L'Oreal welcomes record double-digit growth in China
Published: Feb 25, 2019 05:09 PM
Beauty and cosmetics giant L'Oreal said its sales in China had attained double-digit growth in 2018, marking record high expansion in the past 14 years.

The company attributed the growth to booming e-commerce.

"E-commerce is a tremendous help to our sales, and 35 percent of our sales are from e-commerce," Stephane Rinderknech, CEO of L'Oreal China, said in Shanghai on Monday. 

He said e-commerce sales of L'Oreal — which boasts 23 brands such as Yves Saint Laurent, Giorgio Armani and Kiehl's in China —  ranked first among peers.

"E-commerce has allowed us to reach more consumers, deeper and faster," he said.

Currently, China is the second largest beauty market worldwide for the group after the US, and China has been the top market worldwide for three brands, L'Oreal Men Expert, Lancome and HR, according to the company.

Rinderknech showed his confidence in China, saying he hopes that China will become the largest market in the world. 

"It is a matter of time, but I think it will," he said.

L'Oreal reported 7.1 percent year-on-year growth in sales to 26.9 billion euros ($30.52 billion) in 2018, the best year of growth since 2007, according to the company's financial statement released recently.

The report said the Asia Pacific region, driven by very strong Chinese demand, has now overtaken North America with sales exceeding 7 billion euros.

Despite the brand's success, Rinderknech said L'Oreal will still strengthen its online sales strategy, expand sales channels in fourth- and fifth-tier Chinese cities, and reach 100 million-plus consumers in the future.

Recently, the Estée Lauder Companies Inc reported financial results for the quarter that ended December 31, 2018. 

It said its quarterly net sales exceeded $4 billion for the first time. Its net sales of $4.01 billion represented a 7 percent increase from $3.74 billion in the same quarter of the previous year. 

The results show the Chinese mainland and Hong Kong continued to deliver strong growth, and the premium beauty market in the Chinese mainland has accelerated.

Market research firm Euromonitor International estimated China's annual cosmetics sales would increase by an average of about 9 percent and exceed $40 billion by 2021, surpassing the US as the world's biggest makeup and skin care products market.