Company aims to cultivate a dedicated team to develop beauty brands

Girod made the remark as the company introduced the One L'Oréal strategy, which aims to cultivate a dedicated team to develop beauty brands that connect with consumers while also advancing social and environmental goals through the Groupe's sustainability commitment, "L'Oréal for the Future”.

Seeing the positive growth in Thailand's beauty and personal-care market, Girod highlighted a few key trends that will help the group maintain its leadership in the country, particularly in the skincare and makeup categories.

The trends involve the rise of the middle class, increased exposure to digital access, and an unparalleled demand for age longevity.

He explained that by 2030, more than 50 million Thai middle-class consumers will have significant purchasing power, driving the consumption of personal-care products. Meanwhile, digital access suggests that the group be more selective on digital channels in order to reach out to young consumers, and the need for longevity has prompted L'Oréal to continue developing its anti-aging expertise.

Furthermore, L'Oréal has launched the ambitious One L'Oréal strategy, with the goal of transforming Thailand's beauty landscape through its diverse portfolio of 15 brands in Thailand, Myanmar, Laos and Cambodia. This strategy focuses on employee development, business operations, and sustainability practices, ensuring alignment across all business divisions and central operations to drive long-term market growth.

Girod said that aside from cultivating a work culture that values employee recognition and well-being, the company strives to build beloved brands, highlight expertise in cutting-edge research, and attract new consumer demographics with innovative products and customised experiences that meet diverse needs.

Recognising that long-term success requires a strong team, L'Oréal is committed to developing well-rounded employees, increasing their potential and engagement within the organisation, integrating technology to optimise work processes, and creating an inspiring and efficient workspace, he added.

Thailand's beauty market saw a 12% increase last year, reaching a record 285 billion baht in the beauty and personal-care industry.

Skincare accounted for 113 billion baht, followed by haircare at 39 billion baht, makeup at 22.7 billion baht, and fragrances at 10.2 billion baht.

L'Oréal Thailand also plays an important role in the SAPMENA region (South Asia Pacific, Middle East and North Africa), outperforming the market with significant growth, while the entire SAPMENA region experienced a 23.2% increase.

Girod said he expected Thailand's market to grow in double digits this year, outpacing the SAPMENA region.

"Despite the fierce competition and challenges in the dynamic beauty market, 2023 was another successful year. Despite increased competition and changing consumer demands for innovative beauty solutions, L'Oréal Groupe in Thailand has consistently demonstrated its prowess and leadership in a variety of market segments," he said.

“Under the One L'Oréal strategy, L'Oréal will continue to propel all four business divisions, particularly skincare and makeup products, while maintaining their popularity in all market segments, both online and offline.”

The global beauty sector expanded by 8% in 2023, with L'Oréal Groupe experiencing its third consecutive year of double-digit growth at 11%.

L'Oréal's global operations in 2023 also marked a historic achievement in two decades, with sales rising to 41.18 billion euros (about 1.62 trillion baht, reinforcing the company's position as the world's leading beauty brand.

To demonstrate its commitment to sustainability, L'Oréal Groupe Thailand intends to reduce product waste, reduce carbon emissions, and implement meaningful social initiatives in 2024.

The move included promoting refill or recyclable packaging for more of its flagship brands, offering beauty-related workshop courses such as professional hairstyling skills, using more than 90% solar cells, and improving waste management.

In terms of growth targets over the next three years, Girod expects to introduce more skincare and makeup brands to the Thai market, reveal new innovative beauty technology and products, and expand more gradually in Laos, Cambodia, Vietnam and Myanmar.