In a bid to continue its Africa expansion march, French cosmetics giant, L'Oréal signed an agreement with Compagnie Française de l’Afrique Occidentale (CFAO), the specialized distributor from Cote D’Ivoire
In a move to further expand its presence in African market, Globally renowned cosmetics giant, L’Oréal has partnered With Compagnie Française de l’Afrique Occidentale (CFAO) to cover the production and distribution of cosmetics in the Ivory Coast.
As per a research report of Forbes magazine, CFAO, a multinational company, headquartered in France, will be the sole distributor of L'Oréal’s international consumer brands, including L'Oréal Elseve, Mixa, Ultra Doux and Maybelline to name a few. The company manufactures automobiles and pharmaceutical products and operates in Africa and France’s former colonies.
The partnership will allow L'Oréal to access CFAO’s extensive distribution channels, cosmetics production and packaging facilities in Africa, and gain from the CFAO’s experience in the market, being an existing player.
According to CFAO’s Chairman, Richard Bielle, the partnership supports CFAO’s strategy to facilitate the manufacturing and distribution of international brands and facilitate the consumption of world-class products in West Africa. Even though the deal allows for L’Oreal’s activities for a short period, the company is aiming at establishing Cote D’Ivoire as the hub for its African operations. L’Oreal seeks to expand its reach in the French speaking West African region with the aid of this partnership.
Reportedly, L’Oreal is strategically expanding its presence in Africa with a focus on countries such as Kenya, Egypt, South Africa, and Nigeria. In 2013, the brand had three branch openings in Nigeria, Kenya, and Ghana, and a new plant opening in Egypt. Currently, the brand is building its presence in Uganda also. These countries have great potential of growth as their cosmetics consumption is still 10 to 20 times lower than the developed countries.