(Yicai Global) Feb. 26 -- L'Oreal's China sales rose at the fastest pace in 14 years in 2018 on the back of a substantial presence on e-commerce platforms that cater to new consumer groups in smaller cities. The French cosmetics giant aims to deepen its relationship with online customers.
Revenue jumped 33 percent in China last year, Jiemian News reported, citing L'Oreal China Chief Executive Stephane Rinderknech, who spoke at a press conference yesterday. L'Oreal's online retail business made up 35 percent of its total sales in the country, while the figure was less than 1 percent in 2010.
The company's brands, including L'Oreal Paris, Lancome, Maybelline, YSL Beauty, Giorgio Armani Beauty and Kiehl's, had sales in excess of EUR1 billion in China, Rinderknech said, adding that China has become the largest market for its Lancome, Helena Rubinstein and L'Oreal Men Expert brands.
L'Oreal's global comparable store sales increased over 7 percent to EUR26.9 billion (USD30.9 billion) last year, which was the largest annual growth since 2007, the Clichy-based firm said in its 2018 financial report.
Almost 50 percent of all YSL Beauty products in China are sold in cities or areas without physical outlets, Stephane Rinderknech said, adding that L'Oreal China wants to deepen its digital interaction with clients.
The company has also found a new consumer group. Sales of male grooming products on e-commerce platform Tmall jumped 56 percent last year, according to its data. Chinese men are paying more and more attention to their appearance and they value skincare and cosmetics in their daily lives, the firm added.
Editor: Emmi Laine