Latest news with #VismaySharma
Yahoo
2 days ago
- Business
- Yahoo
L'Oreal sees Middle East and Southeast Asia as next growth engines as China slows: ‘Eventually demographics have to win'
For more than a decade, China's aspirational shoppers, spurred by a fast-growing economy and rising wages, snapped up products from cosmetics giants like L'Oreal, Estee Lauder, and Shiseido. Before the COVID pandemic hit, China appeared set to overtake the U.S. as the world's largest makeup market. Those boom times are over, as more Chinese consumers now turn to up-and-coming local brands, like Mao Geping and Florasis. L'Oreal's sales in Mainland China dropped last year, shrinking its overall North Asia sales by around 3%. The Chinese market, the bulk of the firm's North Asia revenue, now accounts for 17% of group sales, down from 23% in 2022. The French firm continues to call China an important market, but has reportedly started cutting its retail workforce due to slower Chinese demand. As China stagnates, L'Oreal is now looking to regions, like the Middle East and Southeast Asia, as a source of growth. SAPMENA—L'Oreal's term for 'South Asia Pacific, Middle East, and North Africa'—will soon 'play a much bigger role' when it comes to beauty, says Vismay Sharma, who oversees the region for the French cosmetics firm. L'Oreal, No. 91 on Fortune's Europe 500, reported sales of 1.1 billion euros ($1.19 billion) for the first quarter of 2025, up 12.2% year-on-year, across SAPMENA and Sub-Saharan Africa (SSA). That's still small compared to other regions, sitting far behind Europe, North America and North Asia. But while SAPMENA-SSA only contributed 9.2% of L'Oreal's quarterly revenue, it was the only region to log double-digit growth. SAPMENA covers a huge swathe of the globe, stretching from Morocco all the way down to New Zealand just under 19,000 kilometers away. The region's 35 markets cover 3 billion people, or about 40% of the world's population, yet only accounts for 10% of global beauty sales. 'It has to come together, and eventually demographics have to win,' Sharma says. SAPMENA's quick growth doesn't surprise Sharma. 'The consumers in this part of the world are about 5 years younger than the rest of the world, live in aspirational societies and in economies that are growing fast,' he says. China has proved to be a tricky market for global cosmetics firms post-pandemic. Sluggish China sales have dragged down the financial results of U.S. firm Estee Lauder and Japan's Shiseido. A sluggish economy and stagnant consumption are partly to blame. But there's also new competition. 'C-Beauty' brands are starting to pick up steam among Chinese shoppers, with new brands going viral on Douyin, the Chinese version of TikTok, and other social media platforms. (L'Oreal is paying attention, investing in local Chinese brands like To Summer) Still, Sharma thinks China offers lessons for SAPMENA. Southeast Asia, like China, has highly connected consumers who are used to e-commerce and livestreaming. For example, Sharma notes that over 50% of L'Oreal's business in Vietnam comes from e-commerce. This is less true of the Middle East and North Africa. 'When you look at the ecosystem of beauty over there, you still don't have TikTok Shop. They're still a few years behind platforms like Shopee, like Lazada,' he says. Yet consumers in the Middle East share similar preferences to those in Southeast Asia. 'Expectations for beauty are very similar. We can see aspirations in terms of kind of hair, skin, lips, and eyes,' Sharma says, pointing to a preference for longer black hair as an example. That gives L'Oreal a chance to grow in the region. 'Our ability to create content at scale in the GCC becomes a huge advantage,' Sharma says. This story was originally featured on
Gulf Business
26-02-2025
- Business
- Gulf Business
L'Oréal's Vismay Sharma on beauty tech, sustainability and innovation
Image: Supplied As the world's leading beauty company, L'Oréal continues to push the boundaries of innovation. From AI-powered skincare diagnostics to groundbreaking advancements in sustainable packaging, the company is shaping a more personalised and eco-conscious industry. We recently spoke to Vismay Sharma, president of Here are excerpts from the chat. Tell us about L'Oréal's participation at the recent LEAP show. Science, innovation and technology have always been at the core of what we do. If we look at the history of L'Oréal, it was founded 116 years ago by a scientist, Eugène Schueller. Today, we have more than 4,000 scientists working on creating patented molecules, and we have also embarked on a significant digital transformation journey. A few years ago, we recognised the disruptive potential of emerging technologies: Web3, the internet of things, artificial intelligence (AI), and generative AI. Given our deep roots in science and innovation, we decided to fully embrace these technologies and establish ourselves as a leader in beauty tech. Beauty tech is about integrating cutting-edge technology with beauty to create outstanding experiences for consumers and drive sustainability. We now have over 8,000 digital and data experts who are pushing the boundaries of technology, ensuring that we enhance the consumer experience. LEAP was a strategic choice for us because it brings together the most advanced technology leaders. Visitors at the event had the chance opportunity to connect with our experts and explore more than 20 innovations, diagnostic tools and solutions. We also showcased our Big Bang Beauty Tech Innovation Program, which