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L’Oreal takes to sachets

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With its eyes set on a larger pie in the skin and haircare category, L’Oréal India seems to going small — the sachet way. The French company, which entered the Indian market 15 years ago, said customisation and innovation will continue to remain high on its agenda.

“Our aim is to continuously provide something new to our customers besides it also helps each of our brands to attain leadership positions in the respective segments. Smaller stock keeping units, especially sachets, have been introduced so that a major chunk of the consuming class can be addressed through this,” said Dinesh Dayal, COO, L’Oréal.

He said Garnier, its flagship brand, has products in sachets. These include shampoos and conditioners (Rs 3 and Rs 4 respectively). A recent introduction includes a 7.5 ml sachet of Garnier Lite Fairness Moisturisers priced at Rs 12.

“These are some of the innovations that have been developed at our Pune facility. Despite not having a formulation lab in India, the facility has been instrumental in developing a slew of haircare products,” he added. The facility, besides meeting the requirements of the domestic market also exports to West Asia and Australia.

L’Oréal operates in India through four main divisions: consumer products, professional products, active cosmetics and luxury products. According to analysts, the biggest contributor to its revenue in India is the consumer products division led by Garnier.

Its other brands include L’Oreal Paris and Maybelline in the consumer products sector, Lancome in the premium make-up range besides retail venture L’Oreal Professional.

Asked if pruning of inventories by modern retailers had impacted sales, Dayal said, “It is a mixed bag, though the impact has been marginal in India. Our approach is to welcome all types of distribution as this mitigates dependence on one format”.

Dayal said the Rs 600-crore company will continue its focus on marketing and branding.

He, however, did not divulge the spend on marketing. It is estimated that globally L’Oréal spends 30.7 per cent of its worldwide turnover on advertising and promotion and 3 per cent on research and development.

L’Oreal is also a partner with Giorgio Armani to market and distribute its range of fragrances.

Source: Business Line

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