The world’s leading luxury group has inaugurated its new research and development (R&D) center in Shanghai, its largest in Asia. The group will use cutting-edge technologies to develop perfumes and cosmetics, a market that is soaring in China.
LVMH is active in Asia. After the overhaul of its Beauty division and the appointment of former L’Oréal China CEO Stéphane Rinderknech as president and CEO of its perfumes and cosmetics department in March, the group unveiled its first major initiative in China: the opening last month of a Perfumes and Cosmetics Asia research and development (R&D) center in Shanghai.
Located on the outskirts of Shanghai, the R&D center is the group’s largest in Asia, covering more than 22,000 square meters. It is equipped with laboratories for developing skincare and make-up products, as well as rooms for testing products and a workshop area.
“The Chinese market is becoming more and more important, as is the Asian market. I think the world will be better off with the development of the Chinese market, and China will become stronger and stronger in its interaction with the world”, said Andrew Wu, president of LVMH Greater China, at the opening ceremony.
With a mission to “put down roots in Asia and China and create the world’s beauty”, the center will enable the group to gain insights into local beauty buyers. The move is also part of the group’s strategy to move its operations to the interior of the country.
State-of-the-art technology
The new center will use the latest cutting-edge technologies, including AI, to study the skin characteristics of Chinese consumers. It will bring together multidisciplinary knowledge to create skincare and beauty products that meet the needs of local consumers. In addition, it will work closely with LVMH’s R&D center in France to adapt new concepts locally.
For Chen Jing, R&D director of LVMH Beauty Asia Pacific, this is a promising sector. In 2019, the Chinese skincare market reached $35 billion, which is 4.43 times more than the makeup market. Now, according to Mintel, the skin care industry in China it is expected to exceed $60 billion by 2050.
[…]
Featured photo : © LVMH
