11.07.12
Need more evidence that the world is moving East? L'Oréal's sales are expected to jumped more than 30% in Indonesia, southeast Asia's biggest economy this year and next, the company said as it opened a new plant in West Java.
L'Oréal is investing 100 million euros ($128 million) in the new plant that will have capacity for as many as 500 million units, four times more than the first and its only factory set up in the country in 1986. Despite the investment, L'Oréal lags its biggest competitors in the country. Unilever has a 38% share of the Indonesian beauty and personal care market, and Procter & Gamble has an 11% share, according to Euromonitor.
Overall, the company said third quarter sales rose 5.8% to $8.7 billion, due to gains by Yves Saint Laurent and Lancôme. That's better than the 5% gain that analysts had predicted. For the full year, CEO Paul Agon predicted that the luxury cosmetics market will rise 5-6%, and L'Oreal's own growth would be slightly higher.
"We are No.1 in this (luxury cosmetics) business...and we are slightly gaining market share." he explained. "The cosmetics markets is coming back to normal growth; it is not extraordinary, but it is positive, slightly positive, in Europe and the US," Agon said.
L'Oréal is investing 100 million euros ($128 million) in the new plant that will have capacity for as many as 500 million units, four times more than the first and its only factory set up in the country in 1986. Despite the investment, L'Oréal lags its biggest competitors in the country. Unilever has a 38% share of the Indonesian beauty and personal care market, and Procter & Gamble has an 11% share, according to Euromonitor.
Overall, the company said third quarter sales rose 5.8% to $8.7 billion, due to gains by Yves Saint Laurent and Lancôme. That's better than the 5% gain that analysts had predicted. For the full year, CEO Paul Agon predicted that the luxury cosmetics market will rise 5-6%, and L'Oreal's own growth would be slightly higher.
"We are No.1 in this (luxury cosmetics) business...and we are slightly gaining market share." he explained. "The cosmetics markets is coming back to normal growth; it is not extraordinary, but it is positive, slightly positive, in Europe and the US," Agon said.