L’Oréal Strengthens Its China Investment With a Second Investment in C-Beauty

L’Oréal has acquired a minority equity interest in the Chinese mass-market skincare brand Lan, representing the company's second investment in a Chinese beauty enterprise. The move highlights L’Oréal’s increased emphasis on China as international brands continue to lose market share to rapidly expanding domestic competitors. Lan is a Shanghai-based skin care brand founded in 2019. The brand develops products using a mix of biotech methods such as “molecular oil extraction” and traditional Chinese formulations. It reached around ¥200 million (US$28.1 million) in revenue by 2020, according to the company. Lan was China’s top-selling facial oil brand in 2023 and 2024.

We firmly believe investing in China is investing in the future, and we will continue to cultivate the Chinese market, work with more Chinese brands to create a beautiful future, and meet the expectations of sophisticated Chinese consumers,” says Vincent Boinay, president of L’Oréal North Asia and CEO of L’Oréal China.

The agreement comes after L’Oréal’s acquisition of a 6.67% stake in the alternative C-beauty skincare brand, Chando, for 442 million yuan (US$62 million) last month. Chando’s mid-range pricing strategy and presence in smaller cities facilitate L’Oréal’s long-term recovery in China by enhancing L’Oréal’s growth without directly competing with its premium brands. A comparable dynamic could enhance L’Oréal’s investment in Lan, which similarly competes within the mid-market segment and attracts consumers beyond major urban centres.

Source: Personal care insights