07 Jan 2014
L’Oreal recently announced that it is carrying out an extensive upgrade to its biggest plant in China to make it the largest make-up manufacturing centre in Asia-Pacific. This, and the fact that their Asia Pacific headquarters are in Shanghai, proves the confidence they have in the long-term prospects for the Chinese and Asian market.
L’Oreal is the largest cosmetics distributor in the world with revenue reaching close to USD2 billion for China alone. Research from S&P Consulting and Euromonitor International show that the Chinese make-up industry, that has maintained 15.4% annual growth over the past five years, is expected to see revenue double over the next few years.
The majority of L’Oreal products sold in China is manufactured in the country and half of the new plant’s output will be exported to Europe and other Asian countries. Supplying key markets like France implies extremely high manufacturing standards, which is testament to how the “Made in China” label has improved over the past decade. This is good for the reputation of “Made in China” products and for the Chinese consumer.
View the original article here.