Since A.G. Lafley (who hails from the cosmetics industry) became Chairman of the Board and CEO of Procter & Gamble globally in 2000, P&G has been quietly shifting its business development strategy focus to the cosmetics field, with its cosmetics sales increasing rapidly. However, L'Oreal has not been sitting idly by as P&G expands.
As early as 1989, P&G introduced Oil of Olay to China, which has now become one of the largest cosmetic brands in terms of sales in China. In addition to Oil of Olay, which targets the mass market, P&G also has a high-end brand, SK-II. However, when competing against L'Oreal, P&G often feels stretched thin given the vast size of the Chinese market.