L'Oréal establishes India as a hub for Southeast Asia markets

By Michelle Yeomans

- Last updated on GMT

L'Oréal establishes India as a hub for Southeast Asia markets

Related tags Hygiene

Global cosmetics giant, L'Oréal is stepping up its research and innovation division in India to further cater to Southeast Asia's demand in the hair care and male grooming sectors.

To date, L'Oréal has invested Rs 1,000 crore in India's manufacturing and research facilities which is part of the company's strategy to make it among its top five markets in the next few years along with objectives to bring in revenues of Rs 7,000 crore by 2020.

The beauty player also has a long way to go in India's male grooming and skin care if it wants to increase its presence and boost the small percentage of the market share it currently has in those categories to get ahead.

“Our R&I centres in Mumbai and Bangalore are working on sustainable innovation to meet our target of reducing carbon emissions by 60 per cent at our plants and distribution centres by 2020,​” L’Oreal India managing director Jean-Christophe Letellier told PTI.

"Besides the unit in Pune, we have set up a manufacturing unit in Himachal Pradesh in 2013 for hair colour, which is built to be growth ready," ​he added.

L'Oréal to incorporate more traditional based formulations

L’Oréal is also looking to bridge a gap between hygienic products and 'treatment' and 'care' ranges as India is deeply rooted in traditional herbal or natural based cosmetics.

What makes India unique is that it is rooted in traditional beauty recipes, particularly in the hair care segment - where oils and treatments are in high demand.

Market research firm Mintel confirms, stating that launches which bridge the gap between value and prestige products are likely to drive the growth in India.

In fact, L’Oréal has already combined this ethos in the hair colourant segment with ‘Garnier Black Naturals’.

According to Vivienne Rudd, Director of Global Insight, Beauty & Personal Care at Mintel; launches like L'Oréal’s seeks to “encourage consumers to trade up from traditional, low cost products to more sophisticated products that use familiar ingredients and claims and add a more cosmetic twist, promising luxuriant, shining colour and professional results at home​.” 

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