L’Oréal invests in second Chinese skincare brand as local competitors gain ground
Cosmetics giant L’Oréal has taken a minority stake in Chinese skincare brand Lan, marking its second investment in China in recent months amid growing competition from domestic “C-Beauty” brands. The company did not disclose the size or cost of the stake.
Vincent Boinay, L’Oréal North Asia President and China CEO, said the move underscores the strategic importance of China to the company’s global growth. “We firmly believe investing in China is investing in the future, and we will continue to cultivate the Chinese market, work with more Chinese brands to create a beautiful future and meet the expectations of sophisticated Chinese consumers,” he said, News.Az reports, citing Reuters.
The investment follows L’Oréal’s recent purchase of a 6.67% stake in Chando for 442 million yuan ($62 million), as disclosed in Chando’s Hong Kong IPO prospectus last month.
China’s $75 billion beauty market has become increasingly challenging for international players. Domestic C-Beauty brands have captured a growing share, benefiting from faster product iteration, aggressive marketing, and consumer demand for innovative skincare concepts. Overall market growth has slowed due to a prolonged property crisis and job stability concerns.
Experts say investing in well-known local brands allows L’Oréal to tap into the momentum of C-Beauty while strengthening its presence in smaller cities and mass-market segments. Chando, China’s third-largest homegrown beauty company by retail sales, and Lan both emphasize natural and clean ingredients, appealing to health-conscious consumers.
Following L’Oréal’s third-quarter earnings last month, CEO Nicolas Hieronimus said the group’s China business grew around 3%, its first increase in two years. Analysts say stakes in Chando and Lan could help L’Oréal recover market share in China without directly competing with its premium core brands.
Ben Cavender, managing director at Shanghai-based China Market Research Group, noted that international brands face “a tremendous amount of pressure from domestic brands that are iterating new products faster and aggressively marketing new skincare ingredients, concepts, and routines.”
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