L'oreal looking to become market leader in three years

Jochen Zaumseil, managing director for L’Oreal Asia-Pacific, said yesterday that over the next decade, about 500 million new customers were expected to enter the cosmetics, beauty and skin-care markets as more and more people are taking better care of themselves. In addition, consumers in Thailand are starting to spend more as the country’s GDP continues growing steadily.

He said that L’Oreal had witnessed satisfactory outcome in the Asia-Pacific market last year with revenue from the region, accounting for about 40 per cent of the group’s income. Plus, L’Oreal’s growth in the region and in Thailand was three times higher than in other markets, which has helped it garner a bigger share of the market.

"There is more room to grow for the company and we [L’Oreal Group] are aiming to become No 1 in the Asia-Pacific and Thailand. So we will continue to invest in our innovations, brands, products and the people here," Zaumseil said at the "Our World of Beauty ... Our Beauty for The World" event held to build confidence among its business partners.

L’Oreal Group is currently the second-largest cosmetics and beauty firm in the region, and is focusing on innovations, research and development to become the leader. In 2010, the group earmarked more than 665 million euros (Bt26.86 billion) for research and development, in order to create new products to meet customer demand.

Meanwhile, Umesh Phadke, who recently took over as managing director at L’Oreal Thailand, said that from 1999 the company has been enjoying a 17-per-cent cumulative growth rate, while the projection for this year is on the same track.

L’Oreal Thailand offers four product categories – professional, consumer, cosmetic dermatology and luxury beauty products.

Phadke added that strengthening both indirect and direct distribution channels would be a key strategy to help L’Oreal achieve its ambitious goal in the next three years.