The company reportedly sees “good potential” for growth in the Indian cosmetics market, with turnover already reaching Rs 1,600 crore in 2012.
Aseem Kaushik, India’s head of professional products, commented to The Economic Times: “Our turnover stood at RS 1,600 crore in 2012. We expect double digit growth of 10-15 percent in the Indian market.”
He also said that India’s skin and hair care industries, which have reached a level of Rs 2,500 crore per year, is now growing at a rate of 15% per year, making it an excellent area for investment.
Tailoring products to the Indian market
India was one of the company’s best performers in 2012, growing over 23%- ahead of its predicted results for 2013. The discrepancy between the two financial periods may be a result of the currency crunch and slowdown in India’s economy.
In recent years, L’Oreal has made a strong effort to tailor their products to the Indian local market, introducing versions of traditional cosmetics like kohl pencils which incorporate new features such as additional colors.
The company recently opened their first research center in India, a 53,819-square-foot facility in Mumbai, which is intended to develop products tailored to the local markets.
Jean-Paul Agon, CEO of L’Oreal, stated that he intends for the new center to “accelerate the growth of innovative products tailored for the Indian market.”
“We want also to localize the formula and the products themselves to create tailor-made products that are adaptable to the specific culture, beauty tradition, habits, lifestyle and purchasing power of every country and so specifically and especially for India.”
Acquiring local talent
L’Oreal is picking up native brands in an attempt to gain more local expertise in India. The company has recently acquired Cheryl’s Cosmeceuticals, giving it a network of an additional 10,000 salons.
Kaushik stated that, following the cosmetics giant’s acquisition of the firm, Cheryl’s brands will now be available in L’Oreal outlets.