25th Anniversary for L’Oreal in China: 20% Growth in Two Consecutive Years

On the occasion of its 25th anniversary in China, L’Oréal (China) held the “L’Oreal China 25th Anniversary Press Meeting” in Shanghai on March 25, Beijing time, and released the new strategy of “Co-Evolution, Answer to the Future”.

This year, L’Oréal is celebrating its 25th anniversary entering in China. In the past 25 years, L’Oréal has been a witness, a participant and a beneficiary of the changing beauty market and consumer trends in China. In 2021, L’Oréal (China) released the first report of the opening year of the “HUGE Beauty Plan” proposing a new corporate evolution model “BEAUTY HUGEVOLUTION”. Shanghai has been upgraded to the headquarters of North Asia and is committed to become the global curator of “beauty consumption” .

On March 25, Beijing time, L’Oréal (China) held the “Co-Evolution, Answer to the Future – L’Oreal China 25th Anniversary Press Meeting” in Shanghai, China. Mr. Fabrice, President of L’Oréal North Asia and Chief Executive Officer of L’Oréal China, together with representatives of the Group’s management team, shared L’Oréal’s development history in China with the public through an online and offline multi-linked format.

“Co-evolution: Answer to the Future”

Today’s world is unpredictable, which fills us with hope. In this year, L’Oréal (China) turns 25 years old. Our history in China is from 0 to 1, FROM BIG TO HUGE.

In 25 years, we have gone from being a start-up to the largest beauty group in China now. the Chinese market is already the second largest market in the world for the whole group and one of the most strategic for us at L’Oréal.

In 2021, we launched our new strategy, which is unprecedented importance today. It is based on L’Oréal’s long-standing philosophy – which is to grasp small trends, play the first move, build on this foundation by trial and error, scale, learn, and create an ecosystem.

What has L’Oréal (China) done in 2021?

Beauty is the driver of win-win growth. 2021 saw L’Oréal deliver a very good performance in China – achieving more than 20% growth and double the growth rate compared to the whole beauty market. L’Oreal achieved 58% growth in the first half of 2021 compared to the first half of 2019 and 49% growth in the second half of the year. L’Oréal Paris ranked first among beauty brands and Lancôme ranked third in China’s Double 11(Chinese Shopping Carnival) with both brands exceeding $1.572 billion.

In 2021, L’Oréal Group achieved strong growth in all four divisions. May saw the opening of L’Oréal Paris’ first global flagship store in Shanghai. In July, Valentino Beauty brought a full range of products to the Chinese market.

Beauty is the inclusive force that empowers women. We are committed to empowering women not only within L’Oréal but also globally. In 2021, L’Oréal China, in partnership with the World Association of Leading Scientists, successfully organized the first “HER Forum” to explore solutions for a more inclusive workplace for women researchers.

Beauty is the force that guards the our earth, which has never been more important than today. In 2021, L’Oréal’s North Asia headquarters will be located in Shanghai. In China, the L’Oréal Group is committed to respecting biodiversity and protecting natural resources. Lancôme, the high-end beauty brand, is recycling 5 million empty bottles from June in 2020 to September in 2021. Armani, the high-end makeup brand, has reduced 55% of glass, 64% of plastic, 75% of metal and 32% of cardboard boxes through the design of reusable cans.

Beauty is the source of technological innovation and beauty is creative. In 2021, L’Oréal Group participated in the China International Import Expo in China. At the Expo, we brought a YSL lipstick printer that can print thousands of colors and a water-saving shampoo and conditioner, which was very popular with consumers.

What is L’Oréal (China) going to do in 2022 and in the future?

In 2022, we have proposed the CO-X model: CO-CREATE, CO-EMPOWER, CO-DEVELOPMENT, CO-PROTECT and CO-INVENT.

In the area of co-creation, we will bring new brand values. The Group’s Professional Products Division will work with stylists to create pioneering hair art. The Active Health Cosmetics Division will join forces with Chinese dermatologists and experts and the Chinese healthcare platform Jingdong Health to create a “Beauty Health” ecosystem.

We will also work with Chinese Internet giants Alibaba and Jingdong, Chinese short video social platforms TikTok and Kwai, and Chinese e-commerce platform Pinduoduo to create a new digital beauty experience. Together with nearly 100,000 Chinese KOLs, we will promote brand products and work with Chinese retailers to open up a new landscape of retail entities and reinvigorate the offline market.

Most importantly, we will also participate in the first Shanghai International Carbon Expo to contribute to the green and sustainable development of China.

Last but not least, we will create co-creative and a beautiful future.