we launched in the region. The programme is designed to foster partnerships and collaborations., as we firmly believe that solving the big problems of tomorrow requires working together. Last year, the programme attracted 1,000 startups, with 600 coming from the Middle East alone. The three winners are now engaged in commercial pilot projects with us, and this year, we are expanding it further across different regions, with a grand finale in Singapore in November. How does technology intersect with sustainability in the beauty industry, and how is L'Oréal leading this transformation? There is often a fear that AI and technology will eliminate jobs, but we see technology as a force for good — enhancing lives, solving global challenges, and driving sustainability. As a company that has always prioritised science and innovation, embracing technology is natural for us. Technology helps us understand consumer needs, accelerate product development, improve formulation efficiency, and enhance logistics. For example, we leverage AI to create virtual beauty advisors that provide personalised recommendations. We've also developed the HAPTA makeup applicator, which enables people with limited motor skills to apply lipstick and mascara more easily. Another breakthrough is our AirLight Pro hair dryer, which uses infrared rays instead of traditional heating coils. This innovation is not only better for hair health but also reduces energy consumption, benefiting the planet. Sustainability is embedded in everything we do. We are focused on reducing water consumption, cutting down emissions, and using green science for our formulations. For example, through partnerships, we've developed solutions that help salons reduce water consumption by up to 70 per cent. Technology enables us to reimagine beauty with a lower environmental footprint. How does sustainability influence decision-making at L'Oréal, from ingredient sourcing to packaging, and what are the key areas of focus in your sustainability strategy? Sustainability is a non-negotiable priority for L'Oréal and deeply influences every aspect of our operations, from ingredient sourcing to packaging. At the start of this decade, we launched 'L'Oréal for the Future', a comprehensive programme that sets ambitious environmental and social goals. Our sustainability strategy is divided into three key areas: 1. Our footprint: We focus on reducing the environmental impact of our activities. For example, by 2025, we committed to using 100 per cent renewable energy across all our sites, and we achieved this milestone by 2023. We're also ensuring that 100 per cent of our packaging is recyclable or compostable, and we're sourcing ingredients through responsible methods. Green science is revolutionising our formulations, and we're investing heavily in research to create high-performance, sustainable beauty solutions. 2. Our extended ecosystem: This includes our partners, distributors, retailers, and even consumers. We're working to educate and empower consumers to make sustainable choices, especially in regions where sensitivity to sustainability issues is lower. For instance, we're launching a water-saving tool to address water stress in areas most impacted by climate change. 3. Solving global challenges: We're addressing critical issues such as climate change, water stress, and economic and social mobility. In 2021, when my region was established, we placed responsibility at the heart of every decision. We're positively impacting over 20,000 people annually through community initiatives and aim to create employment opportunities for 100,000 people in our region by 2030. Additionally, we're working on coral reef regeneration in Australia and mangrove restoration in Southeast and South Asia. Technology plays a crucial role in our sustainability efforts. We use AI to optimise formulas, blockchain for transparency in ingredient sourcing, and digital tools to educate consumers on sustainability. By integrating sustainability with technology, we're driving meaningful change while continuing to create the best beauty experiences for our consumers. This holistic approach ensures that sustainability is embedded in every decision we make, from sourcing ingredients to designing packaging, and ultimately, in how we contribute to solving global challenges. How do you address the challenge of consumer sensitivity to sustainability issues in your region? In this part of the world, consumers are generally less sensitive to sustainability issues compared to other regions. This places greater responsibility on organisations like L'Oréal and media partners to educate and empower consumers to make sustainable choices. We're actively working to educate consumers on reducing their environmental impact and making responsible consumption decisions. For instance, if the region's three billion people were to consume like American consumers, who have the largest environmental footprint, the world's resources would be depleted. Therefore, we're focused on fostering a sense of responsibility and promoting sustainable consumption practices. Which beauty categories are the strongest in your region, and how do you maintain leadership in these areas? We operate across all beauty categories — skincare, haircare, hair colour, fragrance, and makeup — and hold strong positions in most. Skincare is our largest business, and we lead in dermatological beauty with brands like La Roche-Posay. We're also number one in luxury and professional beauty in the region. Fragrance and makeup are the most