THE world’s No 1 beauty company, L’Oreal, sees opportunities in Malaysia’s multi-ethnicity, despite the country’s relatively small population of 28 million.

“We could say a country of 28 million is not important compared with a country of 1.3 billion. If not important, we wouldn’t be here,” said L’Oreal executive vice-president, Asia-Pacific, Jochen Zaumseil.

He said Malaysia’s multi-ethnicity offers L’Oreal an opportunity to test its products and develop new ideas.

As L’Oreal is already the top brand in the country’s beauty market, Zaumseil hopes its experience in our multi-ethnic society will be useful for its expansion in India.

“Malaysia is the country in Asia-Pacific where we have the highest share of the men’s market. Together L’Oreal Men Expert and Garnier have a 45% market share.

“From our perspective it’s a great way to see different ethnicities and different answers. It’s not one brand reserved for a particular group but it’s the way the brands are working at different price levels so we achieve market share between both,” he said.

Zaumseil considers Malaysia’s beauty market to be still emerging, which means it will chart stronger growth than the economy. He said L’Oreal would be able to register double digit growth in this market as it gains market share.

Andrew Stanleick, managing director for L’Oreal Malaysia, listed three ways it will contribute to the group’s global strategy of reaching the next billion customers.

First, product innovation to meet customer needs which can be achieved by adapting international products for the Malaysian market.

“A great example is the success of Garnier Men in Malaysia. Launched in 2010, the product formula was specifically developed for the climate in Southeast Asia and the needs of Malaysian men. It quickly became the No 1 range of the men’s skincare market with a 26% market share of this rapidly growing category,” he said.

Second would be the drive to be relevant to customers. Examples of this includes Garnier BB cream which was developed in Malaysia as the new, better generation of “Krim Kecantikan” and halal certification for Garnier.

“Garnier was the first international cosmetics brand to receive halal certification from the Malaysian Islamic Development Department (Jakim) for its Garnier Skin Naturals Light range and Garnier Men range of skincare,” Stanleick said.

The third pillar of L’Oreal’s strategy in Malaysia is penetration, making its range of brands and products accessible. Stanleick said L’Oreal’s vision is for Malaysian consumers to be able to find a L’Oreal product in every city and kampung.

“To this end, we have adapted our products in Malaysia into different sizes and formats suitable for selling in all the different types of stores from drug stores, hypermarkets to convenience stores and standalone boutiques.”

This article is appeared in The Edge Financial Daily 27 September, 2012.