L’Oréal is planning to ramp up investments in India to make it one of its top five global hubs, according to a report released this week. The decision stems in part from the brand’s success in the Indian market. L’Oréal sold $31 million in cosmetics and hair care and color products in 2013, and aims to quadruple sales by 2020.

L’Oréal Group was able to penetrate the Indian market with a tailored strategy that mixed localized tactics with standardized ones. For example, the brand placed Facebook at the forefront of its Maybelline promotion, and quickly amassed 1.8 million fans on Facebook while sales doubled in a few months after an interactive ad campaign. L’Oréal also built an innovation hub in Mumbai with the goal of creating new products inspired by local rituals and adapting their technology to the needs of Indian consumers. The brand’s Colossal Kajal Eyeliner – inspired by Kohl – is an example of such products. For a launch strategy, L’Oréal’s first rolled out aspirational products such as Garnier and L’Oréal Professionnel and created an elevated brand perception without the need for price disparities.


L2’s Intelligence Report: Localization, finds harmonized pricing, strategic site investments, and diversified information structures to be crucial steps towards a globalized local strategy. Yet, few brands adhere to these standards when developing a global presence. The graph below shows price discrepancies for women’s jeans across different countries.


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