dynamic categories, while haircare, particularly hair colour, remains a forte for us, though it's slightly less dynamic compared to other categories. The beauty market in this region is growing at nearly 15 per cent, and consumers are increasingly seeking technologically advanced, sophisticated products. E-commerce has also played a significant role in driving awareness and accessibility. Given L'Oréal's presence in the SAPMENA region, what key trends have you noticed among consumers here? This is by far the most dynamic region in the world, with 40 per cent of the global population. The average age here is just 27, compared to 33 or 34 in many other regions. This young population is tech-savvy, optimistic, and quick to embrace innovations. Unlike in developed markets where consumers may be more hesitant, people here adopt technology almost instantly. We see this in the rapid growth of platforms like TikTok and e-commerce. Beauty trends are evolving fast, and digital interactions are shaping purchasing behaviour in unprecedented ways. How has the male beauty and skincare market evolved in your region, and what trends are you seeing? Men in this region have always been more conscious about grooming and skincare compared to other parts of the world. Historically, they've used products like shampoos and skincare items borrowed from female family members. Fragrance, in particular, has been a significant category, with men mixing traditional and modern scents. With the rise of social media and technology, men are becoming more aware of skincare needs, such as sunscreen and acne solutions. For example, we created Garnier Men in India, which has become a leading skincare brand for men in the region. Men are now realising they can look even better with the right products, and we're seeing very positive trends in this segment. What is your strategy for driving growth in the region, especially during key cultural events like Ramadan? Our strategy is centred on understanding consumer needs and creating hyper-localised content. We've built capabilities to develop products tailored to local preferences and to run campaigns around key cultural events like Ramadan, Diwali, Christmas, and Chinese New Year. For example, last year's Ramadan campaigns were highly successful, and we're replicating that approach this year. We also leverage learnings from different markets — retail expertise from the Middle East and e-commerce best practices from Southeast Asia — to strengthen our position across the region. This cross-regional sharing of knowledge and strategies has been instrumental in our growth and market share gains. As a leader, what drives you and L'Oréal to achieve better results and maintain leadership in the beauty industry? L'Oréal's leadership is driven by a century-long dedication to our mission of creating beauty that moves the world. Since the turn of the century, we've placed a stronger emphasis on responsibility. Despite being the largest beauty corporation, we maintain a startup mindset, always behaving like a challenger. We're open to ideas, partnerships, and collaborations, constantly seeking inspiration from external sources like startups, Alphabet, and Microsoft. Humility is key to our leadership. We acknowledge that there's always room for improvement and strive to learn from others. This mindset keeps us innovative and forward-thinking. I'm driven by my team and their passion. Every day, I learn from the talented and intelligent people around me, and I'm motivated to have a positive impact on consumers, communities, and the planet. What initiatives are you most passionate about that drive positive change in the communities you operate in? One initiative I'm particularly passionate about is 'Beauty for a Better Life'. This programme empowers women from economically challenged households by teaching them beauty skills like hair cutting, colouring and makeup application. We then help them find employment. We've expanded this programme to countries like Vietnam, Indonesia, and India, to impact 100,000 women. These initiatives excite me because they create tangible, positive changes in people's lives. Finally, where do you see the beauty industry heading in the future? The future of beauty is deeply intertwined with technology. AI-powered personalisation, virtual beauty advisors, and sustainable innovations will continue to redefine the industry. We are moving towards a world where beauty is more inclusive, accessible, and responsible. L'Oréal will remain at the forefront of this transformation, leveraging technology to empower consumers and protect the planet. We are excited about what's ahead and look forward to working with partners who share our vision for the future of beauty tech. Read:
Yahoo
10-02-2025
- Business
- Yahoo
L'Oréal intensifies startup focus and investment in beauty innovation across SAPMENA region
