LVMH reveals new perfumes and cosmetics R&D centre in Shanghai

LVMH recently has unveiled its perfumes and cosmetics R&D centre in Shanghai. The site, which will be located on the outskirts of Shanghai, will include skincare, makeup, and colour development laboratories, as well as product testing rooms and workshop space. 

The move is seen as the first major initiative following former L’Oréal China CEO Stéphane Rinderknech’s appointment as chairman and CEO of its beauty division back in March.

The centre will allow the group to gain insights into local beauty consumers as part of its mission to "put down roots in Asia and China and create the world's beauty." The move is also part of the group's strategy to relocate its operations to the country.

Chen Jing, R&D Director at LVMH Beauty Asia Pacific told Elle China, that the centre will study Chinese consumers' skin characteristics using cutting-edge technology such as artificial intelligence, and integrate multidisciplinary knowledge to develop skincare and beauty products that meet local shoppers' needs. It will also collaborate closely with the company's French R&D centre to localise new concepts.

Commenting on the opening of the new centre, Andrew Wu, president of LVMH Greater China said, in order to better resonate with the Asian market, the group will incorporate the concept of high-end brands and its research and development into its existing products. “China’s market is becoming more and more important, and so is Asia’s. I believe that the world will be better with the development of China’s market, and China will become stronger and stronger in its interaction with the world,” Wu added.

In addition, the Group's efforts in sustainable development will be further strengthened by the Asian R&D centre. At present, the consumer centre under the R&D centre has obtained the "Leadership in Energy and Environmental Design (LEED)" gold certification, and the product innovation and development laboratory has achieved 100% "paperless" operation. The R&D centre will continue to devote itself to environmentally friendly Product research and development realises the sustainability of the whole life cycle of products from raw materials, formula, packaging, production and transportation to marketing and promotion.

MARKETING-INTERACTIVE has reached out to LVMH for more information.

Don't miss: LVMH reportedly shifts resources out of HK

The news comes shortly after LVMH reportedly shifted its resources out of Hong Kong. The global luxury brand prefers to centralise its investment in burgeoning metropolises such as Shanghai, Chengdu, Guangzhou and Shenzhen as Hong Kong loses its relevance in the Greater China region, sources familiar with the matter told Bloomberg.

As such, LVMH has relocated the regional headquarters of some brands, including the group’s local head office, to Shanghai and repositioned some senior executives to the mainland, according to the report.

LVMH had a strong start to the year despite a volatile geopolitical and economic environment. Recently, the group reported revenue of 21 billion euros in the first quarter of 2023, which sees a growth of 17% from the same period in 2022. Among all of its operating countries, Europe and Japan experienced strong growth momentum, which benefited from robust demand from both domestic and international travellers; where the United States, a market that is still expanding, had a consistent performance.

Related articles:
LVMH banks on Google to help propel personalised CX using AI
LVMH makes plans to overhaul Tiffany & Co. brand as latter's leadership exits post acquisition
LVMH Group president for Greater China Andrew Wu joins the board of Cosmose