The agreement covers cosmetics products in the country only for now, but the French firm believes it will speed up its expansion and development throughout the continent, particularly in hair and body care.
“L’Oréal has been present in French Africa through its well-known French brands for many years. The awareness of these L’Oreal brands locally is high,” a company spokesperson tells CosmeticsDesign-Europe.com.
“Our objective now is to accelerate our distribution on the continent. Our ambition as a challenger in Africa is still the same: Become the number 1 beauty company in Africa.”
L’Oréal believes the partnership agreement with CFAO will speed up its expansion and development of its hair care and body care brands in Ivory Coast thanks to a manufacturing facility suited to the company’s needs.
CFAO will be the sole distributor of L’Oréal international consumer brands in Ivory Coast, including, L’Oréal Elsève, Mixa, Ultra Doux by Garnier, Maybelline New York & Narta to name a few.
CFAO will also give L’Oréal access to its distribution channels and its thorough knowledge of the African countries and markets, as well as its production facility for cosmetics and packaging components.
“The current CFAO distribution partnership agreement with CFAO is for Ivory Coast only. Based on the success of the partnership, this agreement might include other countries in the future,” the company spokesperson continues.
Strategy
As part of the deal, Sicobel, CFAO’s subsidiary, will be responsible for manufacturing L’Oréal products in Côte d’Ivoire.
These products are then sold to L’Oréal and can be shipped to other African markets or sold to the CFAO subsidiary for distribution in Ivory Coast.
L’Oréal says it is bringing to Sicobel its expertise in supplying quality raw materials, manufacturing its products and marketing its brands, as it looks to accelerate its expansion into key markets in French-speaking West Africa.
"The distribution and production partnership with CFAO is part of a strategic plan for the L'Oréal Group in Ivory Coast and French-speaking West Africa,” says Geoff Skingsley, L’Oréal’s Managing Director for Africa Middle-East Zone.
“Ivory Coast is a fast-growing market where beauty products have a strong appeal among local consumers. It is crucial for L'Oréal to increase its presence in these expanding markets.”
Richard Bielle, Chairman of CFAO's Management Board, says that its strategy in West Africa is to offer major international brands a manufacturing and distribution tool suited to the markets they wish to tap into.
“This new partnership is fully in line with CFAO's strategy of encouraging the consumption of innovative, quality products in West Africa," he adds.