Breaking News

L'Oréal Pulls Brand from China

January 8, 2014

Garnier is out, Maybelline and L'Oréal Paris will stay

Suddenly, there's a rush to the exit of what, until months ago, was considered the world's fastest-growing consumer product market. Today, L'Oréal announced it was pulling its Garnier brand in China, just days after Revlon Inc. outlined plans to exit the country.

L’Oréal introduced Garnier to China in 2006. Now, the company will focus on marketing the L’Oréal Paris and Maybelline brands there. The announcement is the latest indication of a slowdown in Chinese demand. In May, Procter & Gamble said it has been losing market share in skin and oral care sales. And Revlon will cease operations and eliminate 1,100 positions in China.

Garnier accounts for about 1% ($20.4 million) of L’Oréal’s Chinese sales. China is the third largest cosmetics market in the world, with nearly $26 billion in sales and is expected to grow 63% for the five years to 2015, according to Euromonitor International.

“We believe this will enable our consumer-products division to accelerate its conquest of the Chinese beauty market,” Paris-based L’Oréal said in a statement. “We are committed to ensure a smooth transition process will be put in place for our employees and associates.”

The company’s nine-month Chinese sales rose 11%, L’Oréal said in October. The beauty market in the country is “slowing, although still dynamic,” the cosmetics maker said at the time.

Related End-User Markets:

blog comments powered by Disqus
  • Long Term Sustainability In the Nonwovens Market

    Long Term Sustainability In the Nonwovens Market

    August 23, 2016
    Learn more at Cleaning Products USA, Nov. 9-11, 2016

  • Fro Yo!

    Fro Yo!

    Tom Branna, Editorial Director||August 22, 2016
    Project Beauty dishes out Hairgurt, a line of vitamin-rich hair shampoos and conditioning masques.

  • TLC for Those Who Need It Most

    TLC for Those Who Need It Most

    Christine Esposito, Associate Editor||August 22, 2016
    New curriculum debuting at Bellus Academy helps estheticians treat a population that needs TLC.

  • Special Effects

    Special Effects

    Melissa Meisel, Associate Editor||August 1, 2016
    Fall 2016 color cosmetics reflect light and offer a focus on elements like pigment, slip and wear.

  • Sustainability is Omnipresent

    Sustainability is Omnipresent

    Christine Esposito , Associate Editor||July 1, 2016
    Industry stakeholders convene in New York City for Organic Monitor’s annual event

  • Perceived Perfection

    Perceived Perfection

    Christine Esposito, Associate Editor||July 1, 2016
    From primers to pressed powders, facial cosmetics help create the illusion of a flawless complexion.