French beauty giant L’Oréal will not be stamping out Maybelline’s physical presence in China and migrating online completely.
Last month, reports started circulating that L'Oréal was shutting down mass-market make-up brand Maybelline’s physical stores in China and shifting the brand online completely.
However, CEO Nicolas Hieronimus confirmed that the reports were inaccurate, and the firm was only closing its underperforming standalone stores.
Hong Kong-listed L’Occitane’s business in China dropped by double digits due to COVID-19 troubles, hindering the performance of the Asia Pacific region in the three months ending June 30.
According to the firm, most of its APAC markets posted double-digit growths, led by Hong Kong, Australia, and Malaysia.
In particular, the troubled Hong Kong market posted double-digit growth, driven by travel retail growth as successful partnership with e-commerce partners, said the firm. However, the growth was offset by the troubles in China.
A.S. Watson has cautioned that consumer sentiment in China will take time to fully recover, despite an uptick in footfall following a turbulent few months due to COVID-19 restrictions.
While the company expects things to improve in the next half of the year, the company still expects some challenges, including the recovery of consumer sentiment.
In response to this, the company will leverage its strengths in its online + offline model and customer relationship management.
L’Oréal has set ‘clear roadmap’ for North Asia’s carbon neutrality achievements to be replicated – SVP
L’Oréal Group believes it can replicate its carbon neutrality achievements in China, Japan, South Korea, Hong Kong, and Taiwan.
Pankaj Gupta, SVP of L’Oréal North Asia and China operations said: “Yes, we have set a clear roadmap for our success to be replicated.”
“For climate change to be fought there needs to be a concerted effort by every organisation, across all spectrums, everywhere, to join together, to share best practice, to learn from each other, and to treat this threat with the utmost urgency.”
La Prairie China expansion: Luxury brand to open 10 more doors by end of 2022
Beiersdorf has plans to expand La Prairie’s offline presence in China with 10 more touchpoints as the brand rebounds strongly in the pandemic-plagued market.
The lockdowns that hit China in April and May, particularly in major cities Beijing and Shanghai, had a negative impact on La Prairie, the company’s high-end skin care brand.
However, La Prairie will continue its expansion plans in China on the back of strong performance in H1.