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L’Oréal buys second Chinese skincare stake

Cosmetics giant L’Oreal said on Monday it has taken a minority stake in mass-market Chinese skincare brand Lan, marking its second investment in recent months in China, where local brands have grown rapidly, reports Reuters. L’Oreal did not disclose the size or cost of the stake, but L’Oreal North Asia President and China CEO, Vincent Boinay, said it highlights how central China is to the company’s global strategy.

“We firmly believe investing in China is investing in the future, and we will continue to cultivate the Chinese market, work with more Chinese brands to create a beautiful future and meet the expectations of sophisticated Chinese consumers,” he said in a statement.

Reuters was unable to contact Lan for comment for this story.

The investment in Lan comes after L’Oreal paid RMB 442 million ($62 million) for a 6.67% stake in Chando, as disclosed by the Shanghai-based company last month in its prospectus for an IPO in Hong Kong.

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