PARIS — As L’Oréal’s Consumer Products division continues its rapid growth across the globe, maintaining a advantageous balance between premiumization and democratization is essential.

“We’re living in exciting times,” said Alexis Perakis-Valat, president of the division.

He was referring to how in 2022 the branch registered its best growth in 20 years, while in first-quarter 2023, the division posted its most stellar quarter by way of gains on record.

“What we like in regards to the growth is that it’s each balanced and broad-based — balanced between volume and value,” explained Perakis-Valat. “What’s interesting is one-third is volume and two-thirds is value. We wish this balance, because we want to steer premiumization, but at the identical time to democratize.”

That’s around the globe, because the division keeps gaining market share with all its brands and categories, in every region. 

“For us it’s a vital grand slam,” he said.

Perakis-Valat was speaking before setting off to Tokyo, where The Consumer Goods Forum began on Tuesday. L’Oréal’s Consumer Products division has partnered with that forum since 1988.

“There are two things on this event which are really meaningful for us,” he said. “First: How we will collaborate across the industry on very essential subjects.” 

Sustainability is top of mind as a difficulty needing to be tackled collectively. The CGF’s coalition around plastic waste is a way to such an end.

Outside CGF, L’Oréal helped found the EcoBeautyScore Consortium.

“We predict that informing consumers about sustainable consumption decisions will likely be paramount for the longer term, and it’s something that we now have to do as an industry,” said Perakis-Valat. “Leading sustainable consumption at scale all over the place on the earth is something that is amazingly essential to us.”

For L’Oréal, the second key a part of the event is how the group can work with retailers to grow beauty collaboratively. 

“It’s an occasion to deepen these partnerships,” he said. “Beauty is an offer-driven category greater than ever. We’ve got to be two to tango.” 

On a geographic basis, one-third of L’Oréal’s Consumer Products division’s growth stems from emerging markets, including Latin America, Southeast Asia, India, sub-Saharan Africa and the Middle East. 

“These are regions for the longer term,” said Perakis-Valat. “But Europe can also be on fire. The U.S. is doing thoroughly, and China — after a troublesome start of the yr because they were still in the midst of COVID[-19] — appears to be steadily picking up. So it’s very balanced by region, by category.” 

The manager noted the return of color cosmetics.  

“In all places on the earth, we’re seeing makeup [sales] significantly over 2019,” he said, talking about pre-pandemic times. “We’re also growing very fast on hair care, due to premiumization. We’re growing fast on skincare.” 

L’Oréal’s premiumization strategy has been informed largely by a worldwide insight pointing to how digital and social media have raised the extent of individuals’s expertise — and due to this fact desire — for value-added beauty all over the place.  

The variety of online beauty videos was up 40 percent last yr, when there have been 1.6 billion more “beauty” searches on Google. 

“The more you recognize in regards to the category, the more you’re demanding,” reasoned Perakis-Valat. “And the more you’re demanding, the more you’re able to pay a bit more to get more value added. 

“After all, it’s essential that you simply get bangs in your bucks,” he said. “That’s why we’ve pushed a number of disruptive and valorized innovation. Individuals are able to pay more for those who offer them more. That’s what’s explaining this common surge of volume and value — especially for brands that provide more.” 

In skincare, for example, the penetration of serums, a pricy category, has doubled prior to now three years in most countries — those which are developed, comparable to the U.S., in addition to emerging countries, like Brazil or India. 

At CGF in 2022, L’Oréal presented to its partners three products: Elseve Pro Bond Repair hair care, from L’Oréal Paris; Maybelline Superstay Vinyl Ink, a long-lasting shiny lipstick, and Garnier Good everlasting hair color that’s 98 percent natural and comes with a latest application gesture. 

Perakis-Valat called all three “super disruptive” and premium.   

“One yr after, they’re huge successes,” he said, describing the Consumer Products division’s strategy as a combination of world visions plus local savvy and expertise.  That is supposed to nurture brands like L’Oréal Paris, Garnier, Maybelline and Nyx to stay sharp and global, fueled by innovation. 

“Good ideas can come from all over the place,” said Perakis-Valat. 

Take for instance the world’s bestselling mascara, Mascara Lash Sensational Sky High, from Maybelline, which was designed within the U.S. then launched there three years ago. 

“Great ideas travel,” said Perakis-Valat. “Now, it’s also becoming the bestselling mascara in Japan. It’s the identical great idea, the identical great name, with a pack that could be a bit more premiumized, and with a wiper, a formula, a brush which have been specifically designed for North Asian lashes.”

The mascara has found success in China as well, he said.

Garnier Brilliant Complete Vitamin C Booster Serum was developed in Southeast Asia and have become a success there before being launched in other emerging markets. It’s subsequently an enormous seller in places comparable to Mexico, the Middle East and Brazil — in addition to in Europe. 

“We take insights from all over the place on the earth, and at the identical time we use our clout and our global organization to transversalize ideas, still paying a number of attention to adapting formulas, packaging and formats to the precise needs of consumers,” said Perakis-Valat.

Such successes mix science and magic, he believes.

“One of the vital powerful engines is the L’Oréal culture,” explained Perakis-Valat, underlining his point by quoting François Dalle, a former group chief executive officer, who famously said: “Seize what’s starting.” “That is engrained in our culture.

“We have now a vision of beauty which is global, multichannel and multicategory,” continued Perakis-Valat. “If people see that something is working somewhere, we’re making it known very fast.”

Tech, he believes, can play a vital role “to actually create beauty for every at scale.”

“Tech is a unbelievable technique to put service in a self-service environment, and to assist billions of consumers around the globe navigate the wonder jungle to search out the fitting routines, the fitting [order] of products for them,” he said.

Perakis-Valat mentioned the likes of Garnier’s Skin Coach AI or L’Oréal Paris’ Colorsonic at-home hair color device.

Today, the Consumer Products division owns 12 percent market share globally.

“So we now have tons of room to grow,” said Perakis-Valat. “Beyond our market share, I actually imagine that this overall elevation of the market, by way of expertise, knowledge and desire, is amazingly powerful.”