10.18.11
2. L’Oréal
France
www.loreal.com
Beauty Sales:
$25.8 billion
Key Personnel:
Jean-Paul Agon, chief executive officer; Frédéric Rozé, president and chief executive officer L’Oréal USA; Laurent Attal, executive vice president, research and innovation; Jean-Philippe Blanpain, managing director, operations; Nicolas Hieronimus, managing director professional products division; Jean-Jacques Lebel, president consumer products division; Brigitte Liberman, managing director active cosmetics division; Marc Menesguen, president, luxury products division; An Verhulst-Santos, managing director professional products division.
Major Products:
Hair care, skin care, sun care, color cosmetics, toiletries and fragrances sold under a variety of brand names in different channels. Consumer—Garnier, L’Oréal Paris, Maybelline, SoftSheen-Carson. Professional—L’Oréal Professional, Kerastase, Redken, Matrix, Keraskin Esthetics. Luxury—Lancôme, Biotherm, Helena Rubenstein, Kiehl’s, Giorgio Armani, Ralph Lauren, Viktor & Rolf, YSL Beauté. Active Cosmetics—Vichy, LaRoche-Posay, SkinCeuticals, Sanoflore. Other—The Body Shop.
New Products:
Maybelline New York Great Lash Lots of Lashes Mascara, Baby Lips Lip Balm, L’Oréal Paris Matte Morphose, Garnier Pure Active Exfo-Brusher, Inoa, Matrix Optistraight, Kérastase Chronologiste, Wonderbrown, Redken Style Connection, Lancôme Hypnôse Precious Cells, Trésor in Love and Teint Miracle, Yves Saint Laurent Rouge Pur Couture, Ralph Lauren Big Pony, Maison Martin Margiela (untitled), La Roche-Posay Anthélios with Mexoplex, Skinceuticals Pigment Regulator; The Body Shop—Rainforest, Hemp Collection.
Comments:
In sync with L’Oréal’s CEO Jean-Paul Agon’s announcement that he would also be taking over the reins of chairman in March when the France-based beauty giant’s long-time leader Sir Lindsay Owen-Jones retired, Agon announced the financials for the year ended December 31, 2010. Sales for the period rose 5.6%, like-for-like to $25.8 billion. Agon declared that the economic crisis was over, and said the worldwide cosmetics market had returned to growth in 2010, with an estimated 4% increase. Corporate sales were highest in the consumer products division, but strongest growth was in luxury products. The company, which now claims a billion consumers, is looking to emerging countries and new markets to double that number over the next decade.
Commenting on the figures, Agon, said: “In the context of an upturn in the cosmetics market, L’Oréal achieved strong sales growth. The group advanced in all zones, all channels and all business segments; more dynamic than the market, it bolstered its position as the world’s number one in beauty.” He added: “L’Oréal is entering a new phase in its history, that of universalization and beauty for everyone.”
By division, consumer products accounted for 52.5% of sales, followed by luxury products (24.9%), professional products (15.0%) and active cosmetics (7.6%).
By business segment, skin care accounted for 27.2% of sales, followed by hair care (22.1%), makeup (21.2%), hair colorants (15.0%), perfumes (10.0%) and other (4.5%).
By region, Western Europe totaled 39.6% of sales, followed by New Markets (36.8%, of which 47.9% came from Asia Pacific, 20.9% Eastern Europe, 22.8% Latin America and 8.4% Africa, Middle East) and North America, 23.6%.
In 2010 several brands achieved what Agon referred to as “spectacular breakthroughs:” L’Oréal Professionnel (with its hair colorant Inoa), Maybelline Falsies mascara), Yves Saint Laurent and La Roche-Posay.
The L’Oréal Group is growing in Western Europe, improving its standing in North America, and continuing to gain consumers in new strategic markets, particularly in Asia and Latin America. In 2010, L’Oréal China became the group’s No. 3 cosmetics subsidiary, with sales of more than $1.35 billion, and China became L’Oréal’s third largest market worldwide. Looking ahead, Agon commented: “In 2011, for the first time, the New Markets may be the group’s number-one zone for sales.”
