For more than a decade, the ambitious shoppers in China warm through a fast -growing economy and increased wages, and products from cosmetics giants such as L’Oréaland Esi LauderAnd Chisido. Before hitting the Covid, China appeared Appointment to transgress The United States as the largest makeup market in the world.
These booms have ended, as more Chinese consumers resort to emerging local brands, such as Mao Geping and Florasis.
L’Oreal sales in China Mainland Decline Last year, its total sales of North Asia decreased by about 3 %. The Chinese market, the largest part of the company’s revenues in North Asia, represents 17 % of group sales, a decrease from 23 % in 2022. The French company continues to describe China as an important market, but it has it It is said I started cutting the workforce for retail due to the slow Chinese demand.
With the stagnation of China, L’Oréal is now looking forward to the regions, such as the Middle East and Southeast Asia, as a source of growth.
The term L’Oreal for “South Asia, the Pacific, the Middle East and North Africa” - will soon play a “much larger role” when it comes to beauty.
L’OREAL, No. 91 on Fortune’s Europe 500, I mentioned 1.1 billion euros (1.19 billion dollars) sales for the first quarter of 2025, an increase of 12.2 % on year, throughout Sabmina and sub -Saharan Africa (SSA).
This is still small compared to other regions, sitting behind Europe, North America and North Asia. But while Sapmena-SSA only contributed 9.2 % From L’Oreal’s quarterly revenues, it was the only region to record dual growth.
SAPMENA covers huge spaces of the world, extending from Morocco to New Zealand, slightly less than 19,000 km. 35 markets in the region cover 3 billion people, or about 40 % of the world’s population, however only 10 % of global cosmetic sales. “It is necessary to meet, and in the end the population composition must win,” says Sharma.
The SABina High growth is not surprised by Sharma. He says: “Consumers in this part of the world are smaller than 5 years than the rest of the world, and they live in ambitious societies and economies that grow quickly.”
China has proven that it is a difficult market for global cosmetics companies after guardianship. China’s slow sales have decreased the financial results of the American company, Esi Lauder and Shasido, Japan.
The slow economy and stagnant consumption is partially responsible. But there is also a new competition. The “C-Paaut” brands began to capture Steam among Chinese shoppers, as the new brands have become viral on Douyin, the Chinese version of Tiktok, and other social media platforms. (L’Oréal pays attention, invests in local Chinese brands like summer)
However, Sharma believes that China provides lessons for SaPmena.
In Southeast Asia, like China, there are highly connected consumers accustomed to e -commerce and broadcasting. For example, Sharma notes that more than 50 % of L’Oréal works in Vietnam comes from e -commerce.
This is less healthy in the Middle East and North Africa.
“When you look at the ecosystem of beauty there, you still have the Tiktok store. They are still a few years behind platforms like Shopee, like Lazada,” he says.
However, consumers in the Middle East participate in preferences similar to those in Southeast Asia. “Beauty expectations are very similar,” Sharma says.
This gives L’Oréal an opportunity to grow in the region. “Our ability to create a large -scale content in the Gulf Cooperation Council becomes a great advantage,” said Sharma.
This story was originally shown on Fortune.com
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