L’Oreal, the world’s biggest cosmetics group, is feeling the effects of the slowdown in China and “brutal” trading conditions in South Korea and Taiwan, the company said.
The group’s turnover from luxury goods in South Korea is down 2 to 3 per cent this year after achieving 8 per cent growth last year.
L’Oreal’s luxury products, which include Yves Saint Laurent perfumes and Biotherm and Lancome creams, represent about 25 per cent of the company’s total sales.
South Korea and Taiwan are among Asia’s most export-dependent countries, making them vulnerable to weakness in global demand.
China, the main recent driver of demand for luxury goods, has suffered a slowdown this year.