L’Oreal India aims to double its business in the next three-five years on the back of growing disposable incomes and per capita spends on beauty products. The company, known for brands such as L’Oreal Paris, Garnier, Maybelline New-York, and NYX Professional Makeup, is bullish on the India consumption story.

This comes at a time when the size of the beauty category is pegged at about $10 billion and growing at about 10 per cent year on year. 

L’Oreal’s global management had, in February, said that the the India business is at about€500 million in 2022 and expected to go upto €1 billion in the foreseeable future. Aseem Kaushik, Managing Director, L’Oreal India, told businessline, “We aim to grow atleast twice the speed of the market, which is expected to grow at 8-10 per cent and we believe we can get to €1 billion in the next three-five years.”

“There are 250-odd million consumers that earn $20 per day and this base is expected to grow to about 310 million in the next three years. Also, disposable income is expected to grow at 15 per cent CAGR. The beauty category is still in its nascent stage. So, we have a huge headroom for growth as the population of the country becomes more affluent, overall penetration, consumption and propensity to buy beauty products is going to keep increasing,” he added.

L’Oreal has had a presence in India for close to three decades now and it is among the top two players in the category. The company’s consumer portfolio, which includes brands such as L’Oreal Paris and Garnier, is sold through 10 lakh outlets, while its professional portfolio is used at over 50,000 salons. 

“One of the barriers we had was to find the affluent consumers, who are spread across the country. But in the post-Covid times, every consumer in India is connected digitally. Now, we can talk to consumers across the country about our brands, give them advice, solve their concerns and bring to them the latest global trends,” he explained, adding that the company will continue to launch relevant innovations for Indian consumers.

Distribution strategy

The company has recently launched its L’Oreal Dermatological Beauty division in India. “This is being spearheaded with the launch of CeraVe. We see a huge growth opportunity for the dermacosmetics segment, which is just 5 per cent of the beauty industry currently,” Kaushik added.

The beauty major is also sharply focusing on expanding the distribution of its luxury portfolio led by fragrances category. This includes brands such as Lancome, YSL, Prada, Giorgio Armani, Ralph Lauren, Diesel among others.

“Our distribution strategy is to have a strong presence across both online and offline channels. The real opportunity that is unfolding in front of us is through online. We are playing both the games with D2C sites and have a strong presence across e-commerce (marketplaces),” he added.

Responding to a query on the rural opportunity, Kaushik said, “Rural and urban consumers are today connected to the same digital platforms and social media sites and have the same aspirations. There is still a huge untapped opportunity in urban regions and we are focusing sharply on this opportunity. At the same time, we are accessible to consumers across the country through the online channel.”