L’Oréal, the beauty group headquartered in Clichy, France, says its India business is speeding up. In its consumer products division, L’Oréal reported double-digit growth in India.
The region that includes India, which L’Oréal calls South Asia Pacific, Middle East, North Africa and Sub-Saharan Africa, grew 19% like-for-like in the quarter. L’Oréal said India and Indonesia both gained speed, driven by haircare and skincare. In my travels in India, I see L’Oreal billboard at salons in second and third tier cities, not just in the top “major metros.” L’Oreal products are widely available in retail and the company advertises on television, online and print media.
According to a report from Business Standard, chief executive Nicolas Hieronimus said on the earnings call that the India business is making a strong turnaround. He credited better teams, more products made for India, faster online sales, and rising demand for haircare and skincare. L’Oréal is putting particular weight on “quick commerce” within online sales.
In dermatological skincare, CeraVe is entering new cities, and the company has launched La Roche-Posay, a second dermatological brand priced higher. L’Oréal expects the two brands to complement each other. Hieronimus described CeraVe as a young brand in India that is growing fast.
L’Oréal is also buying into local brands. It has completed the purchase of a majority stake in Innovist, a personal care company from India founded in 2019. Innovist sells the Bare Anatomy and Chemist at Play skincare and haircare brands, mostly through online channels. When L’Oréal announced the deal in June, it said Innovist’s founders will stay on as minority shareholders and keep running the business with L’Oréal India.
L’Oréal’s venture fund, BOLD, has also partnered with Nykaa, India’s largest beauty retailer, to take minority stakes in fast-growing beauty, personal care and wellness brands.
Why this matters
L’Oréal reports double-digit growth in India in its consumer products division, against 7% for the group, and it is spending on local brands and online channels to keep that going. American consumer-goods companies weighing India can read the results as a data point on where the growth comes from: products built for local shoppers, higher-priced skincare and quick commerce.
