L’Oreal, hungry for growth, hunts with small packs
L’Oreal, the company that introduced shampoo-based hair dyes in India, is now looking at small packs to widen its market share here, reports Rachit Vats.business Updated: Feb 23, 2010 21:40 IST
L’Oreal, the company that introduced shampoo-based hair dyes in India, is now looking at small packs to widen its market share here.
The company is also looking at strengthening its distribution network, launching India-specific products, recruiting more management trainees, and increasing advertising expenditure.
“The business in India is growing faster than ever,” said Geoff Skingsley, executive vice-president, Human Resources, L’Oreal.
“We need to accelerate all our activities to keep up with the business growth objectives. Eighty per cent of our Rs 800-crore turnover comes from sale of consumer products. In terms of innovation we are looking at new product formulation and packaging.”
Some of L’Oreal India’s consumer products have already been introduced in small packs and sachets. The company plans to follow the small pack-pocket friendly route for its products under the Garnier Men’s range and other new products in pipeline.
In 2009, while the western markets sunk, L’Oreal saw rapid growth from emerging markets such as India, registering a strong 32 per cent annual growth. In the consumer products, Garnier achieved very strong growth across all categories. L’Oreal India’s distribution strength, which at present reaches out to 400,000 outlets, will be expanded to 1 million outlets by the 2010 end.