The review’s final stage - which is being managed by R3 - focuses on three components: planning duties for Maybelline, TV buying and planning duties for the Active Cosmetics range. In addition to Optimedia and GroupM, the review also witnessed presentations from L’Oréal’s other mainland roster agency, Universal McCann.
GroupM is expected to pick up the Maybelline planning business, estimated at Rmb 300 million (US$40 million), and previously handled by Universal McCann. The account is the last piece of L’Oréal business handled by the Interpublic Group agency in China.
Meanwhile, the TV buying account is - according to a number of sources - likely to remain split between Optimedia and GroupM.
Only planning for the Active Cosmetics range, which includes Vichy and is currently handled by GroupM, remains undecided.
The review follows an earlier exercise this year which saw Optimedia add a swathe of L’Oréal China business, including print buying for Maybelline and the company’s luxury products division.
Over the past two years, ZenithOptimedia has consolidated a number of local-market L’Oréal accounts, including Malaysia, Thailand and Singapore, thereby strengthening the agency’s global grip on the $1.5 billion business.
“L’Oréal has been going through a media pitch and China is the only country that hasn’t been covered,” said a source involved in the review process. “Cost is one component, but looking at the overall quality of planning drives down cost.”
While L’Oréal has decided to consolidate with one agency in other parts of the world, it appears that the complexity of China’s media market has ruled out such an approach in the current review.
“It started with that intention in China, but it does not make sense here,” added the source.
The review comes as Maybelline steps up efforts to localise its mainland product range, launching a new consumer products DMI unit in Shanghai earlier this year (Media, 7 September).
