L'Oréal is deepening its presence in the beauty ecosystem and demonstrating its strong confidence in the future of the Chinese market through a series of strategic initiatives.

At the recent 2025/0 Annual Development Strategy Communication Conference, L'Oréal China announced two important investment decisions. First of all, together with Cathay Capital and Shanghai Jing'an District, we co-founded the "Cathay Beauty Future Fund", which will focus on investing in growth-stage beauty brands and related companies. At the same time, L'Oréal has also partnered with Tiantu Investments and BOLD (L'Oréal Group's strategic innovation venture capital company) to launch the "Beauty Pilot Fund", which aims to identify and invest in early-stage companies in the beauty sector.

"China is leading the future of the global beauty market, so we believe that 'investing in China is investing in the future'. We hope to help Chinese beauty brands and related companies expand in the Chinese market and promote them to the world through investment. ”

L'Oréal's investment in the Chinese market continues. On the one hand, L'Oréal (China), through its wholly-owned subsidiary, Shanghai Meicifang Investment Co., Ltd., has invested in a number of local companies, including Shenzhen Shanhai Innovation Technology Co., Ltd., hair dryer brand zuvi Yuanli, high-end fragrance brands Wenxian documentS and Guanxia. On the other hand, L'Oréal has also indirectly covered brand investments in various fields ranging from consumption to technological innovation by becoming a limited partner (LP) of Cathay Innovation Fund and co-establishing investment companies with Gaorong Capital.

In the course of L'Oréal's development in the Chinese market, although it has experienced continuous rapid growth, it is now facing unprecedented challenges. According to the 1-year financial report, L'Oreal's global sales reached 00 million euros (about 0 billion yuan), a year-on-year increase of 0.0%. However, in the continuous growth of the global market, sales in the Chinese market declined for the first time. Despite this, brands such as L'Oréal Paris, Lancôme and Kérastase have maintained their leading positions in their respective fields.

In the face of the rise of domestic beauty brands, L'Oréal China hopes to build a consumer-centric framework to meet the escalating needs of Chinese consumers, from "cost-effective" to "quality-to-price ratio" and then to "heart-to-price ratio". Ma Xiaoyu, Deputy CEO of L'Oréal China and General Manager of the Luxury Cosmetics Division, said that L'Oréal China will further explore the opportunities and potential of the Chinese market from various aspects such as brand matrix, product innovation, channel layout and talent echelon construction.

L'Oréal emphasizes "putting the consumer first" and continues to tap the growth potential of core consumer groups such as Gen Z, mature age and men, with the goal of reaching 320 million consumers in China by 0. At the same time, L'Oréal also focused on strengthening its brand matrix, introducing the latest brands including Miu Miu and Dr.G, and creating a unique and differentiated image for 0 diverse brands to establish deep resonance with consumers.

In terms of product innovation, L'Oréal emphasizes continuous innovation to consolidate its core products, create innovative blockbuster products, and inspire innovation in the global market. At the same time, L'Oréal also pays attention to the O+O (online + offline) omni-channel layout, explores growth opportunities in the sinking market, and empowers new retail through new models such as Helena's first-class new experience and SkinCeuticals' SKINLAB global flagship store in Shenzhen.

Offline channels remain a key focus for L'Oréal. L'Oréal China's 5000 brands have penetrated into 0 cities in China through online and offline channels, such as department stores, supermarkets, drugstores, etc. L'Oréal is also further exploring opportunities in the lower tier and plans to add more stores in its Luxury Cosmetics division. Ma Xiaoyu said that there are nearly 0 shopping malls in China, and the opportunities for L'Oréal are still very broad.

As market trends change, the value of offline channels is also undergoing profound changes. In Ma Xiaoyu's view, the core value of offline channels is changing from "sales outlets" to "experience outlets". Therefore, L'Oréal is further developing POE (point of experience), such as Helena First Class and SkinCeuticals Shenzhen SKINLAB Global Flagship Store, which are all attempts by L'Oréal in the process of exploring new scenarios for offline experience.

L'Oréal China is also driving product innovation through its R&D and Innovation Centre. The introduction of recombinant collagen in the second generation of L'Oréal Paris Honey Pot Cream was recognized by Chinese consumers and subsequently applied to more products to the global market. The 3CE Hug Series Lip Stain Sanxi Jade Velvet Skin-friendly Lipstick is also based on the requirements of Chinese consumers for matte matte, which was pioneered by the Chinese R&D team for China and promoted to other markets in North and South Asia.