L’Oréal South America is shooting to double sales in Brazil by 2015 with the goal of adding 50 million new customers there in the next decade. L’Oréal’s Brazilian sales climbed 21% in 2010, making it the company’s seventh-largest country.
Globally, consumer product sales rose 5.5% like-for-like to more than $12.6 billion. The company credits the gain to the introduction of Youth Code, which marks a new era in mass market skin care, according to L’Oréal, and the successful debuts of Elséve in India, China and Southeast Asia. Professional product sales rose more than 4% to nearly $3.6 billion on the success of Matrix products in emerging markets and the continued expansion of Inoa hair colorants. Luxury product sales rose 7% to nearly $6 billion as Lancôme skin care posted double-digit gains and sales in Asia soared nearly 20%. Sales of active cosmetics rose 4.7% to more than $1.8 billion as Vichy posted an 18.4% gain in Latin America. Finally, The Body Shop posted sales in excess of $1 billion and received a boost from a 31% gain in e-commerce sales.
The consumer products division gained market share in North America and the New Markets. The makeup market, the No. 1 category in this division, saw growth across all zones. All the brands are reported to be growing, especially Maybelline, which achieved growth of 13.3% like-for-like, and which is rising strongly in all regions. It became the makeup market leader in the U.S. due to the success of Falsies mascara and Instant Age Rewind The Eraser foundation.
Garnier made its move into the facial skin cleanser segment for youth with the launch of Pure Active Exfo-Brusher. The brand is also following on its success by introducing deodorants around the world, and is adapting its formats and prices to reach as many new consumers as possible, with products such as Garnier Light skin care sachets in Thailand and Fructis shampoo sachets in India.
The division is also making progress in the men’s skin care category, especially in Western Europe where Men Expert is now No. 1 in the market, and in Asia where the Garnier Men launch complements the L’Oréal Paris Men Expert range.
In Western Europe, the division advanced thanks to makeup, hair care and deodorants. In North America, it gained market share in makeup, hair colorants, hair care and styling.
In the salon market, which recovered slightly over the previous year, the Professional Products Division achieved growth in 2010 of 4.1% like-for-like.
In 2010, L’Oréal claimed a number of winning launches in the salon channel, including ammonia-free hair color Inoa by L’Oréal Professionnel, SoColor by Matrix, and Wonderbrown.
In Western Europe, the salon division saw significant growth in Germany, the UK, Sweden and France. In North America, 2010 saw strong results with Matrix, Mizani and Pureology. The acquisition of two distributors, CB Sullivan and Peel’s, has completed the SalonCentric network. There has been strong growth in the New Markets of India, China, Indonesia, and also in the Middle East and Brazil, where L’Oréal Professionnel has opened its first institute for the training of young hairdressers.
The Luxury Products Division was up 7% like-for-like, and posted sell-out growth. It proved particularly strong in Travel Retail.
Lancôme returned to strong growth, boosted by its skin care lines, particularly Génifique, but also by the launch of Teint Miracle foundation. The fragrance Trésor by Lancôme is doing well, boosted by the launch of Trésor in Love.
Yves Saint Laurent returned to double-digit growth, due especially to fragrances such as L’Homme Yves Saint Laurent, La Nuit de L’Homme, the relaunch of Opium and the arrival of Belle d’Opium. The brand is also making a strong comeback in makeup with the launch of Rouge Pur Couture.
Giorgio Armani had a very good year, driven by women’s fragrance (Acqua di Gioia) and cosmetics (Eyes to Kill Excess mascara).
Kiehl’s also surged ahead in 2010 on all continents.
In Western Europe, the Luxury division remains No. 1, with sales led by France, Germany, the UK and Scandinavia.
In North America, the situation is a little more tenuous, but the Yves Saint Laurent, Kiehl’s and Viktor & Rolf brands are all showing strong sales growth. Ralph Lauren’s The Big Pony Collection proved highly successful.
