L’Oréal expands Asian footprint with minority acquisition of Lan Brand
By aligning with successful local brands, L’Oréal aims to maintain relevance and drive future growth in one of the world’s most competitive and dynamic beauty markets.
CHINA – L’Oréal has deepened its presence in China by acquiring a minority stake in Lan, a leading mass-market skincare brand, marking its second investment in a Chinese beauty company within a short period.
This move highlights L’Oréal’s intensified focus on China, where global beauty brands are facing mounting pressure from fast-growing domestic competitors amid the country’s economic slowdown.
The deal strengthens L’Oréal’s position in China’s mid-market segment, a space where local brands have been rapidly gaining traction and capturing consumer loyalty.
Vincent Boinay, president of L’Oréal North Asia and CEO of L’Oréal China, emphasized that investing in China is investing in the future, stating the company’s commitment to cultivating the market, collaborating with more Chinese brands, and meeting the expectations of sophisticated local consumers.
The investment in Lan follows L’Oréal’s 442 million yuan (USD 62 million) purchase of a 6.67% stake in Chando, another prominent C-beauty brand, further underscoring L’Oréal’s strategic pivot toward mid-market and natural-ingredient skincare.
Both Lan and Chando target consumers outside major urban centers and promote “clean” beauty concepts, aligning with the preferences of Chinese shoppers who increasingly favor accessible, value-driven products with clear ingredient positioning.
Lan, founded in 2019, is recognized for its biotech-driven product development and traditional Chinese formulations, and it achieved top-selling status in China’s facial oil category for 2023 and 2024.
The brand’s emphasis on natural ingredients and its appeal to consumers in lower-tier cities mirror Chando’s approach, providing L’Oréal with valuable insights into locally resonant ingredient concepts and distribution channels.
Analysts note that this partnership strategy allows L’Oréal to leverage the brand equity, consumer trust, and established online ecosystems of domestic players, serving as a hedge against the potential decline of global labels in China.
These investments come as L’Oréal reports its first quarterly sales growth in China in two years, with a 3% increase in the third quarter, signaling that its recalibrated strategy may be stabilizing its performance in the region.
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