The review, managed by R3 China, covered three specific L’Oreal components - Maybelline planning, TV buying, and planning duties for the Active Cosmetics range – and included roster agencies GroupM, Optimedia and Universal McCann.
The Maybelline planning component, estimated at RMB300 million (US$40 million) in billings, was previously handled by Universal McCann – and is thought to be the Interpublic Group agency’s last piece of L’Oreal business in China. Its shift to GroupM follows an earlier review this year which saw print buying for Maybelline and luxury products shift to Optimedia from Universal McCann.
The TV buying business, currently split between Optimedia and GroupM, is expected to remain split between the two agencies. The fate of Active Cosmetics planning, currently handled by GroupM, has yet to be decided.
The review follows a number of local market successes for Zenith, which has consolidated L’Oreal business in Malaysia, Thailand and Singapore over the past two years. Representatives from R3, GroupM, Optimedia and L’Oreal declined to comment.