In the New Markets, the division is growing faster than the market: in Asia, thanks to the dynamism of Travel Retail, China, and the good performances of Lancôme, Kiehl’s, Giorgio Armani and Shu Uemura; and in Eastern Europe, where the division is continuing to make strides.
Annual sales of the Active Cosmetics Division grew 4.7% like-for-like. All the brands and all the zones achieved growth. Across the world, the division proved No. 1 in dermocosmetics.
La Roche-Posay owed double-digit growth to Redermic, and Vichy’s success came with the LiftActiv franchise. SkinCeuticals recorded strong growth as well.
The Body Shop finished out 2010—a year of transition and reorganization—with like-for-like growth at -1.1%, affected by trends that varied between the developed countries and the New Markets. New innovative products are being launched in 2011 and the brand is revving up its entrance into the New Markets.
All the zones ended the year with positive growth.
Sales in Western Europe were up 1.7% like-for-like. In North America, 2010 exceeded the market growth trend at 4.1% like-for-like. New Market growth at 11.3% like-for-like shows the group is growing twice as fast as the market. The main driving forces are Asia and Latin America.
In Asia Pacific, L’Oréal recorded 11.2% growth like-for-like.
Growth in Eastern Europe at 8.1% like-for-like is strongest in Ukraine and Russia where makeup and Garnier prove popular, in addition to the continuing advances of the Luxury Products Division.
In Latin America, sales grew by 17.5% like-for-like. All the major countries in this zone are growing, particularly Brazil and Argentina. Mexico has returned to growth. The Consumer Products Division is the driving force of this expansion, with hair care and deodorants.
Sales grew by 4.1% like-for-like in Africa and Middle East.
L’Oréal USA acquired Essie Cosmetics, the iconic nail brand.
New global brand ambassadors signed on in 2010 included Jennifer Lopez and Rachel Weisz for L’Oréal Paris, and Penelope Cruz as a face of Lancôme.
For the first half of 2011, L’Oréal’s sales rose 5% to $14.24 billion. On a like-for-like basis, revenues were up 5.2%. Sales in Latin America rose 18% during the period, with a 13.5% rise in Asia Pacific, 3.1% in North America and 1.4% in Western Europe. Eastern Europe saw a drop of 3.8%.
France
www.loreal.com
Beauty Sales:
$25.8 billion
Key Personnel:
Jean-Paul Agon, chief executive officer; Frédéric Rozé, president and chief executive officer L’Oréal USA; Laurent Attal, executive vice president, research and innovation; Jean-Philippe Blanpain, managing director, operations; Nicolas Hieronimus, managing director professional products division; Jean-Jacques Lebel, president consumer products division; Brigitte Liberman, managing director active cosmetics division; Marc Menesguen, president, luxury products division; An Verhulst-Santos, managing director professional products division.
Major Products:
Hair care, skin care, sun care, color cosmetics, toiletries and fragrances sold under a variety of brand names in different channels. Consumer—Garnier, L’Oréal Paris, Maybelline, SoftSheen-Carson. Professional—L’Oréal Professional, Kerastase, Redken, Matrix, Keraskin Esthetics. Luxury—Lancôme, Biotherm, Helena Rubenstein, Kiehl’s, Giorgio Armani, Ralph Lauren, Viktor & Rolf, YSL Beauté. Active Cosmetics—Vichy, LaRoche-Posay, SkinCeuticals, Sanoflore. Other—The Body Shop.
Maybelline sales are rising strongly in all regions. In the U.S., success was due in part to Falsies mascara. |
Maybelline New York Great Lash Lots of Lashes Mascara, Baby Lips Lip Balm, L’Oréal Paris Matte Morphose, Garnier Pure Active Exfo-Brusher, Inoa, Matrix Optistraight, Kérastase Chronologiste, Wonderbrown, Redken Style Connection, Lancôme Hypnôse Precious Cells, Trésor in Love and Teint Miracle, Yves Saint Laurent Rouge Pur Couture, Ralph Lauren Big Pony, Maison Martin Margiela (untitled), La Roche-Posay Anthélios with Mexoplex, Skinceuticals Pigment Regulator; The Body Shop—Rainforest, Hemp Collection.
