L'Oreal Thailand plans to expand its beauty business this year and next at twice the industry rate.
Yesterday the company opened its first green distribution centre, sporting a LEED-certified Silver Level in Asia for its Bang Na-Trat Highway building that should reduce long-term energy costs, supporting future growth.
Managing director Nathalie Gerschtein Keraudy said Thailand's beauty market is the largest in Asean. The market this year is expected to keep rising as Thais love beauty and want to try new things.
"We want each Thai household to have at least one L'Oreal product during my management term," she said.
To achieve the goal, the company will keep a customer-centric focus to understand what they need, said Ms Keraudy.
The new distribution centre covers 21,036 square metres of indoor space, and should reduce CO2 emissions, water consumption, waste, and its transport footprints.
"The centre drives home our 'Sharing Beauty With All' vision under the pillar of sustainable production. It reduces our environmental footprint while bringing beauty to more new consumers," she said.
The distribution centre was built in collaboration with Ticon Industrial Connection Plc, the operator of TPARK Bangna warehouse project. Ticon spent 500 million baht to build the centre, with L'Oreal renting for 10 years.
More than 30% of the materials used in the facility are recycled and locally based, with up to 75% of the total waste during construction recycled and reused, said Ms Keraudy.
Apart from emphasising its sustainability commitment, the new centre highlights one of the company's five key focus areas -- distribution channel growth -- to support its robust expansion in the beauty market and accelerate further business growth in Thailand.
L'Oreal Thailand more than doubled the growth rate of the local beauty market in 2016 thanks to its leadership in the facial skincare segment, she said.
The company continues to record strong annual growth, remaining the fastest-growing beauty company in Thailand and a leader in the facial skincare market, said Ms Keraudy. With NYX, an accessible high-quality makeup brand from the US, it is confident it will retain market leadership.