Nation seen as 'window to the future'
Global cosmetics giant L'Oreal plans to expand its green capital expenditure in China, viewing the world's second-largest beauty market not only as a crucial growth engine, but also as an ideal testbed to pilot new business models and accelerate sustainable transformation across its global supply chain.
The company, approaching its 30th anniversary in the Chinese mainland next year, sees the country as a strategic anchor where economic growth and environmental stewardship advance in tandem, according to Jee Seon Park, chief sustainability officer for L'Oreal North Asia and China.
"China is our 'window to the future'. Beyond being our second-largest beauty market, it features highly sophisticated, demanding consumers, rapid digital innovation and market dynamism," said Park.
"The value of China lies in its unique combination of scale, speed, and innovation. As our business expands, our green capital expenditure and transformation efforts scale alongside it."
This steady commitment to sustainability-driven manufacturing is anchored in key domestic industrial bases, notably in Jiangsu and Hubei provinces.
In Suzhou, Jiangsu, the group's manufacturing plant — its largest globally by production capacity — has started deploying an industrial water recycling system. Once completed by the end of 2027, 100 percent of industrial water used for the plant's industrial purposes will come from recycled or reused water, and over 180,000 metric tons of freshwater will be conserved annually by 2027.
Operating adjacent to the factory is L'Oreal's first smart fulfillment center globally, where AI-powered packaging optimizers and automated sorting systems process 7,000 consumer parcels per hour, ensuring 99 percent of orders are handled within 48 hours.
Park pointed out that unlike other major regions where supporting collection systems remain fragmented, China takes a holistic, infrastructure-first approach.
"When domestic green guidelines are introduced, the requisite logistics networks and digital infrastructure materialize swiftly, enabling multinationals to pilot circular economy projects and low-carbon supply chains smoothly and at scale," she said.
Park noted that the operating climate for multinational corporations pursuing sustainable transformation in China is distinguished by "exceptional speed and scale".
Through the L'Oreal Accelerator program, the company is working with Chinese partners, including Envision, to accelerate sustainable transformation in areas such as packaging and raw materials. The company has also been leveraging China's advanced digital ecosystem to encourage circular habits among discerning Generation Z and millennial shoppers, partnering with platforms such as JD.com, Tmall and smart-recycler Aihuishou.
This green focus aligns with broader macroeconomic tailwinds. China is projected to see approximately 150 million new middle-income beauty consumers emerge by 2030, according to industry estimates, with the Asia-Pacific region set to host more than two-thirds of the global middle-income population by the decade's end.
Furthermore, the government is accelerating the digital and green modernization of services trade and manufacturing as the 15th Five-Year Plan period (2026-30) gets underway.
Chen Jianwei, a researcher specializing in foreign trade at the University of International Business and Economics in Beijing, said China's ongoing institutional opening-up and industrial upgrading are expanding market room for multinational corporations.
By actively investing in local high-tech and green infrastructure, multinational leaders can effectively tap the dual opportunities arising from rising consumer sophistication and China's broader green economic transition, Chen added.
zhengxin@chinadaily.com.cn
