L’Oréal CEO sees beauty market rising to €400bn by 2030

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He sees growth coming from the rise of middle classes as well people wanting premium products with higher price tags and a widening consumer base beyond women and young people.

A self-proclaimed “beauty junkie,” Nicholas Hieronimus has been at L’Oréal SA for nearly four decades. In that time, the beauty industry has changed dramatically. E-commerce and social networks have lowered the barrier to entry for startups, dermatological division have become a focus and more men are using beauty products. He predicts that beauty will be a market close to €400 billion by 2030 from €270 billion now.

Hieronimus makes a point of sampling all the products L’Oréal makes. “I try my products, I try the competition just to make sure we have the best and sometimes we see an interesting competitive product that we have to step up to,” he said. Hieronimus spoke in an interview with Bloomberg TV’s Francine Lacqua about other ways he’s managing the world’s largest beauty company.

The biggest transformation happening in beauty is what we call beauty tech. The help of technology to augment the performance of beauty products, either through diagnosis or through even personalised made-to-measure beauty products. And that’s probably the future of beauty. We also spend more than €1 billion every year in technology. And that’s our pledge to become the leader of beauty tech. And, here we use AI to augment our researchers to invent new ways to formulate products.I’m a competitor. I love sports and I try to be demanding for myself and demanding for everybody because we have big goals to achieve. Being number one and increasing our gap with the competition is not that easy. I believe in the power of the team.

There are many, many things that are difficult. We’ve committed to have 100% recycled plastic by 2030. Today the availability of recycled plastic is not big enough for us to transform everything. We are investing in our own VC in new technologies that will provide waste to recycle plastic.Younger generations pay more attention to sustainability. They are looking at brands that are greener. But you have to make sure you’re authentic because they hate greenwashing.

 

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