L’Oreal posts slower growth in China
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L’OREAL, the world’s largest cosmetics group, said growth in China slowed to 7.7 percent last year from that of 10.2 percent in 2013, as consumption growth slowed in China and globally.
The French company’s total sales in China were 14.3 billion yuan (US$2.28 billion) last year, as the country remained its the third-largest market.
Globally, like-for-like sales was up 3.7 percent under fixed exchange rate to 22.5 billion euros.
“Moderate growth in the fast moving consumer goods sector is becoming a normal situation under China’s new economic scenario,” said Jason Yu, general manager of Kantar Worldpanel China.
“Beauty market growth is boosted by trading up from a more sophisticated group of consumers, and we’ve seen high-end product lines growing at a much faster pace than mass market products,” he added.
Alexis Perakis-Valat, L’Oreal Group Executive vice president for Asia Pacific and CEO of L’Oreal China, said future growth would come from more tailor-made products for local consumers and geographical expansion into lower tier cities, especially for luxury product division.
Questions & Answers
Q.What was the growth rate for L'Oreal in China last year compared to the previous year?
What was the growth rate for L'Oreal in China last year compared to the previous year?
L'Oreal's growth in China slowed to 7.7 percent last year. This is a decrease from the 10.2 percent growth reported for 2013, reflecting a general slowdown in consumption.
Q.How much were L'Oreal's total sales in China last year?
How much were L'Oreal's total sales in China last year?
Total sales for L'Oreal in China last year reached 14.3 billion yuan, which translates to US$2.28 billion. China remains L'Oreal's third-largest market globally.
Q.What strategy does L'Oreal plan to use for future growth in China?
What strategy does L'Oreal plan to use for future growth in China?
L'Oreal plans to focus on tailor-made products for local consumers to drive future growth. They also intend to expand geographically into lower-tier cities, particularly for their luxury product division.
Q.Which product segments are performing better within the Chinese beauty market?
Which product segments are performing better within the Chinese beauty market?
The beauty market is seeing high-end product lines grow at a much faster pace than mass market products. This trend is driven by more sophisticated consumers 'trading up'.
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