L'Oreal(US:LRLCY) Cai Jing Wang·2025-12-05 13:37Core Insights - L'Oréal's China R&D and Innovation Center is driving global beauty giant's performance through localized product innovations tailored for Chinese consumers [1][2] - The center has evolved into a key pillar in L'Oréal's global R&D landscape, emphasizing collaboration with local scientific institutions and startups to enhance innovation capabilities [4][5] Group 1: Product Innovations - Customized products such as a jasmine-scented cream and a lip gloss inspired by local culinary flavors are examples of L'Oréal's localized approach [1] - The "P-TIOX" peptide serum, developed by the Chinese R&D team, has been highlighted as a major contributor to sustained double-digit growth for the brand [2] Group 2: R&D Achievements - Over the past 20 years, L'Oréal's China R&D has conducted approximately 35 large-scale foundational research projects, involving over 100,000 Chinese consumers annually [7] - In 2024, the center is set to publicly file 372 patents, with 81 of those being inventions from the Chinese R&D team [7] Group 3: Collaborations and Investments - L'Oréal has engaged in strategic investments in local biotech firms, such as "Unnamed Light," to co-develop innovative bioactive ingredients and promote sustainable production methods [10][11] - The establishment of the "Academician Workstation" in collaboration with Shanghai Jiao Tong University marks a significant milestone in L'Oréal's commitment to local scientific advancement [9] Group 4: Market Strategy - L'Oréal's investment strategy includes backing emerging local brands like LANlan, which aligns with the company's long-term vision of investing in the future of the Chinese market [15][16] - The company aims to leverage its R&D capabilities to support the commercialization of innovative products and enhance the overall beauty ecosystem in China [12][16]