L’Oreal global chief executive Nicolas Hieronimus believes that India’s younger generation is no longer obsessed with fair skin. Instead, they prefer brands that offer skin free of blemishes.
“Part of what we call brightening is eliminating spots that create irregularities,” Hieronimus explained to ET. This shift in mindset is a welcome change, as Hieronimus notes, “I think the young generation is changing and it’s good.”
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Historically, India has had a complex relationship with skin tone. Hieronimus points out that people working in the fields were often dark-skinned, while the nobles were untanned, leading to the belief that high society had fair skin. However, this mindset is changing, and the younger generation is more focused on achieving healthy, blemish-free skin.
Digitalisation bents perceived trends about beauty
Digitalisation has played a significant role in increasing awareness about beauty trends and products. Hieronimus notes that younger consumers, especially Gen Z, are far more conscious of what they use on their skin compared to millennials and Gen X. “Gen Zs are super experts. They are online and extremely aware of international brands, local brands, and the different routines. So, it’s accelerating,” said Hieronimus.
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L’Oreal has been present in India for three decades and has a significant market share in the hair colour segment. The company is now targeting an annual revenue of 1 billion euros in India in the next few years, when it expects the country to rank among its top 10 markets. Hieronimus believes that the stars are perfectly aligned in India, with stable politics, a dynamic economy, and a growing base of affluent middle-class consumers who are highly aware of global beauty trends.
Further, the Indian beauty market is highly competitive, with established firms like HUL and Procter & Gamble, as well as local brands like Minimalist, Sugar Cosmetics, and Plum. However, Hieronimus is confident that L’Oreal has the best cards to play, thanks to its focus on innovation and quality. “Anybody can put an ingredient in a product like salicylic acid or collagen. But consumers are more demanding about products and are not just settling for very basic things. That’s where L’Oreal has the best cards to play, and that’s where we really thrive,” he said.
L’Oreal achieves 1% annual sales growth in India
Currently, India accounts for just over 1% of L’Oreal’s annual sales of over 41 billion euros, making it the 15th largest market for the company worldwide. However, Hieronimus is optimistic about the company’s prospects in India, citing the country’s stable politics, dynamic economy, and growing base of affluent middle-class consumers. “There are 820 million internet users in India, and these people are connected. They are discovering products online in a country that is very stable and are optimistic. For beauty, confidence and optimism are very important drivers,” he said.
