Follow us twitter facebook
Edition: Global
Click here to subscribe toour free weekly newsletter click here
Companies & industry

L’Oréal gets to know Indian consumers

With nearly 1.21 billion people in 2011, India is obviously a key target within L’Oréal’s strategy to attract a billion new consumers by 2020, in particular by tapping into the growing middle class in emerging countries. For this purpose, the group strives to better understand the needs of local consumers and invests in research and innovation.

L’Oréal has been present in India for 18 years with a portfolio of 15 brands, growing at an average annual growth rate of 30%. The Group is number 3 of the beauty sector in India, with 10% market share in urban areas [1].

Optimal catering

In order to cater to this market optimally, the cosmetics Group has launched several brands covering various product categories, including: mass consumer brands Garnier, L’Oréal Paris and Maybelline New York; luxury brands Lancôme, Yves Saint Laurent, Kiehl’s, Ralph Lauren, Giorgio Armani and Diesel; professional brands like L’Oréal Professionnel, Matrix, Kérastase and Kéraskin Esthetics for salons and pharmacy brands Vichy and La Roche-Posay.

Jean-Paul Agon (L’Oréal Chairman & CEO) in a traditional store in New Delhi (2011). © L’Oréal

Jean-Paul Agon (L’Oréal Chairman & CEO) in a traditional store in New Delhi (2011). © L’Oréal

L’Oréal’s rapid success in India can be explained by its ability to adapt to the demands of a market where cosmetic routines and purchases are firmly anchored in tradition,” explains the French cosmetics giant. For instance, in order to take into account local standards of living, the range of packaging options - and therefore of prices - has been widened.

Thus, Garnier Fructis shampoos are available in sachets costing 1.5 rupees (0.02 euros). Of course, such prices are only possible through local production and raw materials supply, in particular with the Pune plant that supplies nearly 85% of L’Oreal’s sales in India. Established in India since 1994, Garnier has succeeded in becoming the leading multi-category beauty brand in the country, with nearly 750,000 points of sale, both in the traditional network of neighbourhood shops (which account for 82% of L’Oréal sales in India) and in the modern supermarket network (accounting for 18%).

Indo-vation

To better understand the aspirations of the Indian middle class, L’Oréal took a decisive step two years ago when it decided to set up a research and innovation centre with evaluation and formulation laboratories in Mumbai.

Thanks to a key consumer insight, L’Oréal seized the opportunity to meet the needs of this demanding clientele by offering Indian women products that are modern and innovative yet specific to their existing beauty habits.

Print advertisement for Garnier Color Naturals. © L’Oréal

Print advertisement for Garnier Color Naturals. © L’Oréal

Thus, Several essential products from the Indian beauty culture have inspired the French multinational’s range. For instance, the importance of hair care in India was behind the Garnier launch of a Fructis 2-in-1 shampoo (shampoo + hair oil), specially designed according to the tradition of oiled hair. Similarly, Garnier Color Naturals coloration was introduced as a modern alternative to traditional coloration with henna.

As per the top-selling Colossal Kajal from Maybelline New York, it was inspired obviously by women’s use of traditional kajal to line their eyes.

A promising market

Although cosmetics spending is still relatively low in India, in particular if we consider the overall population, the outlook is encouraging. The Indian cosmetics market registered impressive sales worth Rs 264.1 billion (US$ 4.75 billion) in 2011. The industry is estimated to expand at a compound aggregate growth rate (CAGR) of around 17 per cent during 2011-2015, according to RNCOS latest research report.

Boosted by the growing importance consumers give to their appearance, it has enjoyed double-digit growth in recent years (+13% in 2010), recording the highest growth of any country in the Asia-Pacific region.

Source: L’Oréal

Footnotes

[1] L’Oreal 2010 provisional estimates. Sell-in. Excluding currency fluctuations. Excluding oil.

Portfolio

  • L'Oréal Paris billboard at a busy street in Mumbai (2010) © L'Oréal
  • Garnier Men deodorant billboards in Mumbai. © L'Oréal
  • L'Oréal plant in Pune - 45% of the factory output is haircare. © (...)
© 2012 - Premium Beauty News - www.premiumbeautynews.com
latest news
Focus
MakeUp in newYork hosted more than 3800 visitors, with a growth of 12% of international guests.

MakeUp in New York moves to Javits Center to continue growing

The latest edition of MakeUp in NewYork was a huge success, announced the organisers. Held at the Center415 on 5th Avenue, in Manhattan, on September 11&12, 2019, the two-day B2B event dedicated to the makeup and skincare supply chain welcomed more than 3800 visitors, with a growth of 12% of international guests. Brazil, Canada, (...)

read more
job opportunities
Experts’ views
100% natural and biodegradable film former offers enhanced sun care protection

Brittany Pease
100% natural and biodegradable film former offers enhanced sun care protection

LexFilm Sun Natural MB is a multidimensional film-forming polymer which imparts superior water-resistance to sunscreens in comparison to leading synthetic polymers. This latest innovation addresses consumers’ demand for natural ecofriendly ingredients, while supporting brands in their new product development goals as they navigate (...)

read more

Features

We use cookies to give you a better browsing experience. By continuing your visit to this site, you accept the use of cookies. Read more and set cookies
close