A division of premium cosmetics by L’oréal in China has increased two times, which helped French cosmetics company make 2018 the best in the last ten years.
In General, the Asia-Pacific region (APR) is significantly ahead of other markets, an increase of 26.2% in the fourth quarter and 24.1% at the end of 2018. “The figures for geographical areas remained differentiated. In Western Europe, sales growth was constrained by challenges in some markets, while sales in North America improved compared with the previous year, said Jean-Paul AGON, Chairman and CEO of L’oréal. – New markets achieved its best results since 2007, and the Asia-Pacific region, led by China overtook North America with sales in excess of 7.9 billion dollars”. The success of the Asia-Pacific region helped to increase total sales of firms that increased by 7.1% at the end of 2018 to 30.5 billion U.S. dollars.
Sales of L’oréal Luxe grew by 14.4% by 2018 “historic year” for the division, stated in L’oréal. “L’oréal Luxe is gaining market share in the Asia-Pacific region, especially in China, which demonstrates double-digit growth. Major brands – basic catalysts, especially in the L’oréal Luxe Division, where, for example, the Lancôme sales exceeded 3 billion euros,” – added Mr. AGON. L’oréal Lancôme associates success with high sales of care products for their skin lines Génifique and Absolue.
The demand for care products for the skin are also stimulated active cosmetics, which enabled this segment to achieve record growth in a decade, finishing the year with a growth of 11.9%. The cosmetics giant announced that brands Active Cosmetics such as Vichy, La Roche-Posay CeraVe and continue to gain market shares worldwide, the increase has been particularly strong in Asia and North America.
The Consumer Products division finished the year with growth of 2.5%, but the performance across regions was mixed. The portfolio consisting of such brands as L’oréal Paris and Maybelline New York, has increased dramatically in China and India, raising unit in spite of the sluggish results in Western Europe. China and India also contributed to the expansion of the division of professional products in Asia Pacific.
Along with high rates of competitors Estée Lauder and LVMH recent results from L’oréal helps to remove fears of slowing China’s economy. According to company representatives, “the dynamism of Chinese consumers” was one of the main drivers of growth in the Asia Pacific region.
“In an economic context that remains volatile and uncertain, we are confident that through our innovative, powerful brands, digital excellence and, in particular, outstanding teams around the world, we can fulfill our commitment to corporate social responsibility, to strengthen its position on the beauty market in 2019 and to achieve another year of sales growth and profits,” concluded AGON.