Comments:
In sync with L’Oréal’s CEO Jean-Paul Agon’s announcement that he would also be taking over the reins of chairman in March when the France-based beauty giant’s long-time leader Sir Lindsay Owen-Jones retired, Agon announced the financials for the year ended December 31, 2010. Sales for the period rose 5.6%, like-for-like to $25.8 billion. Agon declared that the economic crisis was over, and said the worldwide cosmetics market had returned to growth in 2010, with an estimated 4% increase. Corporate sales were highest in the consumer products division, but strongest growth was in luxury products. The company, which now claims a billion consumers, is looking to emerging countries and new markets to double that number over the next decade.
Commenting on the figures, Agon, said: “In the context of an upturn in the cosmetics market, L’Oréal achieved strong sales growth. The group advanced in all zones, all channels and all business segments; more dynamic than the market, it bolstered its position as the world’s number one in beauty.” He added: “L’Oréal is entering a new phase in its history, that of universalization and beauty for everyone.”
By division, consumer products accounted for 52.5% of sales, followed by luxury products (24.9%), professional products (15.0%) and active cosmetics (7.6%).
By business segment, skin care accounted for 27.2% of sales, followed by hair care (22.1%), makeup (21.2%), hair colorants (15.0%), perfumes (10.0%) and other (4.5%).
By region, Western Europe totaled 39.6% of sales, followed by New Markets (36.8%, of which 47.9% came from Asia Pacific, 20.9% Eastern Europe, 22.8% Latin America and 8.4% Africa, Middle East) and North America, 23.6%.
In 2010 several brands achieved what Agon referred to as “spectacular breakthroughs:” L’Oréal Professionnel (with its hair colorant Inoa), Maybelline Falsies mascara), Yves Saint Laurent and La Roche-Posay.
La Roche-Posay, one of L’Oréal’s Active Cosmetics brands, achieved double-digit growth, thanks to Redermic[+]. |
L’Oréal South America is shooting to double sales in Brazil by 2015 with the goal of adding 50 million new customers there in the next decade. L’Oréal’s Brazilian sales climbed 21% in 2010, making it the company’s seventh-largest country.
Globally, consumer product sales rose 5.5% like-for-like to more than $12.6 billion. The company credits the gain to the introduction of Youth Code, which marks a new era in mass market skin care, according to L’Oréal, and the successful debuts of Elséve in India, China and Southeast Asia. Professional product sales rose more than 4% to nearly $3.6 billion on the success of Matrix products in emerging markets and the continued expansion of Inoa hair colorants. Luxury product sales rose 7% to nearly $6 billion as Lancôme skin care posted double-digit gains and sales in Asia soared nearly 20%. Sales of active cosmetics rose 4.7% to more than $1.8 billion as Vichy posted an 18.4% gain in Latin America. Finally, The Body Shop posted sales in excess of $1 billion and received a boost from a 31% gain in e-commerce sales.
The consumer products division gained market share in North America and the New Markets. The makeup market, the No. 1 category in this division, saw growth across all zones. All the brands are reported to be growing, especially Maybelline, which achieved growth of 13.3% like-for-like, and which is rising strongly in all regions. It became the makeup market leader in the U.S. due to the success of Falsies mascara and Instant Age Rewind The Eraser foundation.
L’Oréal’s acquisition of Essie drew instant nail care sales. |
The division is also making progress in the men’s skin care category, especially in Western Europe where Men Expert is now No. 1 in the market, and in Asia where the Garnier Men launch complements the L’Oréal Paris Men Expert range.
In Western Europe, the division advanced thanks to makeup, hair care and deodorants. In North America, it gained market share in makeup, hair colorants, hair care and styling.
In the salon market, which recovered slightly over the previous year, the Professional Products Division achieved growth in 2010 of 4.1% like-for-like.
