Marketplace giant Alibaba has signed a three-year partnership with cosmetics conglomerate L’Oréal which will centre around the promotion of a circular economy in China’s beauty industry.
The signing ceremony took place alongside French president Emmanuel Macron’s three-day visit to the country, during which Alibaba’s chairman and CEO, Daniel Zhang, and L’Oréal’s chairman, Jean-Paul Agon, inked a memorandum of understanding.
Through the partnership, the duo hope to establish green and low-carbon standards, develop new products and create measurable circular economy solutions for the beauty market.
The deal will centre around three areas – low-carbon commodities, logistics, marketing and consumer education – and will strive to cover different sectors of the industry, from warehousing to distribution to recycling.
It builds on previous efforts by L’Oréal and Alibaba, which signed a deal in 2018 to use “environmentally-friendly packaging” for L’Oréal products sold in China.
In July last year, the beauty group also became one of the 24 companies to participate in Alibaba’s guidance to promote green consumption, offering brands ways to develop low-carbon products and achieve green logistics.
The agreement comes as China looks to strengthen its connections with France, as evidenced by Macron’s state visit, during which Chinese and French senior officials agreed to cooperate in industrial sectors, including aviation and high-end consumption.