In a significant move that underscores the growing importance of integration between skincare and medical beauty, L'Oréal Group has announced an investment in a Chinese medical beauty chain known as "Yan Shu Medical Beauty." This investment comes from L'Oréal's Skin Science Division, which aims to enhance the practical testing of comprehensive skincare solutions while ensuring the integration of skin health needs with professional medical beauty services.

The response to this development from L'Oréal reaffirmed the company’s commitment to driving its ReVive brand’s ethos of "holistic skincare." By investing in Yan Shu Medical Beauty, L'Oréal not only aims to gather firsthand clinical data to aid in product development but also seeks to explore optimal methods for engaging customer bases in medical beauty institutionsThe long-term vision extends to transforming the entire Chinese market, effectively benefiting all partners involved.

Established in 2011, Yan Shu Medical Beauty has expanded its operations significantly, opening flagship stores in major cities such as Hangzhou, Suzhou, and Shanghai by the end of 2023. Its service offerings include advanced laser and injection projects tailored to diverse aesthetic needs

Industry insiders note that L'Oréal had established a relationship with Yan Shu prior to this investment, highlighting a foundation of collaboration that is now poised to evolve further.

Liu Bo, the general manager of Guangzhou Maisui Enterprise Management Consulting Co., insights underscore the strategic value of this investment against the backdrop of shifting trends towards effective skincare solutionsAs the market gravitates more towards applying proven medical insights into cosmetic products, L'Oréal's proactive investment in medical beauty institutions allows it to amplify brand intentions far-reachinglyThis involvement provides an avenue for obtaining essential clinical data that can define future product innovations.

Yan Shu Medical Beauty is predominantly helmed by elite medical professionalsIts founder, Song Weimin, previously served as the deputy director in the dermatology department at Hangzhou Third People's Hospital before embarking on his entrepreneurial journey

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This background provides a robust foundation for the quality and credibility of services offered at Yan Shu.

The detailed objectives of L'Oréal’s investment are primarily concentrated on enriching the ReVive brand's understanding of clinical practices and developing new products tailored to meet evolving market demandsHowever, specifics regarding the financials of this venture remain undisclosed.

ReVive is a premier brand under the L'Oréal umbrella, primarily focused on high-end clinical offeringsDuring a business summit, L'Oréal (China) Vice President and Head of the Skin Science Division, Ma Lan, shared the brand's ambitious plans for the next five yearsThese plans involve leveraging their core expertise to unlock new retail frontiers across populous metropolitan areas, effectively broadening their reach in the skin and medical beauty marketThe concept of “holistic skincare,” introduced by ReVive in 2012, is gaining traction, promoting comprehensive solutions addressing varied skincare parameters like skin tone, texture, and age.

In 2023, ReVive inaugurated its first combined medical clinic, SKINLAB, in Shenzhen; this move heralds a new era of blending traditional skincare with medical aesthetics

According to L'Oréal, the essence of their holistic skincare vision merges "makeup" and "medical" approaches, with the investment in Yan Shu Medical Beauty serving as a vital practical training ground.

The collaboration spans beyond traditional skincare, with plans for joint development in advanced medical instrumentsA noteworthy achievement is the SMART SKIN SCOPE, an intelligent skin diagnostic solution co-developed by Song Weimin and ReVive with L'Oréal’s R&D center, which can perform rapid skin assessments and relay image data within seconds, showcasing the innovative strides being taken to enhance customer experience in medical beauty.

L’Oréal’s foray into the medical beauty sector isn't isolated; recent months have seen a deeper commitment to this burgeoning marketNotably, in August 2024, L'Oréal acquired a 10% stake in Swiss skincare conglomerate Galderma, establishing a partnership centered on dermatology-related innovations.

Moreover, in March 2024, ReVive proudly announced its collaboration with Jinbo Bio to introduce its first-class medical device product, the "Platinum Study" collagen syringe

This innovation marks ReVive as the second entity in China to launch recombinant human collagen implants—an impressive feat reinforcing their foothold in the medical beauty landscape.

As Ma Lan reiterated in her announcements, the Chinese market represents one of the largest skincare markets globally and remains a focal point of L'Oréal's strategyWith an emphasis on close collaboration with industry professionals and dermatology experts, L'Oréal is reinforcing its investment in China's beauty market for sustainable growth.

Transitioning through various market dynamics, L'Oréal has recognized the ongoing rapid changes within the Chinese landscapeIn February 2024, newly appointed North Asia President and CEO Bo Wanshang outlined the company's innovative "3S" strategy model focusing on Speed, Scale, and Superiority, acknowledging the accelerated pace of market shifts and emphasizing the need for high responsiveness.

The rapid transformations in China's beauty market present new growth opportunities for L'Oréal

The company's financial reports for the third quarter of 2023 reveal a sales figure of €32.406 billion, representing a 6% year-on-year growth, despite substantial declines in the North Asia region, including China.

Naturally, it’s essential to note that L'Oréal's Skin Science Division, which evolved from the Active Health Cosmetics Division, has emerged as the fastest-growing unit recently, achieving an impressive revenue increase of 11.3% to €5.393 billion in 2024's first three quarters.

As articulated by Ma Lan, the mission of the Skin Science Division is to modernize the beauty and medical market landscape in China toward a more innovative, professional, and trusted future, symbolizing L'Oréal's dedication to enriching and redefining skincare standards.

According to Meituan's recent findings, as of September 2024, nearly 3,000 new medical beauty establishments have opened on the platform, showcasing a staggering 38.5% increase year on year

Forecasts suggest that the Chinese medical beauty market is poised for a robust growth trajectory of around 10% in 2024, driven by rising demand and accessibility.

Through this investment, L'Oréal sends a resounding message of confidence and commitment toward China's evolving marketContinued investments signal an optimistic view that engaging in the Chinese market is fundamentally investing in the future.

In recent years, L'Oréal's strategy in the Chinese arena has pivoted toward beauty technology, medical aesthetics, and sustainable development, marking its footprint as a proactive player in local brand and management adaptationsThe company has engaged in multiple initiatives to amplify its presence and effectuate innovation in the beauty sector.

Aside from recent backing of local medical beauty institutions, L'Oréal made strategic investments in Chinese cosmetic raw materials company Shan Hai Innovation, marking its inaugural open innovation project via the Meici Fang investment platform, aimed at enhancing domestic R&D capabilities.

Meici Fang, founded in 2022, has emerged as L'Oréal's pioneering investment company focusing on domains such as brand innovation, beauty technology, futurism, sustainability, and operational excellence.

Further widening its investment portfolio, in February 2024, L'Oréal announced another strategic investment in TOSUMMER, a local high-end perfume brand, boosting its prospects for international market visibility