JAKARTA Nov 5 L'Oreal, the world's
biggest cosmetics group, is feeling the effects of the slowdown
in China and "brutal" trading conditions in South Korea and
Taiwan, the company said.
The group's turnover from luxury goods in South Korea is
down 2-3 percent this year after achieving 8 percent growth last
year, L'Oreal's Asia-Pacific Managing Director Jochen Zaumseil
told Reuters on the sidelines of a press event on Monday.
L'Oreal's luxury products, which include Yves Saint Laurent
perfumes and Biotherm and Lancome creams, represent about 25
percent of the company's total sales.
"Two markets that have been brutal are Korea ... and Taiwan,"
South Korea and Taiwan are among Asia's most
export-dependent countries, making them vulnerable to weakness
in global demand.
China, the main driver of demand for luxury goods in recent
years, has suffered a slowdown this year, though L'Oreal was
still gaining market share, Zaumseil said.
"We don't believe (the slowdown) is sustainable," Zaumseil
said. We are expanding our territory into second and third-tier
cities - we will fuel our growth through expansion."
L'Oreal's Asia-Pacific turnover grew 12.5 percent overall in
the first half of this year.
(Writing by Astrid Wendlandt; Editing by David Goodman)