(China Daily) With a resolute stance on China's integral role in the company's future, L'Oreal believes that "the next China is China" and "Investing in China is investing in our future", a senior executive of the French multinational told China Daily in an exclusive interview during the recently concluded 7th China International Import Expo in Shanghai.
Vincent Boinay, president of L'Oreal North Asia and CEO of L'Oreal China, highlighted the country's robust economic fundamentals, pointing out that consumption remains the principal driver of China's economic growth.
This, combined with the nation's resilience and rapid technological advancements, have bolstered L'Oreal's confidence in the Chinese market, he said.
Data from the National Bureau of Statistics showed that consumption contributed to 82.5 percent of China's GDP growth in 2023. Retail sales, a key measurement of consumer spending, grew by 4.8 percent year-on-year in October, up from the 3.2 percent growth in September.
"I am optimistic about the boundless potential of the Chinese market in the medium to long term. My optimism roots in China's core strengths, remarkable resilience and amazing technological development, among other factors," said Boinay.
Chinese consumers, according to the executive, are at the forefront of global trends, particularly in the beauty sector. Their increasing sophistication and demand for high-quality, effective and trendy products have positioned China as a global influencer. L'Oreal's current reach of 100 million Chinese consumers is poised to expand, with ambitious plans to cater to more than 500 million, including seniors, men and Generation Z.
"L'Oreal strongly believes that 'the next China is China' and has never ceased investing in the country," he said, adding that L'Oreal's strategic focus in China is threefold: beauty tech and innovation, consumer experience enhancement, and sustainability.
The company has a research and innovation team of 400 researchers in Shanghai, and China has emerged as a key innovation hub for L'Oreal' s beauty tech, inspiring global initiatives. Leveraging technology and data to create highly personalized products and immersive and seamless interactions, the company aims to provide good experience for consumers, the executive said.
Sustainability, too, is a priority, with L'Oreal committing to using 100 percent renewable energy in its Chinese factories and warehouses.
Regarding the restructuring of global industrial and supply chains, L'Oreal's recent establishment of Suzhou Smart Fulfillment Center in Jiangsu province, its very first of the kind, exemplifies the company's faith in China's growing role, Boinay said.
This center, integrating cutting-edge automation technologies, advanced digitalization systems and firm sustainability commitments, reflects China's call for developing new quality productive forces and sets a benchmark for operational innovations in the beauty sector, he added.
Source: By Liu Zhihua | China Daily | Updated: 2024-11-19 10:19
