L’Oreal SA remains bullish on the Chinese market’s growth potential despite ongoing tensions related to ingredient disclosure requirements. Speaking from the CES consumer technology trade show in Las Vegas, CEO Nicolas Hieronimus highlighted China’s significance as a key growth driver for L’Oreal, thanks to the expanding middle class. The commitment to investing in the Chinese market remains steadfast.
Hieronimus reassured stakeholders that L’Oreal can adhere to Chinese regulations without compromising the confidentiality of its cosmetic recipes.
These comments follow concerns raised by the European Union regarding the extensive product information demanded by China from beauty giants like L’Oreal and LVMH Moet Hennessy Louis Vuitton SE. China’s implementation of rules necessitates cosmetics firms to furnish comprehensive data, encompassing ingredients, manufacturing processes, raw material sourcing, and formula composition. European companies remain cautious about potential trade secret exposure, despite no evidence suggesting ill-intentions from China in utilizing collected information.
In collaboration with China, France is actively working to enhance the regulatory environment for cosmetics, aiming to ensure both market access and product safety.
In a separate statement, Hieronimus expressed optimism regarding improving sales trends in travel retail, especially in Asia. Anticipating a gradual upturn in the second half of 2024 for travel retail, he remains positive following a challenging environment in the previous year. L’Oreal is scheduled to report its annual results on February 8.