India is being discussed at the group level a lot more now,"

 "India is being discussed at the group level a lot more now,"

In NEW DELHI: According to Alexis Perakis-Valat, president of L'Oréal's consumer products division, the growth of e-commerce and social media in India over the past ten years has significantly increased demand for beauty products. The biggest cosmetics company in the world is able to draw in more customers because to this. For the French cosmetics giant, Valat, who was in India last week, is in charge of a portfolio of brands that includes Garnier, L'Oréal Paris, Maybelline, Nyx, Essie, and Mixa. edited snippets from the conversation

What modifications have you noticed in India?

Observing the changes in the Indian beauty industry is intriguing. I was living in China when I moved to India ten years ago. The perception was that the market was evolving in a very conventional, very stagnant direction, with the brands remaining constant over time and the distribution remaining static. The Indian mainstream beauty market has altered more in the last five years than it may have in the previous 100.

Digital, social media, and e-commerce are without a doubt the driving forces behind this transition. Given that Indian customers are now more educated than ever, it's fascinating to see how social media has democratized knowledge. For instance, the number of beauty video views in India over the past year has increased, whereas the number is same elsewhere. Because they know more, I observe more savvy shoppers. They expect more from brands and are willing to spend a little bit more for goods that live up to their expectations. The second effect is that you're also learning about new categories and subsets of the beauty industry, such serums and makeup. This is a fantastic chance for our business and our brands, in our opinion. Even more amazing things are coming in the next ten years.

Globally, L'Oréal has acquired a number of companies. Do you intend to purchase any brands here?

In our opinion, the consumer products division's three biggest brands—L'Oréal Paris, Garnier, and Maybelline—have a ton of room to develop. The leading beauty brand in the world is L'Oréal Paris. It's not yet India's top-selling beauty product yet. It is based on these three pillars: science, empowering women, and Parisian luxury. The brand L'Oréal Paris is multifaceted. So, in terms of affordability, it fills a void that no brand can. It is in this masstige (expensive compared to mass brand) market that is competitively priced to draw in many Indian consumers. L'Oréal Paris has a lot of promise, in my opinion. Regarding Maybelline, ten years ago, it was a fairly modest company that primarily sold kajal. It is now a well-known makeup brand that spans multiple categories. Although Garnier has advanced significantly over the past ten years, it is the leader in green beauty fueled by green sciences.

In terms of my division, I believe that this democratization of knowledge is paving the way for the emergence of entirely new product categories that our brands can host.

How frequently do boardroom discussions bring up India for the parent?

You see, India is the world's sixth-largest market for cosmetics. It's a huge market, and now more than ever, the changes that are taking on in India are definitely working in our favor. As a result, it's coming up more and more. Our division's aim is to democratize and premiumize the market at the same time. And now is the time to accomplish so since social media is democratizing knowledge for an increasing number of individuals. The emergence of new channels, such as e-commerce, is also in favor of this since it provides access to top brands and items. You require a specific average ordering value for the business model to function. Building aspirational brands has long been a strength of L'Oréal's...My division's function is to take Loreal R&D's top innovations and make them available to as many people as possible.

How much of L'Oréal's consumer products segment in India comes from premium beauty?

according to your definition of premium. Although I haven't done the math, it appears that the premium portion of our portfolio is expanding much more quickly than the average (this is a premium portfolio, not a luxury one). Due to e-commerce and the growing sophistication of beauty, the premium segment will expand more quickly.

Does L'Oréal intend to increase the demand for cosmetics other than hair dyes and shampoos in rural India?

The beautiful thing about e-commerce, I've been told, is that more and more major e-commerce businesses want to venture into rural areas. Of course, social media doesn't just exist within the walls of cities. Therefore, our offering will inevitably spread to rural areas. Now, it is obvious that it is not the core of our customer base.

Has your division's inflation slowed down? What are your predictions for global pricing?

We are currently witnessing an easing of inflation around the world, which indicates that inflation will most likely slow down as we have already seen some past price hikes. That being said, let's start by stating that there will still be some inflation because, for instance, becoming green and switching to recycled plastics will cost money and have an effect on prices. Our company's goal is not to increase the cost of the same goods. Our top priorities are to introduce innovations, re-stage our items with new formulae, or concentrate on the category mix that premiumizes our entire mix. You can charge more for lipstick if you create one that is actually superior. You don't have to raise the price of the same product to expand your mix. Due to rising input costs in recent months, there has been some natural inflation; nonetheless, I believe this type of inflation will likely reduce rather than disappear.