L’Oréal in China

L’Oréal has consolidated its position as the number one beauty company in China, thanks to a unique portfolio of brands and strategy focused on consumers in all their diversity. Investment in innovation, an open ecosystem and talent development is enabling L’Oréal to conquer new territories and new consumers and confidently grow the Chinese beauty market.

In China, we’re unleashing our brands’ full potential through an omnichannel approach that’s attracting new consumers by capitalising on a robust operational model and an ecosystem of continuous innovation. We’re investing in the beauty of tomorrow.

2^nd L’Oréal’s 2^nd biggest market
No.1 L’Oréal is the beauty leader in China

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The beauty of diversity in China

“Beauty for each”: the goal of providing inclusive beauty solutions tailored to individual aspirations guides L’Oréal’s consumer-centric strategy in China. In a post-pandemic market focused on wellbeing and quality of life, L’Oréal’s ability to respond to differing needs, lifestyles, desires and traditions is underpinned by a broad portfolio of brands and stand-out innovations, notably in high-end skincare. Global brands continue to resonate with Chinese consumers, as seen in the launch of ultra-premium Replasty Age Recovery Eye Repairing Night Care by Helena Rubinstein, alongside the strong growth of North Asia brands like YueSai, 3CE Stylenanda, Shu Uemura and Takami.

Teams redoubled their creative efforts to attract and engage consumers with a more personalised beauty offer building on a systematic O+O approach and spectacular events. These included eye-catching installations in three key cities for the launch of Lancôme’s new lipstick L’Absolu Rouge Drama Matte, which offers a rich array of shades designed to attract younger consumers. In Shanghai, L’Oréal Professionnel organised “The NEXT Hair Show”, challenging 56 hairdressers to create over 110 styles based on four forward-looking themes. This incredible artistic showcase – activated both online and offline – made hairdressing a premium, futuristic experience.

In addition, L’Oréal China celebrated inclusion and diversity at its “Beauty for People” exhibition in Chengdu, which showcased the Group’s insights into skin, hair, makeup trends and beauty for all ages, as well as all different types of beauty.

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No.1 in China thanks to innovation and investment

L’Oréal has successfully exported its know-how and expertise to China, as well as exporting the best of China to the rest of the world. Following discussions with the Chinese authorities which led to new innovation policies, SkinCeuticals was granted the first in-store licence for Custom D.O.S.E unit, a digital tool used to create personalised, ultra high-performance skincare solutions at points of sale. Teams have tailored recent innovations for China, such as the L’Oréal Paris Bond Repair haircare range, which provides specialised hair repair, thanks to new molecular technology, through formulas co-created with Chinese consumers and based on the Group’s insight into the haircare needs of the Asian population.

L’Oréal continues to invest substantially in China, with two main goals. The first is to meet demand in the buoyant Chinese market. The Group opened a second fulfilment centre to cater to growing demand for premium skincare, haircare, makeup and fragrances for the Luxe Division, which achieved record market share in China in 2023. The second goal is to develop and share Chinese innovations worldwide. BOLD invested in the biotech startup Shinehigh Innovation, the winner of L’Oréal China’s BIG BANG Beauty Tech Innovation Program in 2022. The two companies will build on discoveries in the field of supramolecular chemistry to co-develop new and sustainable beauty solutions.

In addition, L’Oréal continued to develop professional links through events with the Chinese dermatologist community, boosting business growth in China. The Dermatological Beauty Division achieved significant professional and consumer awareness with the La Roche Posay cancer support programme and SkinCeuticals’ integrated skincare with energy-based device procedure.

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Expanding into new markets

L’Oréal is capitalising on its 26-year presence in China and on middle-class expansion in medium-size cities. The Group has fully rolled out its omnichannel strategy across the country to attract new consumers by combining physical points of sale, showcasing the full L’Oréal range, with online activations. L’Oréal Paris strengthened its presence in malls through kiosk stores, helping to build awareness and engagement to win over new, younger consumers nationwide.

Towards a low carbon future

In support of government commitments to decarbonisation, L’Oréal China put its sustainability commitments into action through notable initiatives with partners and suppliers. During the first-ever International Carbon Neutrality Expo in 2023, 10 strategic suppliers in North Asia signed a decarbonisation manifesto with L’Oréal, committing to concrete low-carbon measures. L’Oréal also created a partnership with Alibaba in 2023 to promote the circular economy in e-commerce by focusing on low-carbon products, a responsible logistics chain and consumer education.

China teams also continue to advance the L’Oréal for the Future programme, from eco-design to plastics recycling. One such example is L’Oréal Paris Extraordinary Oil shampoo, an innovation developed by teams in China whereby every part of the packaging, including the pump, is recyclable – a first for the Group. L’Oréal has also begun to roll out its environmental impact labelling system in China, starting with the Biotherm brand.

Investing in our teams and young people

L’Oréal China continues to invest in employees and their career development to ensure teams remain agile, motivated and innovation-focused. In 2023 this included training programmes on data, AI and new tech topics, as well as content and activation competitions to help marketeers hone their skills and create ever more aspirational content. L’Oréal is particularly invested in young people: the InnovatorZ Summit organised together with the celebration of the 20^th anniversary of Youth Fun (L’Oréal China’s youth programme) brought together thousands of students both online and in person for discussions with L’Oréal’s CEO Nicolas Hieronimus. He used the opportunity to talk to young Chinese talent and present L’Oréal’s plans for open innovation and the future of technology. The event also incorporated a job fair to meet the talent that will shape the beauty of tomorrow.