Chinese nationals will be the biggest consumer group for L’Oréal’s luxury cosmetics within two years, according to the Paris-based company, which is planning a big push into smaller cities, new product launches and the use of internet chat forums to extend distribution.

Jean-Paul Agon, chairman and chief executive of L’Oréal – which also sells mass-market products such as Maybelline mascara and Garnier shampoo – said that the logistics of rolling out the luxury business was the main challenge in the huge country, not worries about the economy.

“I’m not concerned about the economic slowdown in China – it’s very limited,” he said in Shanghai. “The penetration of luxury is just beginning – we are building the future of luxury in this country.” The group’s luxury cosmetic brands include Lanc?me, Helena Rubenstein, Kiehl’s and Giorgio Armani.