L’Oreal looks to emerging markets to capture a billion new consumers
During a press conference held yesterday in Paris, Laurent Attal, vice president and director general of research and innovation, explained how the beauty giant will try to understand consumers better in the emerging markets.
The ability to innovate for these markets, which L’Oreal says now make up 53 per cent of the global beauty market, must come from a deep understanding of the habits, needs and preferences of the Chinese, Indian and Brazilian consumers, the company explained.
Regional research centres
In order to achieve this, the company said it will be opening regional Research and Innovation hubs as well as an international Studies and Consumer Insights centre.
In addition to consumer habits altering between regions, the company also said that a consumer’s experience of a product, and perception of performance, can also differ.
For example, the company said the foaming ability of a shampoo or shower gel is not appreciated in the same way by different cultures. In an attempt to address these different perceptions of performance, L’Oreal said it would be adapting its testing methods for different markets.
Technology will help grow the business
In addition to getting closer to the markets, the company will also be investing in technology, Attal explained.
“We have to, on the one hand be as close as possible to consumers, and on the other, invest in technologies that will enable a bigger capacity for innovation,” he said.
Stem cell technology, reconstructed skin and genomics were all highlighted as technologies that will help the L’Oreal Group expand and develop.
The company also underlined oily skin as a strategic area for development in emerging markets. This is due to climate, diet and physiology all working together to make oily skin a problem in many of the emerging markets, the company explained.