Core Insights - L'Oréal is facing unprecedented challenges in the Chinese market, with a decline in sales for the first time in a decade, while global sales grew by 5.1% in 2024 [2][6] - The company is launching initiatives focused on beauty technology and AI innovation, including the first Beauty Tech Hackathon in China [1][5] - L'Oréal has established two new investment funds aimed at supporting emerging beauty brands and related industries in China [3][4] Investment Strategies - The "Kaihui Chuangmei Future Fund" will invest in growing beauty brands and related enterprises, while the "Meili Linghang Fund" will focus on early-stage beauty projects with technological innovation and sustainability [3] - L'Oréal's investment strategy has shifted towards growth-oriented beauty projects, with the establishment of "Meici Fang" to invest in beauty startups and breakthrough technologies [4][5] Market Dynamics - The Chinese beauty market is experiencing a slowdown, with a 1.1% decline in retail sales and a 9.4% drop in imported cosmetics in 2024 [2][6] - Domestic beauty brands have gained market share, reaching 50.4% in 2023, surpassing foreign brands [7] - L'Oréal is adapting to changing consumer preferences, focusing on the "Z generation," mature consumers, and male demographics as key growth segments [6][12] Consumer Engagement - The company emphasizes the importance of understanding consumer behavior, noting a shift towards value, quality, and cultural resonance in brand connections [6][7] - L'Oréal aims to expand its consumer base from 100 million to 150 million by 2030 [6] Retail Strategy - L'Oréal is transforming offline stores from sales points to experience centers, enhancing customer engagement through service and product experience [9][10] - The company plans to deepen its presence in lower-tier cities, with a focus on expanding its retail footprint in these markets [11][12]
十年来销售额首次下滑，欧莱雅中国的“挑战与三板斧”