Demand for beauty items appears to be holding up regardless of hundreds of millions of consumers who are not leaving their houses to battle the coronavirus pandemic.
L’Oreal, the world’s largest cosmetics company, claimed earlier in this month that first-quarter sales in China improved 6.4% in the same period in 2019, regardless of the nation’s coronavirus forced closure, which forced the economic growth to grind to a halt. China’s economic growth has shrank for the first time in decades, leading to concern that development would slow dramatically. The firm, whose sprawling beauty empire covers many of brands across skincare, haircare, make-up, and perfumes, claimed that worldwide sales slid 4.8% over the 3 months to March.
”However, as the example of China has revealed, the existing circumstance does not call right into question consumers’ strong hunger for charm items, which continues to be undamaged,” it stated in a declaration.
L’Oreal said that online sales have increased in China, with demand for skin care and haircare products improving during the lockdown. Demand in other categories recovered strongly as the country started resuming activity in certain industries, putting sales on track to increase by double-digits in the 2nd quarter. Investors are betting on a speedy financial recovery from coronavirus, as businesses like Starbucks to Volkswagen reveal strategies to reopen factories as well as shops. Lessons from L’Oreal’s can raise those hopes.