2025 Big Bang competition for Beauty Tech innovation adds new "Science for Beauty" theme, expands to Australia and New Zealand SINGAPORE, Feb. 10, 2025 /PRNewswire/ -- L'Oréal has launched the 2025 Big Bang Beauty Tech Innovation Program across the South Asia Pacific, Middle East and North Africa (SAPMENA) region, including Singapore. Startups will compete for the opportunity to work with L'Oréal in a commercial pilot with one of the Group's 37 international brands, tap into potential exposure in 35 markets across the SAPMENA region, and embark on a year-long mentorship program with senior executives from L'Oréal and the program partners. The biggest Beauty Tech open innovation competition of this geographical scale, the competition expands this year to include Australia and New Zealand. Startups will address one of five challenge themes, including a new "Science for Beauty" theme introduced in 2025, alongside Consumer Experience, Content & Media, New Commerce and Tech for Good. Vismay Sharma, President of L'Oréal SAPMENA Zone, said, "With its dynamic startup ecosystem and tech-savvy consumers, we're confident that the SAPMENA region has immense potential to be a driving force in beauty innovation. The Big Bang Beauty Tech Innovation Program opens opportunities for us to discover, support and nurture the next generation of innovators in the beauty industry. By working with promising startups to co-create and co-develop beauty tech and science solutions, we can accelerate the pace of innovation and elevate the beauty experience for consumers in the SAPMENA region." With its vibrant and fast-growing consumer base, SAPMENA – home to 40% of the world's population – presents massive opportunities for startups. Over 60% of the region's young, digitally native consumers shop online weekly and are driving the growth of the beauty sector. SAPMENA's startup ecosystem is also booming, with over 625,200 startups and more than 245 unicorns, making it one of the most dynamic markets for beauty innovation. L'Oréal is dedicated to fostering a culture of innovation. Fast Company named L'Oréal in its Top 50 2024 Best Workplaces for Innovators list and winner of the Beauty and Fashion category, in recognition of its commitment to encourage and develop innovation at all levels. About the Big Bang Beauty Tech Innovation Program in SAPMENA The biggest Beauty Tech open innovation competition of this geographical scale, the Big Bang Beauty Tech Innovation Program seeks to discover, support and nurture promising startups from the South Asia Pacific, Middle East and North Africa region. The competition is open to startups from countries including United Arab Emirates, Saudi Arabia, India, Singapore, Malaysia, Indonesia, Thailand, the Philippines, Vietnam, and now Australia and New Zealand. Startups will be given the opportunity to develop their pilots in Beauty Tech innovation in one of five challenge themes: Consumer Experience, Content & Media, New Commerce, Tech for Good and Science for Beauty. The regional semi-finals will culminate in a SAPMENA Grand Finale on 5 November 2025 where up to ten finalists will vie for the top spots. Judges will comprise senior executives from L'Oréal and the program partners. The top three SAPMENA Grand Finale winners will win a L'Oréal-funded commercial pilot opportunity and a year-long mentorship program with senior executives from L'Oréal and the program partners. In 2024, program partners had included Accenture, Google and Meta. Startups who prove successful pilots in SAPMENA could have the opportunity to work with L'Oréal globally. With L'Oréal SAPMENA as a launchpad, startups could tap into an extensive network of partners and market insights. Key dates: Submission deadline: 30 May 2025 Regional semi-finals (online): August/ September 2025 Middle East India Southeast Asia Australia and New Zealand SAPMENA Grand Finale in Singapore (in-person): 5 November 2025 Startups passionate about creating the future of beauty with L'Oréal are encouraged to apply now on the competition website by the submission deadline of 30 May 2025. About L'Oréal South Asia Pacific, Middle East, and North Africa (SAPMENA) Zone Home to 3 billion people and 40% of the world's population, the South Asia Pacific, Middle East & North Africa (SAPMENA) Zone is a major growth engine for L'Oréal and a global talent hub. The SAPMENA Zone was formed in 2021 to drive focus on consumer needs and growth in many of the world's most populous, young and fast-growing economies. Across 13 entities and 35 markets spanning New Zealand to Morocco, the L'Oréal SAPMENA Zone is reinventing beauty experiences for our consumers through a portfolio of over 30 international brands and game-changing Beauty Tech innovations. Our business model is built on responsible and sustainable growth, with commitments which focus on three key areas – the planet, the people and our products. About L'Oréal For 115 years, L'Oréal, the world's leading beauty player, has devoted itself to one thing only: fulfilling the beauty aspirations of consumers around the world. Our purpose, to create the beauty that moves the world, defines our approach to beauty as essential, inclusive, ethical, generous and committed to social and environmental sustainability. With our broad portfolio of 37 international brands and ambitious sustainability commitments in our L'Oréal for the Future program, we offer each and every person around the world the best in terms of quality, efficacy, safety, sincerity and responsibility, while celebrating beauty in its infinite plurality. With more than 90,000 committed employees, a balanced geographical footprint and sales across all distribution networks (ecommerce, mass market, department stores, pharmacies, perfumeries, hair salons, branded and travel retail), in 2024 the Group generated sales amounting to 43.48 billion euros. With 21 research centers across 13 countries around the world and a dedicated Research and Innovation team of over 4,000 scientists and 8,000 Digital talents, L'Oréal is focused on inventing the future of beauty and becoming a Beauty Tech powerhouse. More information on View original content to download multimedia: SOURCE L'Oréal Sign in to access your portfolio
