Tmall and L'Oreal China Deepen Partnership

Plans to leverage consumer insights to drive product and marketing innovations in burgeoning male-grooming sector and beyond

HANGZHOU,China,Sept. 28,2018 -- Alibaba Group's (NYSE: BABA) Tmall,and L'Oreal China said today they'll work closely together to find new ways for the beauty group to tap into the Chinese market,leveraging data-driven consumer analytics and a new value chain that better connects consumers,products and channels.

Tmall Innovation Center (TMIC),the retail innovation arm of Tmall,will work closely with L'Oreal China to catalyze the consumer-to-business (C2B) approach,based on insights and trends generated from the 600 million-plus customer base across Alibaba's marketplaces.

"We have been very happy to ride the wave of the digital transformation together with Alibaba Group's Tmall. As the number-one beauty company in the China market,L'Oreal China will continue to deepen collaboration with innovation partners locally to unleash the value of data insights and create value for our consumers," said Stephane Rinderknech,CEO of L'Oreal China. "With our 'Beauty for All' mission and consumer centric strategy,our ultimate goal is to bring personalized products,services and experiences to each and every Chinese consumer."

The partnership's first initiative will focus on China's male-grooming industry. According to a white paper co-developed by TMIC and L'Oreal China Consumer Intelligence Team,online sales of men's grooming products have increased by more than 50% in each of the past two years. In the past year,62% of the male consumer pool between the ages of 15 and 50 said they used male-specific facial skincare products,showing a massive addressable market for male grooming products.

"With Tmall's unparalleled customer insight,we are committed to helping L'Oreal China offer its customers best-in-class personalized product experiences. Tmall has transformed product development in every area,from product innovation and brand building to consumer assets and channel management. We help brands discover new demand and markets as well as offer completely new customer experiences," said Jet Jing,President of Tmall.

TMIC and L'Oreal China precisely identify five profile groups of customers with specific preferences,such as those who go for men-only personal care products; those who need a full range of products and those only seeking face,hair and basic products.

Based on the findings of the white paper,L'Oreal China and Tmall will co-host a consumer-oriented marketing campaign,"Super U Carnival," both online and offline from September 25-30. Male consumers will be able to discover suitable grooming products with the help of data insights. At a pop-up store in Hangzhou,five immersive show rooms are tailored to customers' unique styles and preferences.

L'Oreal China is one of the international groups that has benefited from these consumer insights generated by TMIC. Established in April 2017,TMIC's mission is to help brands explore new ways to tap into the Chinese market by using precise market analysis,real-time consumer insights and test models. Including L'Oreal China,TMIC has already collaborated with 62 companies.

Earlier this week,L'Oreal China launched House99 flagship store on Tmall,together with David Beckham,the founder of House99. A full range of high-end male grooming products,including skin and body care,hair and shaving products,are now available on House 99's Tmall store.

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About Tmall

Launched in 2008,Tmall (www.tmall.com)caters to consumers looking for branded products and a premium shopping experience. A large number of international and Chinese brands and retailers have established storefronts on Tmall. According to Analysys,Tmall was China's largest third-party platform for brands and retailers in terms of gross merchandise value in 2017. Tmall is a business of Alibaba Group.

About L'Oreal China

L'Oreal,the world's largest cosmetics group,entered China in 1997. Headquartered in Shanghai with five representative offices,L'Oreal China has 22 brands,one Research and Innovation Center,one Training Academy,two Plants situated in Suzhou and Yichang,five distribution centers and employs over 8,100 people. Following twenty years of high-quality,solid,and sustainable growth,L'Oreal China has become the L'Oreal Group's second largest market and the No.1 in China cosmetics industry and has earned Universum's recognition as one of "China's Most Attractive Employers". As one of the best Corporate Citizens in China,L'Oreal China is fully dedicated to the "Sharing Beauty with All" program of L'Oreal Group.