Post by : Badri Ariffin

Global cosmetics giant L'Oreal has deepened its commitment to China by acquiring a minority stake in Lan, a fast-growing domestic skincare brand. This marks L’Oreal’s second investment in the country in recent months, signaling its focus on riding the wave of local brand growth.

While the financial details and exact size of the stake were not disclosed, Vincent Boinay, L’Oreal North Asia President and China CEO, emphasized the strategic importance of the move. “Investing in China is investing in the future,” he said, underlining the company’s long-term focus on meeting the demands of sophisticated Chinese consumers.

This investment follows L’Oreal’s recent purchase of a 6.67% stake in Chando for 442 million yuan ($62 million). Both Chando and Lan leverage natural and clean ingredients, targeting the mass-market segment with competitive pricing and strong reach in smaller cities. Analysts note that such acquisitions allow L’Oreal to tap into C-Beauty’s momentum without directly competing with its premium brands.

China’s beauty market, worth $75 billion, has become increasingly challenging for international players. Local brands have captured a growing share, fueled by fast-paced product innovation, aggressive marketing, and deep understanding of domestic consumer trends. For companies like L’Oreal, partnering with established local names is emerging as a key strategy to regain growth.

L’Oreal’s China business saw a modest 3% growth in the third quarter, its first positive movement in two years, reflecting the potential impact of local partnerships. With mass-market players like Chando ranking third in retail sales behind Proya and Chicmas, the collaboration with Lan could further strengthen L’Oreal’s presence in smaller cities and mid-tier consumer segments.

By combining its global expertise with the agility of local brands, L’Oreal aims to position itself for sustained growth in one of the world’s most dynamic beauty markets.

#Business News #Economic