L’Oréal inaugurates new Research & Innovation Centre in Mumbai, India

Cosmetics, skincare and hair care products maker L’Oréal has inaugurated a new Research & Innovation (R&I) Center in Mumbai, India, in order to study hair and skin specificities as well as the beauty routines and expectations of Indian consumers.

L’Oreal’s new R&I Centre is occupied in 5,000 m² and becomes the group’s sixth research hub globally.

The firm said it is also investing a total of Rs9.7bn ($177.26m) in the country from 2011 to 2016, as it aims to gain a major share in the country’s fast-growing market for high-end beauty and haircare products.

The France-based firm said it already invested 30% of the amount since 2011 and is aiming to get 150 million consumers in the country by 2020.

L’Oreal Paris chairman Jean Paul Agon told the news paper Deccan Herald that the firm’s new R&I Center in the country backs its potential in the Indian market.

"It is in line with L’Oréal’s universalization strategy of adapting our global brands to each culture’s specific needs," Agon said.

The firm, which has been in India for 18 years, is targeting Rs70bn ($1.28bn) in sales in India by 2020, up from an expected Rs15.80bn ($288.74m) in 2012.

L’Oreal’s expansion plans for India come at a time when euro-zone turbulence is weighing on consumer spending in its home market.

The firm has already introduced several India-inspired products such as modern creme hair color, fairness creams for men, anti-ageing creams, and other India specific products like shampoo with oil and kajal in brands such as L’Oreal, Maybelline and Garnier.

India contributes between 1% to 2% of the company’s global revenue but is strategically one of its top five markets.