China’s economy may be set for a gradual slowdown, although the entire world’s largest cosmetics company isn’t worried about business inside country being negatively affected.
Instead, L’Oreal is usually pinning its hopes on the growing affluence of China’s middle class.
“The growth potential [is usually] I believe unlimited in China because of This kind of rise of [the] middle class,” L’Oreal China CEO Stephane Rinderknech told CNBC on the sidelines of the Fortune Global Forum in Guangzhou, China.
“If we can actually continue to be consumer-centric along with also to innovate in China for Chinese, as we do currently with our research along with also innovation center in Pudong, then the growth rate can be actually phenomenal in China … I’m very confident for next year,” he added.
Much of which has to do having a middle class with increasing purchasing power which has what Rinderknech called a “craving for beauty.”
While experts see headwinds to growth as China attempts to contain financial risks in its economy, L’Oreal was confident trends inside beauty along with also wellness space meant which Chinese consumers were unlikely to cut back on their demand for skincare along with also cosmetics products.
“I think the economy slowing down is usually maybe in GDP growth although I think we’re actually going towards quality … More quality [along with also] more sophistication of consumers. Consumers which want more along with also more beauty,” said Rinderknech.
Rinderknech also pointed to how the tech revolution was partially behind the growing demand for beauty along with also cosmetics products in China.
“China is usually much ahead inside digital revolution along with also the selfie is usually creating you actually be willing to improve your self-expression. This kind of is usually why [there’s] a boom in make-up, a boom in hair coloration [products]. You want to have your individual personality, your individual appearance, your self-expression. along with also This kind of is usually a huge trend we’re seeing in China, having a scale of hundreds of millions of people,” he said.