A new market in the South Asia Pacific and the Middle East will account for most of L’Oreal’s new business over the next decade – men making up a large part of it, said the French cosmetics giant.
The combined geographical area – internally known as SAPMENA – will cover 35 markets in the South Pacific Asia, the Middle East and North Africa. Headquartered in Singapore, the new area comes in response to common consumer trends and growth opportunities, said Vismay Sharma, the region’s president.
“This region, or SAPMENA as we call it … will be a major engine of growth for us. Here we will get the largest number of consumers in the next decade,” he told CNBC on Wednesday.
The movement also makes sense demographically, Sharma said. Collectively, the region is home to 40% of the world’s population with an average age of 28 years.
“Over 40% of consumers (in the region) are under 25,” he said. “This makes it extremely interesting for us and a very strategic market for the future.”
The 112-year-old company is trying to adapt to changing consumer habits and new markets, despite relatively good resilience during the pandemic. Sales increased by 10.2% in the first quarter of 2021, returning to near-pre-pandemic levels.
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However, Sharma said the coronavirus crisis has stimulated certain categories, including health and health and the demand for sustainable products.
Men’s cosmetics have also seen a late increase in demand. Japanese beauty company Shiseido reportedly saw a double-digit increase in one of its men’s makeup lines in 2020, as male consumers became more aware of their appearance during pandemic video calls.
Sharma said interest in men’s cosmetics is expected to continue, especially in the SAPMENA region.
Especially in Asia, we can see that men are much more attentive to their skin, to the perfumes they wear, to their hair.
Vismay sharma
President (SAPMENA), L’Oreal
“In the past, men did not use enough beauty products – so the penetration was much lower, per capita consumption was much lower, the frequency of use was much lower,” he said.
Now, “especially in Asia, we can see that men are much more skilled about their skin, about the perfumes they wear, about their hair,” he continued.
“This part is becoming extremely interesting. In terms of growth rates, we see a significant increase coming from this part.”
Certainly, however, in absolute terms, women will remain a significantly larger consumer base for beauty products for some time, he said.