Paris: L'Oreal, one of the world's biggest cosmetics makers, sees emerging market growth and its new hair colour "Inoa" boosting sales in its professional products arm that makes hair care ranges for hairdressing salons.

"We hope the market will speed up a bit," the unit's head Nicolas Hieronimus told Reuters in an interview. "Growth should remain very robust in all emerging countries. For the rest, it will depend on the capacity of European and American economies to speed up."

Worldwide, 2010 growth in sales of products for hairdressers is estimated at between 0.5 and 1.0 per cent, Hieronimus said, adding that he saw slight growth in the market next year and L'Oreal "would continue to do better than the market next year".

The unit makes L'Oreal Professionnel, Matrix, Kerastase, Redken and Inoa brands and accounts for almost 15 per cent of L'Oreal's revenues. Its sales fell 3.3 per cent in 2009 but have recovered to grow 4.5 per cent in the first nine months of 2010, to 2.05 billion euros (Dh9.77 billion) on a like-for-like basis, in a virtually stable world market.

The hairdressing market is closely linked to economic conditions and was hit hard by the crisis. Sales of haircare products by salons to their customers — at higher prices than in supermarkets — suffered.

"What we are seeing today, is that colouring and technical products — perming and defrizzing treatments — are growing more than the market average," Hieronimus said. He added that sales to salons of products for resale to customers were declining.

Emerging market sales currently account for only 20 per cent of the division's revenues, and there is a lot of potential for growth in countries such as India and China.

The group has high hopes for its entry level brand "Matrix", which is cheaper and easier to use, and whose sales are growing fast in emerging markets.

"Matrix is the brand that is growing most strongly," said Hieronimus.

Standard product

In mature markets, L'Oreal is relying on Inoa, its new ammonia-free colour product, marketed as "revolutionary" and with a price tag 15 per cent higher than a standard product. Inoa was launched first in France in September 2009, and L'Oreal has invested heavily in advertising which targeted consumers directly through television campaigns.

After a slower-than-expected start, which L'Oreal said was linked to a very specific application technique, the product now has a satisfaction rate of "over 90 per cent".

"We have conquered 76,000 salons worldwide, 20 per cent of which did not work with L'Oreal before," Hieronimus said.

Overall, L'Oreal estimated its professional products are used in 450,000 salons worldwide, and said it had signed up 45,000 salons in the first 10 months of 2010. Its world market share is around 27 per cent, making it the biggest maker of professional products.