L’Oréal has recently expanded its portfolio by investing in Lan, a clean beauty brand based in Hangzhou, China. This investment marks a significant milestone for L’Oréal’s China fund, Shanghai Meicifang Investment, and its corporate venture capital division, BOLD. Notably, this is Meicifang’s inaugural investment in a Chinese skincare brand, showcasing L’Oréal’s commitment to nurturing local talent in the beauty industry.
Founded in 2019, Lan has carved out a niche in the rapidly growing clean beauty sector by advocating for oil-based treatments that not only promise effective results but also provide a luxurious, sensory experience. The brand emphasizes a natural and minimalist aesthetic in its product presentations, aligning well with current consumer trends towards cleaner, more sustainable beauty solutions. According to L’Oréal, Lan exemplifies a modern approach to beauty that resonates with an increasingly discerning market.
With a unique blend of advanced biotechnology and traditional Eastern healing practices, Lan has made significant strides in the beauty industry. Their collections, such as Time Orchid and Phoenix Brightening, harness techniques like molecular oil extraction to create effective products that simplify skincare routines. This innovative approach has played a crucial role in Lan’s success, generating around 200 million renminbi, or approximately $28.1 million, in revenue in 2020 alone. The brand also achieved remarkable sales milestones, ranking first in national facial oil sales in China for two consecutive years, according to data from Frost & Sullivan.
As a testament to its growth and technological capabilities, Lan has successfully reached 100 percent independent research and development across all its product lines this year. Vincent Boinay, head of L’Oréal’s North Asia Zone, emphasized the significance of this investment, stating that it underscores the crucial role that the Chinese market plays in L’Oréal’s global strategy. Boinay reiterated L’Oréal’s long-term commitment to partnering with local brands, aiming to redefine the beauty landscape and meet the expectations of today’s savvy Chinese consumers.
The founder of Lan, Xiaolan Ding, has eloquently tied the brand’s philosophy to Eastern cultural values, particularly the symbolism associated with orchids. She described the orchid as an emblem of noble purity and inner strength, reflecting the brand’s ethos of promoting exploration and growth. Through this partnership with L’Oréal, Lan aims to bring the essence of Eastern traditions and herbal wisdom to a global audience, enriching the beauty industry with its heritage.
L’Oréal’s BOLD initiative, launched in late 2018, exemplifies the company’s strategy of seeking minority stakes in promising beauty startups. Beyond Lan, BOLD has also invested in emerging beauty brands, including two Indian companies earlier this year, illustrating L’Oréal’s broader goal of tapping into diverse markets. Meicifang, in particular, has previously invested in several fragrance brands and has shown a keen interest in cultivating the blossoming beauty landscape in China.