L’Oréal’s luxury cosmetics sector expects growth throughout the year
L’Oréal’s luxury products include Yves Saint Laurent perfume and make-up, Lancôme and Biotherm creams, Shu Uemura make-up and Giorgio Armani, Cacharel and Ralph Lauren perfumes; it accounts for approximately a quarter of L’Oréal sales.
In spite of debt worries in Europe, Nicholas Hieronimus is confident; “economic indicators are a little better than expected, such as in France, so we have reasons to be confident… I don’t see any reason for the consumer environment to deteriorate in Europe”.
According to Hieronimus, Lancome was the best-selling luxury cosmetics brand in China, which is set to become L’Oréal’s second-biggest market for luxury products next year, just behind the United States, with the percentage revenue growth in China in 'good double digits'.
Likewise, Nick Debnam, Asia Pacific chairman of consumer records, KPMG, reiterates luxury brands banking on strong growth from China’s luxury conscious consumers to boost sales.
Furthermore, he said, “China is the number one priority as competition in the luxury consumer market is tougher than ever, with Chinese consumers recognising 57 luxury brands this year as opposed to 45 last year.”
Debnam stated that important elements of a brand such as its heritage story is very well received in China, as well as details such as when the brand was established and whether it was made by craftsmen in France or Italy.
Some of the growth for the luxury cosmetics division this year would be driven by product launches such as, a new Lancôme mascara this summer, a Lancôme cream in autumn and a new perfume called Tresor Midnight Rose.
