L’Oréal, the cosmetic company based in Paris has posted sales worth 14.3billion yuan (US$2.31billion) for the year 2014. The sales for the year 2014 are up by 7.7% from the previous year’s sales figures.
The result has come out as 18th consecutive year of sales growth in mainland China, the region which is the second largest market for cosmetics in the world. The sales figures were announced at a press conference by CEO L’Oréal China. He announced that mainland China accounted for 8% of the company’s worldwide sales, next to United States and France.
The rise in sales in the region is attributed to online sales growth, investment in innovation and research, channel expansion, and contribution of ‘MAGIC’ the mask brand that attracts large number of consumers in China.
The CEO L’Oréal China further added that online sales doubled in mainland China in the year 2014. However, company analysts said that L’Oréal face challenges from domestic competitors and overseas competitors.
Some of the trends which are expected in the fast-moving consumer goods category in China could be digital transformation, new consumers, emerging channels, and emergence of home grown brands.
The financial report of Shanghai Jahwa Corp for the year 2014 says that the company’s sales revenue was 5.34 billion yuan which is an increase of 19.38% from the previous year. The net profit of the company is calculated as 898 million yuan, which is an increase of 12.2% on a year to year basis.