L’Oréal is accelerating its expansion in emerging markets, particularly India, as rising disposable incomes and the rapid growth of e-commerce improve access to branded products.
India to Drive L’Oréal’s Consumer Base Expansion
L’Oréal’s Global Chief Executive Officer, Nicolas Hieronimus informed that the company expects 500 million new consumers to afford its products by 2030, with half of them coming from India.
“A few years ago, India lacked the distribution network and purchasing power for L’Oréal. Now, the market is ready, and we are accelerating our business,” Hieronimus stated.
Emerging Markets Fuel Sales Growth
Over the past four years, emerging markets have doubled their contribution to L’Oréal’s sales, now making up more than 16% of the group’s total revenue. The company sees a prime opportunity to expand, thanks to the rise of e-commerce and a growing middle class.
“Millions of young men and women can now access and purchase our products directly from their phones, rather than relying on small stores that previously lacked our full catalog,” Hieronimus said.
Untapped Potential in India
Despite its growth, India remains an untapped market for L’Oréal. Many of its products are not yet distributed in the country, leaving significant white spaces for expansion. “Last year, we launched CeraVe in India, but half of our luxury portfolio is still unavailable there,” Hieronimus noted.
Strengthening Market Presence
L’Oréal is now focused on deepening its presence and understanding emerging markets better. “We are at the beginning of our journey in these regions. Consumers can now both afford and access our products from their homes,” Hieronimus added.
India’s Beauty Industry on a Growth Trajectory
India’s beauty industry, the fastest-growing globally, is projected to reach $34 billion by 2028.
As reported by thehindubusinessline.com, a report by Nykaa and Redseer highlights how online penetration in core beauty categories is driving this growth, creating vast opportunities for brands like L’Oréal.