“Create the future of professional hair beauty”

L’Oréal Professional Products Division is the founding division of L’Oréal Group. In 1907 our founder pioneered the development of the world’s first pollution-free haircolor cream allowing beauty-loving European women to dye their hair blonde.

In 1999, L’Oréal Pro Paris was one of the first brands of the Group to launch its business in China. We opened the first professional hairdressing academy with an average of over 10,000 hairstylists from all over China attending the offline training every year.

Through the influence of L’Oréal Pro Paris in China, we have produced one surprising result after another. The Professional Products Division has grown by more than 50% for three consecutive years and the Professional Products Division in China has entered the top three markets for L’Oréal worldwide.

In 2021, L’Oréal Paris PRO will be the No. 1 professional haircolor brand in China, while Kerastase is the No. 1 professional haircare brand in China. The “Ginger Series” of L’Oréal Paris, which was launched last year, is specially developed for Chinese young people. The “Ginger Series”, which is developed by the French laboratory’s patented Amenity Factor and the Chinese anti-hair loss tool Ginger Root Extract, precisely meets the pain points of Chinese Generation Z. The taste and texture of the products are tailored to the preferences and needs of Chinese consumers.

In the past two years, we have also done a very different experiment. We have opened L’Oréal Paris PRO global flagship salons in Shanghai, Beijing and Guangzhou, which is the first time in over 100 years that the brand has opened its own salons. For the hair industry, we want to use the flagship salons as a laboratory and incubator. Whether it’s a new product service that the brand is about to launch or a digital technology project, we incubate it in our flagship salon to bring its successful experience model to the whole industry.

Open R&I, “Co-invent” the Future

L’Oréal is a company rooted in science and technology, which itself was created by a chemist and scientist. So the essence of our heart has always been focused on science.

We consider R&D and innovation to be our pulse and our commitment to R&D and innovation is visible with the amount invested in R&D and innovation by L’Oréal consistently increasing in tandem with sales. 2021 saw the L’Oréal Group investing $162 million in R&D and innovation, representing 3.2% of our sales.

In China, we have also launched partnerships with Chinese startups and startup ecosystems. For the second year in a row, we launched the BIG BANG Beauty Tech Creation Camp, and the third edition of the Big Bang Beauty Tech Creation Camp was launched on March 25, Beijing time. In addition to working with these startups, we also worked with Chen Saijuan, an academician from the Chinese Academy of Engineering, to create the L’Oréal (China) Academician Workstation. We became the first Fortune 500 foreign company in Shanghai to have built an expert workstation with a team of Chinese academicians.

Next, we will launch an important ingredient – Boswellin, which has excellent anti-aging effects. And we will continue to develop new products, especially those designed and developed for men.

“‘Co’ is the Power Engin of Operations”

L’Oréal Group is the global leader in the beauty industry and the world’s number one beauty group.

We have 39 factories around the world. Among them, in China, we have two factories, located in Suzhou and Yichang, Hubei. The Suzhou plant mainly produces skin care and shampoo products for major brands such as La Roche-Posay, Cerave, Biotherm, Maybelline and L’Oreal Paris, while the Yichang plant mainly produces cosmetics for brands such as L’Oreal Paris, Maybelline and YueSai.

In addition, these two factories in China have also launched a comprehensive upgrade and transformation of Healthy Beauty. After the transformation, our production workshops will reach the level of clean room with 10,000 square meters meeting the food-grade manufacturing environment and providing a strong guarantee for the manufacture of natural formula products.

Nowadays, the Chinese e-commerce market has entered a period of rapid development due to the high degree of integration between online and offline led by the Internet, and Chinese consumers are paying more attention to experience and service. To meet the individual needs of Chinese consumers, L’Oréal (China) has also established its own intelligent distribution operation center in Suzhou, China.

In addition to caring for our consumers, we are also concerned about the plant on which we depend. Our Group has pledged to reduce its CO2 emissions, water consumption per unit of finished product and waste per unit of the finished product by 60% in 2020 compared to 2005. In fact, the Yichang plant in China has achieved 100%, 85% and 61% reductions respectively, meeting and exceeding the Group’s original commitment.

Today (March 25, Beijing time), L’Oréal launched its “Co-evolution: Answer to the Future” strategy in China, which is not only the product of the Group’s new mission “Creating Beauty, Making the World Move”, but also the result of its 25 years of wisdom in China. It is also the result of its 25 years of deep cultivation in China and is inseparable from the development trend of the Chinese market and the ever-changing needs of consumers. In the next 25 years, L’Oréal will continue to work hand in hand with everyone in China making China’s opportunities a global opportunity and creating beauty that moves the world together



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