The head of L’Oreal Thailand believes despite a wobbly economy, Thais’ need for make-up will prop up sales.

Demand in local market shifts to online, writes Pitsinee Jitpleecheep

‘‘ I still strongly believe in demand for beauty products because people want to take care of themselves, even at home. INES CALDEIRA Managing director, L’Oreal Thailand

The pandemic has severely affected the beauty market, but Ines Caldeira, managing director of L’Oreal Thailand, the subsidiary of Paris-based L’Oreal Group, still feels positive about the market.

“I still strongly believe in demand for beauty products because people want to take care of themselves, even at home,” she said. “Make-up may be affected because people wear face masks, but I see this as a challenge and the make-up business will come back in the second half this year,” Mrs Caldeira says with a smile.

The beauty market grew by 5.5% globally in 2019, but Thailand’s market expanded 6.5%. The beauty market in Thailand is very dynamic, with market size doubling from over 100 billion baht in the previous decade to over 200 billion last year.

“2019 was the first time we were the leader in the make-up category and our haircare also did quite well,” she says. “Though the coronavirus pandemic is not yet over, we aim to be the leading beauty tech company in Thailand in the future. For me the lockdown doesn’t mean a slowdown in beauty because of relationships and connections with consumers.”

When retail stores were ordered to close from March 22-May 17, the company adjusted its strategy, using advisers to training department store vendors to sell online. They used Call & Shop, Chat & Shop and other social commerce channels, giving the staff invaluable experience as well as income.

“L’Oreal Thailand is committed to everything that links to e-commerce. We are very agile in adapting online and offline strategies,” says Mrs Caldeira.

She is fascinated by the importance of beauty for both women and men in the Thai market. Thais are eager to try new things, says Mrs Caldeira, with beauty technology adoption the key factor going forward.

With e-commerce seeing triple-digit growth during April and May, the company will keep accelerating the segment.

Some 17 beauty brands under L’Oreal Thailand are offered via various platforms. Kerastase, its haircare product, was launched on Lazada allowing customers to find its product online until they can return to salons.

“Technology disrupted the beauty market, but in a positive way. We can use technology to ask customers questions and have them experience products in a positive way,” she says.

L’Oreal has a virtual make-up trial technology called ModiFace. The technology allows consumers to try make-up from a mobile phone without going to stores.

“We’ve seen this trend coming for years. It fits with the current situation and a touchless society,” says Mrs Caldeira.

Eleven of L’Oreal’s 22 brands utilise ModiFace technology, which is now available via Shopee and Lazada.

She says e-learning can create a new mindset among staff in a digital economy. The company is looking for staff who are creative in finding solutions and can adjust quickly.

“The Thai beauty market is complex. There are upmarket global brands and many local brands. Understanding Thai consumers is one of my challenges, but I’m learning more every day. Changing behaviour is a big challenge as consumption is altered,” says Mrs Caldeira.

The two pillars for the company in the second half are skincare and make-up, with beauty tech part of its core strategy.

“I believe the make-up business will rebound in the second half, but the overall beauty market is expected to be flat this year or slightly increase from the same period last year. We expect L’Oreal to outperform the market this year,” she says.

The company plans to launch a host of innovative products and bring more beauty tech to the market.

After Covid-19 abates, popular beauty items among Thai customers are likely to be liquid care and serum, and liquid foundation with light texture because people will continue wearing masks. During the pandemic, haircare and cleanser products are top sellers, says Mrs Caldeira.

L’Oreal also plans to invest heavily in both offline and online market. The company has marketplaces on Lazada and Shopee, and its own e-boutiques for luxury brands including Biotherm, Lancome and Kiehl’s. L’Oreal Thailand launched Kiehl’s on Lazada a few months ago.