In 2010, L’Oréal claimed a number of winning launches in the salon channel, including ammonia-free hair color Inoa by L’Oréal Professionnel, SoColor by Matrix, and Wonderbrown.
In Western Europe, the salon division saw significant growth in Germany, the UK, Sweden and France. In North America, 2010 saw strong results with Matrix, Mizani and Pureology. The acquisition of two distributors, CB Sullivan and Peel’s, has completed the SalonCentric network. There has been strong growth in the New Markets of India, China, Indonesia, and also in the Middle East and Brazil, where L’Oréal Professionnel has opened its first institute for the training of young hairdressers.
The Luxury Products Division was up 7% like-for-like, and posted sell-out growth. It proved particularly strong in Travel Retail.
Lancôme returned to strong growth, boosted by its skin care lines, particularly Génifique, but also by the launch of Teint Miracle foundation. The fragrance Trésor by Lancôme is doing well, boosted by the launch of Trésor in Love.
Yves Saint Laurent returned to double-digit growth, due especially to fragrances such as L’Homme Yves Saint Laurent, La Nuit de L’Homme, the relaunch of Opium and the arrival of Belle d’Opium. The brand is also making a strong comeback in makeup with the launch of Rouge Pur Couture.
Giorgio Armani had a very good year, driven by women’s fragrance (Acqua di Gioia) and cosmetics (Eyes to Kill Excess mascara).
Kiehl’s also surged ahead in 2010 on all continents.
In Western Europe, the Luxury division remains No. 1, with sales led by France, Germany, the UK and Scandinavia.
In North America, the situation is a little more tenuous, but the Yves Saint Laurent, Kiehl’s and Viktor & Rolf brands are all showing strong sales growth. Ralph Lauren’s The Big Pony Collection proved highly successful.
In the New Markets, the division is growing faster than the market: in Asia, thanks to the dynamism of Travel Retail, China, and the good performances of Lancôme, Kiehl’s, Giorgio Armani and Shu Uemura; and in Eastern Europe, where the division is continuing to make strides.
Annual sales of the Active Cosmetics Division grew 4.7% like-for-like. All the brands and all the zones achieved growth. Across the world, the division proved No. 1 in dermocosmetics.
La Roche-Posay owed double-digit growth to Redermic, and Vichy’s success came with the LiftActiv franchise. SkinCeuticals recorded strong growth as well.
The Body Shop finished out 2010—a year of transition and reorganization—with like-for-like growth at -1.1%, affected by trends that varied between the developed countries and the New Markets. New innovative products are being launched in 2011 and the brand is revving up its entrance into the New Markets.
All the zones ended the year with positive growth.
Sales in Western Europe were up 1.7% like-for-like. In North America, 2010 exceeded the market growth trend at 4.1% like-for-like. New Market growth at 11.3% like-for-like shows the group is growing twice as fast as the market. The main driving forces are Asia and Latin America.
In Asia Pacific, L’Oréal recorded 11.2% growth like-for-like.
Growth in Eastern Europe at 8.1% like-for-like is strongest in Ukraine and Russia where makeup and Garnier prove popular, in addition to the continuing advances of the Luxury Products Division.
In Latin America, sales grew by 17.5% like-for-like. All the major countries in this zone are growing, particularly Brazil and Argentina. Mexico has returned to growth. The Consumer Products Division is the driving force of this expansion, with hair care and deodorants.
Sales grew by 4.1% like-for-like in Africa and Middle East.
L’Oréal USA acquired Essie Cosmetics, the iconic nail brand.
New global brand ambassadors signed on in 2010 included Jennifer Lopez and Rachel Weisz for L’Oréal Paris, and Penelope Cruz as a face of Lancôme.
For the first half of 2011, L’Oréal’s sales rose 5% to $14.24 billion. On a like-for-like basis, revenues were up 5.2%. Sales in Latin America rose 18% during the period, with a 13.5% rise in Asia Pacific, 3.1% in North America and 1.4% in Western Europe. Eastern Europe saw a drop of 3.8%.