L’Oréal Posts Slower Sales Growth In China, Faces Increased Competition

L’Oréal reported its revenue in China grew 12.4 percent to 12.05 billion yuan ($1.91 billion) in 2012, down from 18 percent in 2011. L’Oréal China chief executive officer Alexis Perakis-Valat said the drop in sales growth rate was due to the slowdown in the country’s cosmetics market. He said, however, that the company will continue growing, particularly in the country’s smaller cities, as well as in the cosmetics market and men’s skincare segment. At present, L’Oréal holds 14 percent of the cosmetics market in China; however, other cosmetics companies have been aiming at the market. Among these companies are Procter & Gamble, which has launched new cosmetics brands in the country, and Estee Lauder, which plans to launch a new brand.