A newly created market in South Asia, the Pacific and the Middle East will account for most of L’Oréal’s new business for the next decade – with men making up a large part of that, the French said. cosmetics giant.
The combined geographic zone – internally called SAPMENA – will cover 35 markets in South Asia Pacific, the Middle East and North Africa. The new zone, headquartered in Singapore, capitalizes on shared consumer trends and growth opportunities, said the region’s president, Vismay Sharma.
“This region, or SAPMENA as we call it … will become a major growth engine for us. This is where we will bring in the most number of consumers in the next decade,” he told CNBC on Wednesday.
The move also makes demographic sense, Sharma said. Collectively, the region is home to 40% of the world’s population with an average age of 28 years.
“More than 40% of consumers (in the region) are under the age of 25,” he said. “That makes it extremely exciting for us and a very strategic market for the future.”
The 112-year-old company is trying to adapt to changing consumer habits and new markets, despite holding up relatively well during the pandemic. Sales increased by 10.2% in the first quarter of 2021 and returned to pre-pandemic levels.
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However, Sharma said the coronavirus crisis has spurred certain categories, including health and wellness and the demand for sustainable products.
The demand for cosmetics for men has also increased significantly in recent times. Japanese beauty company Shiseido reportedly registered double-digit growth of one of its men’s makeup lines in 2020, as male consumers became more aware of their appearance during pandemic-induced video conferences.
Sharma said he expects interest in male cosmetics to continue to grow, especially in the SAPMENA region.
Especially in Asia, we can see that men are much more critical about their skin, about the scents they wear, about their hair
Vismay sharma
president (SAPMENA), L’Oréal
“In the past, men didn’t use enough beauty products – so penetration was much lower, per capita consumption was much lower, frequency of use was much lower,” he said.
Now, “especially in Asia, we can see that men are much more critical of their skin, of the scents they wear, of their hair,” he continued.
“This part is going to be extremely interesting. In terms of growth rates, we see significant growth coming from this part.”
Certainly, in absolute terms, however, women will continue to be a significantly larger consumer base for beauty products for the foreseeable future, he noted.