The fragrance category is growing globally, as well. L’Oréal’s recent investments indicate the French company’s desire to penetrate two distinct but growing fragrance markets: China and the Middle East.

“Up until recently, the big conglomerates — L’Oréal, Lauder, Puig, LVMH, all those guys — have been relying on acquisitions of Western brands to get in the niche fragrance business. But also, they were relying on those brands to do well in Asia,” said Ohana. “There’s a new trend, which is for those conglomerates to go and also make investments in local brands.”

— Glossy on L’Oréal's investment in Amouage and Borntostandout. Read more in What’s behind L’Oréal’s niche fragrance investments.

L’Oreal SA is considering a potential investment in Omani luxury fragrance company Amouage, according to people familiar with the matter.

The French beauty group has been holding talks on the possible purchase of a minority stake in Amouage, the people said, asking not to be identified because the information is private. Amouage’s owner, the SABCO Group conglomerate, has discussed a valuation of more than €3 billion ($3.2 billion) for the business in any deal, according to the people.

— Read more in L’Oreal Eyes Stake in €3 Billion Perfume Brand Amouage at MSN.