L’Oreal hopes to accelerate its growth in India by making products specifically for the market, including those that draw insights from Ayurveda.
L’Oreal India, with revenues of Rs 1,600 crore last year, accounts for a tiny part of global revenues of €20 billion. The big markets for L’Oreal are the US, China and Japan.
“India is not in the top 10 currently. But it has been growing at 25-30 per cent over the last five years, driven by the growing aspiration of the middle class, even in small towns. India is among the top 3-5 markets in terms of growth rate,” says Dinesh Dayal, COO, L’Oreal India.
Dayal expects India to be among its top 10 markets globally by 2020.
L’Oreal’s best-selling brand Garnier introduced a hair colouring mixture in the tube form. This came out of the insight that Indians prefer to do frequent ‘touch-up’ at home. Indian consumers are also adept at mixing colours on their own with precision, while Western women make more frequent visits to the salon, explains Dayal.
The kajal from Maybelline is another product for the Indian market. Garnier also has a range of skincare products for Indian men – anti-sweat face wash and fairness cream.
The company, which also retails brands such as L’Oreal, Matrix, Lancome and Kiehls, wants to take this “Indovation” (Indian innovation) to the next level.
L’Oreal’s labs have plotted over 60 skin tones across the globe. Of this, 44 exist in India. Skincare products to suit the unique Indian climate and diverse skin tone are a big opportunity. Opportunities also exist in making hair products based on oil application of Indians.
The company recently opened a research centre in Mumbai. It is also setting up an advanced R&D centre in Bangalore to develop active natural ingredients for hair and skin products.
“We will look into Ayurveda to see if we can combine the efficacy of this ancient science with modern processes.”
Products developed out of this exercise could well find their way into the global portfolio as consumers across the world are increasingly looking for natural alternatives, says Dayal.