L'Oréal reveals plans to look beyond ASEAN markets
The brand's West Java factory distributes 30 per cent of its output to the domestic market and most of the rest to ASEAN countries, where the largest share goes to Thailand.
According to the Jakarta Post, more than 95 per cent of the total output is destined for Indonesia and Southeast Asia.
L'Oréal Indonesia director Vismay Sharma reveals that the international cosmetics giant; "will export to other countries, but the quantities will be much smaller."
The publication further reported that Indonesia will continue to be a strategic market for L'Oréal.
"It’s a very important market. We will invest everything necessary in this market," Sharma told the Jakarta Post.
Indonesia's market is 'one to watch'
In 2014, market researcher Euromonitor, singled out Indonesia as ‘one to watch’, stating it to be one of the fastest-growing cosmetics markets in the world.
Indeed, Indonesia is now even included in the recently identified BIITS markets – Brazil, India, Indonesia, Turkey and South Africa, which have usurped the BRIC markets – Brazil, Russia, India and China – as the primary focus for growth.
The firm notes that although latest figures show real GDP growth decreased to its slowest pace since 2009 in the first quarter of this year; “in the long term, if not on the same scale as China in the BRIC, Indonesia will remain the key market to watch in the MINT.”
Investing in Asia..
The beauty behemoth made its first ever acquisition in India back in 2013, as it looked to strengthen its presence in the professional sector with Cheryl’s Cosmeceuticals.
Headquartered in Mumbai, Cheryl's Cosmeceuticals was created in 1986 by Oscar & Cheryl Pereira and is today synonymous with skin care treatments and products across salons in India.
At the time, managing director, Jean-Christophe Letellier said that the purchase would further enhance L'Oréal's position in the dynamic professional products market "where we are present with our brands - L'Oréal Professionnel, Matrix, and Kerastase."