angles, including pricing and retail coverage. It also strived to make the brands more customised and effective.”
Amongst L'Oreal's latest inventions are blemish balms for men, building on the success of BB creams, and skin serums made from white fungus, ginseng, and cordyceps - a type of parasitic mushroom widely used as a herbal remedy.
Meanwhile, the company is continuing to build on global brands such as Garnier and is seeing demand for other products like its Clarisonic electric face brush device that uses sonically oscillating brushes to remove dry skin, dirt and cosmetics from the skin, as gaining momentum on the region, particularly in China.
Focusing on the AP region..
The global cosmetics giant has singled out the Asian markets as a key area for growth of late. China’s cosmetics market, the second largest in Asia Pacific after Japan, is witnessing increased demand due to improving lifestyles and rising disposable income of the Chinese population.
The France-based firm reported its first half 2012 results, singling out ‘New Markets’, which includes Asia and Africa, as the leading drivers of sales for the first time, accounting for 40 percent of the group’s turnover.
According to company chief executive Jean-Paul Agon, Asian markets will be key to growth in the next two decades for the world's biggest cosmetics company, with the markets in India and China highlighted as holding the greatest opportunities.
