China Daily Global Edition (USA)
Lipstick that’s the star of the show
market.
But I was told that Shenyang is only the one of the numerous rising second tier cities in China, which made me realize the huge potential and enormous opportunities here in China,” he said.
More than a decade ago, Agon believed that one day China would become the No 1 country in terms of economic importance globally and for L’Oreal as well. Agon says he still has this vision.
The reasons for his vision vary from the group’s knowledge of the local market, to its research and innovation ability, and to its strong team established here. But to him, the most important thing is the deeply rooted beauty traditions both for women and men in China.
“China today is the beauty capital of the world. The market will continue to increase with the rising spending power of the middle-class and the younger generation,” he said.
Statistics provided by global management consulting firm McKinsey show that China’s middle-class — who have an average annual personal income of 75,000 yuan to 280,000 yuan — will reach 275 million by 2020.
This means a huge difference in future consumption. As these people tend to have large disposable incomes and prefer personalized products and services, they will put a higher demand on product quality and in turn demonstrate a higher brand loyalty.
As global market consulting firm Bain & Co has already discovered in the past 12 months, the rising middle-class are showing more attention to high-end products such as personal care products.
“I seehowbeauty changes people’s life not only by inspiring Chinese people’s desire for beauty with excellent brands, products and services, but also by bringing people confidence, happiness and fulfillment,” said Agon.
L’Oréal China is officially established in China with headquarters in Shanghai and branches in Beijing and Guangzhou.
• 1997
Acquisition of local beauty brand Mininurse
• 2003
Acquisition of Yue Sai, a speciallydesigned brand for Chinesewomen
• 2004
Research & Innovation Center is established in Shanghai, focusing on innovations for Chinese consumers
•2005
The annual sales of L’Oréal China exceeds 10 billion yuan
•2011
Acquisition of Magic Holdings
•2013
China becomes the second-largest market of L’Oréal Group
•2016