L'Oreal Set To Reap Rewards Of China's Beauty Sales Growth

Market analysts Trefis highlighted a Morgan Stanley report on China’s beauty products market, which the authors believe will become the world’s largest. It was L’Oréal’s second largest market in 2015, behind the US, and the company’s leadership in digital gives it an advantage in a market where e-commerce sales of beauty items rose from 3% of the total beauty market in 2010 to 19% in 2015. Online sales account for over 20% of the company’s Consumer Products division’s total sales in China. Morgan Stanley notes the growing demand for premium cosmetics by Chinese consumers online or through travel retail channels, and L’Oréal’s luxury products division is well placed to capture this sales growth. Trefis said that skin care is L’Oréal’s most valuable segment and it expects the company to expand its share in global skin care, with China playing a major part in that.