An estimated Rs 7-10-crore advertising account of L'Oreal is up for a pitch, according to reliable industry sources. The incumbent is McCann, which is handling both the creative and media mandate of the account.
Agencies have met up with those from the client's end and have presented their credentials. According to the sources, three agencies have been contacted already. A short listing is yet to occur for the second round.
Meanwhile, the L'oreal spokesperson said there have been discussions with various agencies, and that a hunt could be on for a creative and media partner. But in the same breath, the spokesperson declined from revealing details saying that the company would be in a position to make an announcement, only if something concrete were to emerge out of the discussions.
L'Oréal India is a 100 per cent subsidiary of the L'Oréal Group, which has been present in India since 1994. Currently, L'Oreal has seven international brands in the hair care, hair colour, and skin care and make up categories which include L'Oreal Paris, Maybelline New York, Garnier, Vichy, L'Oreal Professional, Matrix and Kerastase.
A number of the skin care heavyweights have set their sights on the highly lucrative Indian market. According to an estimate the spending power within this sector is Rs1.3 billion. With this amount of potential sales it's not surprising that many of the cosmetic giants currently experiencing flat sales are looking towards India.
L'Oreal is among the main protagonists marketing a comprehensive range of skin care products and cosmetics to entice the buyer. L'Oreal among others have not only invested in marketing and selling their ranges but have also acquired production facility's in the country itself, which has come as a bit of a shock to India's home grown companies who are now facing stiff competition for the first time.
Research has shown that Indian women are becoming far more demanding, with the largest growth sector in the anti-ageing sector in India, this is an area that L'Oreal has dominance in other regions of the world, with a proven quality product range.