CHINA. L’Oréal has opened a new research facility in China, the Pudong L’Oréal Research Centre, whose main mission will be to conduct and support basic science research to vastly improve present understanding of the structure and behaviour of Chinese hair and skin.
Located in Pudong, on the outskirts of Shanghai, the Research Centre is claimed to be the first facility of its type operated by a cosmetics company. It will be equipped with a world-class team of chemists and physicists, in order to advance the understanding of the unique properties of the hair and skin of Chinese consumers.
The research complex, covering 3,000sq m, will also house product laboratories with expertise in Asian products and consumer products evaluation centres. L’Oréal will leverage the valuable knowledge that is obtained from the research that is conducted at the Centre to develop innovative and better performing new hair care, skincare and cosmetic products for a growing number of Chinese and Asian consumers worldwide.
“The opening of this Research Centre represents an important turning point for our company and for Asian consumers around the world,” declared L’Oréal CEO Sir Lindsay Owen-Jones.
“The knowledge and insights that we gain through research conducted at the Pudong Research Centre will ultimately allow us to develop innovative new products that better service the beauty care needs of the global Asian market.”
The decision to invest in China is part of a long-term global strategy and commitment to formulate cosmetic products that meet consumer needs the world over, while continuing to respect cultural diversity.
The Pudong Research Centre will be responsible for developing efficient, high-tolerance products that support L’Oréal’s brand internationalisation strategy. This involves adapting brands originating from other parts of the world to Chinese and Asian consumer needs, while also supporting the internationalisation of Chinese origin brands, such as Yue-Sai.
The Pudong facility will initially contain development laboratories focusing on make-up, skincare and haircare. In 2006 the facility will be expanded to house biology laboratories focusing on tissue engineering and chemical laboratories which will concentrate on effectively leveraging botanical raw materials that are inspired by or used in Chinese medicine.
By year-end 2006, more than 60 employees will work at the centre, the vast majority of them hired locally.
L’Oréal, founded almost 100 years ago by a scientist, has always placed an emphasis on the importance of research. The company invests 3.4% of its total sales (€507 million in 2004) in research and development every year – and more than one third of this investment is in fundamental research.
The company has had strong ties with the scientific community in China since 1996 when the company first started operating in the country and works with prominent universities, hospitals, research institutions and raw material providers.
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