SUBMIT IMAGE: A cosmetic display screen of French cosmetics group L’Oreal at the Nice International Airport, in Nice, France, October 10,2018 REUTERS/Eric Gaillard/File Picture
PARIS (Reuters) – Purchases of cosmetics are getting – especially in China – as nations leave coronavirus shutdowns that forced beauty parlor and retailers to close, L’Oreal ( OREP.PA) President Jean-Paul Agon stated.
The French appeal group, that makes Maybelline make-up and high-end Lancome creams, had already kept in mind a bounceback in Chinese consumption by April as the nation relieved restrictions to fight the pandemic. Consumers were now returning in other places too as shutdowns in Europe start to be lifted, Agon stated in an interview.
” Things are going the way that we were preparing for. I constantly said this crisis for us, to date, is more a supply crisis than a need crisis,” Agon informed Reuters.
” We see in China that service is back to a very strong development in these newest 10 weeks. We see also that in different nations, when lockdown expires and stores reopen, consumers are returning.”
L’Oreal had like competitors continued to sell online in China and elsewhere during the crisis and government-enforced shutdowns, however closures of department stores for example had weighed on sales.
The group had reported a 4.8%equivalent sales fall in the very first quarter. It is due to release its next revenues in July.
In France and throughout Europe, individuals have rushed back to hairdresser as restrictions on companies have actually started to alleviate, although the pandemic has raised questions over whether consumption habits deserted throughout the lockdowns will return in an enduring method.
The pandemic may impact the charm industry in other methods too, potentially improving need among buyers for more organic cosmetics, Agon said – a fast-growing location of the charm industry which huge companies have actually been attempting to capitalise on.
” It’s prematurely to do this type of research, (but) intuitively, yes there will be a lot more a tourist attraction for natural active ingredients, healthy items, healthy formulations, tidy solutions, that’s obvious,” Agon stated.
Reporting by Sarah White; Editing by Benoit Van Overstraeten and Jane Merriman