Chinas Beauty Market Retail sales increased by 17% year-on-year Foreign cosmetics enterprises captured about 80% market share in key cities Cosmetics sales growth relatively slower in tier 1 cities 1400 18.7% 169%16%103 20% 170% 1000 8 15% 21.4 600 18.3 11.3 20082009201020112012 Sales value ■Ter1■Tier2■Tier3 Source National Bureau of statistics of China ANNUAL GROWTH LOREAL
China’s Beauty Market • Retail sales increased by 17% year-on-year • Foreign cosmetics enterprises captured about 80% market share in key cities • Cosmetics sales growth relatively slower in tier 1 cities 11.3 18.3 21.4 ANNUAL GROWTH Tier 1 Tier 2 Tier 3
China's beauty Market Shifting away from the traditional distribution channels Health and beauty retailers and online retailers replacing Grocery retailers and departmental stores retail value rsp 2011 Grocery Retailers -Hypermarkets 265 Non-Grocery Retailers -Health and Beauty Retailers 119 Chemists/Pharmacies --Parapharmacies/Drugstores -Other Health and Beauty Retailers 0.2 28.7 -Other Non-Grocery Retailers 0.1 Non-Store Retail 14.6 19 LOREAL
China’s Beauty Market • Shifting away from the traditional distribution channels Health and beauty retailers and Online retailers replacing Grocery retailers and departmental stores
China's Beauty Market Socioeconomic factors Lack of makeup culture: only 10%-15%of the market is Makeup products Increasing recognition to local brands TCM and Herbal Culture 百懂羚 草血护肤就用百雀羚 AUPRES 1000亿胞生命之题”一千细 阻若无龄美鼠新生 人
China’s Beauty Market: Socioeconomic factors • Lack of makeup culture: only 10%-15% of the market is Makeup products • Increasing recognition to Local brands • TCM and Herbal Culture
Company overview LOREAL
Company overview
L'Oreal Started in French in 1909 World's largest cosmetics company, with worldwi de sales of 22,5 billion in 2012 n 130 countries on five continents Unrivalled portfolio of 27 brands SHARINO EAUTY WITHALL 2 main divisions The Luxury product Division(LPD The Consumer product Division( CPD LOREAL
L'Oréal • Started in French in 1909 • World’s largest cosmetics company, with worldwi de sales of €22.5 billion in 2012 • In 130 countries on five continents • Unrivalled portfolio of 27 brands • 2 main divisions - The Luxury Product Division (LPD) - The Consumer Product Division (CPD)