By acquiring minority stakes in a Chinese skincare brand (Lan) and a Mexican perfume company, respectively, the world’s leading beauty company and the American giant are diversifying their portfolios. They are responding to the rise of local competitors, who are better able to understand the expectations of their fellow citizens.
For the beauty giants, inclusivity also means external growth.
France’s L’Oréal and America’s Estée Lauder have announced almost simultaneously that they are acquiring minority stakes in local champions in the sector.
Both announced that they had acquired stakes in Chinese skincare brand Lan for the beauty leader and in Xinú, a Mexican luxury perfume brand inspired by the richness and exoticism of the American continent, for Estée Lauder.
New investment by L’Oréal in China
For L’Oréal, this transaction, the amount of which has not been disclosed, is the fifth investment made in China in the last three years in local perfume and cosmetics companies.
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Featured photo: © Lan – Xinú
