After a tough run in one of its most important markets, L’Oréal is doubling down on its commitment to China, targeting 5% growth in 2025. The French beauty powerhouse is now signaling that the world’s second-largest beauty market may be approaching a long-awaited turning point.

Rebuilding Confidence in a Shifting Market

Despite recent headwinds—including Covid-19 aftershocks and diminished consumer confidence—L’Oréal’s CEO of North Asia and China, Vincent Boinay, shared an optimistic outlook during a conference in Shanghai.

“The numbers are getting better… and the target of 5% is not only the target for Chinese growth this year, but also the target of L’Oréal in China,” said Boinay.

While competitors like Estée Lauder, Shiseido, and Kao have seen declining performance in China, L’Oréal is signaling resilience. The brand’s reinvigorated strategy includes strategic investments, local innovation, and deeper cultural alignment.

A Socio-Economic Bet on Beauty

Coinciding with its Shanghai event, L’Oréal unveiled its first socio-economic impact study in China—highlighting how its activities support over 330,000 jobs across the country.

The study outlines how each direct job at L’Oréal creates up to 20 additional jobs in related sectors. It also underscores how beauty continues to resonate across generational and demographic lines—from Gen Z to Boomers, and with rising interest from male consumers.

“We firmly believe that investing in China is investing in the future,” Boinay stated.

What’s Fueling L’Oréal’s Renewed Push?

• Portfolio expansion: Launching new brands like Miu Miu and Dr.G to appeal to evolving consumer tastes.

• Product elevation: Amplifying performance of hero products across skincare, makeup, and fragrance.

• The Beauty Stimulus Plan: An internal roadmap to prioritize China as a core market, sharpen brand strategies, and grow consumer relevance.

• Venture capital initiatives: L’Oréal has introduced two new investment funds in collaboration with Cathay Capital, Tiantu Capital, and Jing’an District of Shanghai, supporting early- and growth-stage Chinese beauty startups.

Strategic Long-Term Vision

Laurence Ma, Deputy CEO of L’Oréal China and General Manager of the Luxury Division, reinforced the company’s holistic approach:

“From brand portfolio and product innovation to channel strategy and talent development, we go from strength-to-strength.”

As the company marks 28 years in China, its long-standing presence and willingness to adapt may give it an edge over international peers still struggling to regain momentum.

The Bigger Picture

If L’Oréal succeeds in hitting its 5% growth target, it may set a precedent for luxury beauty brands seeking a path forward in China. While uncertainty lingers, L’Oréal’s assertive positioning—and its belief in China’s beauty future—could represent a new era for the market.