L’Oreal sets more product launches

L’Oréal (Paris), the world’s number one cosmetics company, expects its operations in the Philippines to significantly grow this year, banking on the continued expansion of its portfolio and the launch of more innovative products to address the needs of new target markets.

The company develops and manufactures hair care, hair color, skin care, color cosmetics and fragrances for the consumer and professional markets.

L’Oréal Philippines country manager Paul Henri Duillet said the "success of new products and international breakthroughs made by L’Oréal research will fuel continuous growth despite the rather unfavorable economic environment in many markets around the globe."

He said sales of L’Oreal Philippines has risen 22 percent as of end-June this year, driven by the robust growth in the professional products division with L’Oreal Professionnel and Kerastase in the hairdressing industry, the launch of fragrances Ralph Lauren Blue, Armani Night, and the extension of Shu Uemura outlets.

Also contributing to higher sales were Lancome’s juicy tubes lip products which were warmly accepted by the youth market.

L’Oreal has 11 signature brands in the Philippines: L’Oreal Professionnel (which includes Kerastase), L’Oreal Paris, Lancôme, Maybelline, Giorgio Armani Parfums, Ralph Lauren fragrances, Garnier, Guy Laroche, Cacharel, Kerastase and Shu Uemura.

L’Oréal, which operates in 130 countries, has experienced significant challenges in emerging markets where currency instability is often a factor adversely affecting sales prospects and business costs.

To diversify its portfolio, L’Oréal recently acquired Yue-Sai and Mini Nurse, both major Chinese make-up and skincare brands. Yue-sai is sold in 800 department stores in 240 of China’s largest cities. On the financial side, L’Oréal (Paris) reported consolidated sales of 7.4 billion euros in the first quarter, up by 3.6 percent from the previous year’s level. Growth in the second quarter was at 6.1 percent.

L’Oréal Group chairman and CEO Lindsay Owen-Jones said he is optimistic that the company can weather the competitive challenges in the global cosmetics industry.

"We have a proven business model and a growing exposure to new markets will allow us to demonstrate this further. The good organic growth achieved by our brands, our continuing rapid expansion in new markets and the numerous initiatives planned for the second half make us optimistic about full-year figures," Owen-Jones said.

L’Oréal began doing business in the Philippines in 1989 through a local distributor and later established L’Oréal Philippines, a wholly owned subsidiary, in 1999.