Asian revenue surpasses European for first time at L’Oreal
The shift is the latest example of how French firms have become increasingly dependent on Asia — and particularly China — to maintain growth
Paris — L’Oreal got more revenue from Asia than from Western Europe for the first time last quarter as the region’s surging demand for luxury products continued to resist the drag of a slower Chinese economy. The shift for the maker of products like Maybelline mascara and Acqua di Gio Armani cologne is the latest example of how French companies have become increasingly dependent on Asia — and particularly China — to maintain growth. Ten years ago, L’Oreal’s Asian sales were less than a third of those in its home market of western Europe. Asia’s importance to L’Oreal is almost certain to keep growing as many European economies stagnate or even shrink, and as China implements policies to encourage its citizens to shop on the mainland rather than during foreign vacations or through black-market resellers. Chinese growth seems to be recovering somewhat, with 6.4% growth in GDP last quarter, topping economists’ estimates. “It’s true that the growth is not broad-based,” RBC analyst James ...
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