10.28.10
2. L’Oréal
France
www.loreal.com
Beauty Sales: $23.3 billion
Key Personnel: Sir Lindsay Owen-Jones, company chairman; Jean-Paul Agon, chief executive officer; Frédéric Rozé, president and chief executive officer of L’Oréal USA; Laurent Attal, executive vice president, research and innovation; Nicolas Hieronimus, managing director, L’Oréal professional products division; Jean-Jacques Lebel, president, L’Oréal consumer products; Brigette Liberman, general manager, active cosmetics; Marc Menesguen, president, L’Oréal luxury products.
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, Mizano, Keraskin Esthetics. Luxury—Lancôme, Biotherm, Helena Rubenstein, Kiehl’s, Shu Uemura, Giorgio Armani, Ralph Lauren, Cacharel, Viktor & Rolf, Diesel, YSL Beauté. Active Cosmetics—Vichy, LaRoche-Posay, Inneov, SkinCeuticals; The Body Shop
.
New Products: Professional products—Inoa hair color; Consumer products—Renewal Lash Serum, Garnier Essentials, Maybelline New York Color Sensational lipstick; Luxury products—Lancôme Génifique, Hypnôse Drama mascara, Yves Saint Laurent Parisienne fragrance, Giorgio Armani Idole fragrance; Active cosmetics—Vichy Neovadiol Gf skin care, Vichy LiftActiv Retinol HA, Galderma Azzalure; The Body Shop’s Love, etc...
Comments: For the fiscal year, L’Oréal’s 100th, the leading global cosmetics player ultimately generated more than respectable sales of $23.3 billion, while at the same time gearing up for future growth. Cosmetics accounted for the largest share of revenues at $21.9 billion. Skin care and hair color showed slight gains. Sales were strongest in Western Europe, followed by Rest of the World and North America.
Jean-Paul Agon, chief executive officer, said that 2009 was a turning point. “We have emerged from it stronger and transformed, paving the way for the L’Oréal of tomorrow,” he said. “The good news is that the cosmetics market proved very resilient. Despite the exceptionally tough economic conditions, it ended up showing slight growth even though the start of the year was very difficult.”
To weather the crisis, L’Oréal introduced three major strategic changes to prepare for the future: broadening its consumer base with the target of winning a billion new consumers worldwide; a thorough transformation of the company to make it stronger and more flexible; and increased investments in R&D and advertising and promotion to accelerate future growth.
The performances of the divisions varied greatly. The Consumer Products Division reportedly grew faster than its market and strengthened its positions across the world, particularly in new markets. Luxury Products experienced a difficult year in a negative market context, although the integration of Yves Saint Laurent was successful. The Professional Products Division experienced a difficult year in sales terms, but set an all-time record for recruiting new salons, with market share gains in every region of the world. Active Cosmetics strengthened its global position as No. 1 in dermocosmetics. The Body Shop managed a very slight sales growth. And, Galderma achieved another year of double-digit growth and made significant market share gains.
Agon noted two highlights in a difficult year: advances in R&D and growth in the Rest of the World zone. Innovations including Inoa by L’Oréal Professionnel, Génifique and Absolue Precious Cells by Lancôme showed how L’Oreal’s dedication to science and R&D pays off. The company registered a total of 674 patents during 2009.
The gradual return to strong growth in the Rest of the World zone resulted in large market share gains in all divisions. This set of countries, which accounts for more than 85% of the world’s population, already represents 50% of the total cosmetics market, according to Agon. “This proportion is constantly rising,” he said. “The shift in the global cosmetics market is happening right now. The consumption of cosmetics products will follow population trends. This is a unique opportunity for L’Oréal’s development over the next 20 years.”
Environmental commitment also loomed large at L’Oréal as with other manufacturers, and contributed to a number of earth-friendly launches in all divisions. In the Professional Products Division, L’Oréal Professionnel launched its first-ever Ecocert certified organic shampoo in its Série Nature range. The Body Shop’s Love Etc... is the first internationally available fragrance to include Community Trade alcohol made from organic sugar cane. Garnier, a pioneer in packaging reduction, continues with its commitment to a 15% reduction in the average weight of its packaging by 2012.
In 2010, L’Oréal looked to capitalize on the growing nail care market with its acquisition of the Essie brand. The company also closed all U.S. operations of Shu Uemura Cosmetics.
Conditions remain positive for 2010. L’Oréal’s first half report for 2010 showed a strong increase in profits, with a high level of operating margin at 17.3% of sales, and a feeling of optimism for the future. Net profit rose 21% in the first half of the year, and was in part attributed to a strong demand for its Maybelline and YSL Beauté’s mascaras, Lancôme fragrances and the new Inoa hair colorant.d two highlights in a difficult year: advances in R&D and growth in the Rest of the World zone. Innovations including Inoa by L’Oréal Professionnel, Génifique and Absolue Precious Cells by Lancôme showed how L’Oreal’s dedication to science and R&D pays off. The company registered a total of 674 patents during 2009.
France
www.loreal.com
Beauty Sales: $23.3 billion
Key Personnel: Sir Lindsay Owen-Jones, company chairman; Jean-Paul Agon, chief executive officer; Frédéric Rozé, president and chief executive officer of L’Oréal USA; Laurent Attal, executive vice president, research and innovation; Nicolas Hieronimus, managing director, L’Oréal professional products division; Jean-Jacques Lebel, president, L’Oréal consumer products; Brigette Liberman, general manager, active cosmetics; Marc Menesguen, president, L’Oréal luxury products.
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, Mizano, Keraskin Esthetics. Luxury—Lancôme, Biotherm, Helena Rubenstein, Kiehl’s, Shu Uemura, Giorgio Armani, Ralph Lauren, Cacharel, Viktor & Rolf, Diesel, YSL Beauté. Active Cosmetics—Vichy, LaRoche-Posay, Inneov, SkinCeuticals; The Body Shop
.
New Products: Professional products—Inoa hair color; Consumer products—Renewal Lash Serum, Garnier Essentials, Maybelline New York Color Sensational lipstick; Luxury products—Lancôme Génifique, Hypnôse Drama mascara, Yves Saint Laurent Parisienne fragrance, Giorgio Armani Idole fragrance; Active cosmetics—Vichy Neovadiol Gf skin care, Vichy LiftActiv Retinol HA, Galderma Azzalure; The Body Shop’s Love, etc...
Frédéric Rozé, president and chief executive officer of L’Oréal USA |
Jean-Paul Agon, chief executive officer, said that 2009 was a turning point. “We have emerged from it stronger and transformed, paving the way for the L’Oréal of tomorrow,” he said. “The good news is that the cosmetics market proved very resilient. Despite the exceptionally tough economic conditions, it ended up showing slight growth even though the start of the year was very difficult.”
To weather the crisis, L’Oréal introduced three major strategic changes to prepare for the future: broadening its consumer base with the target of winning a billion new consumers worldwide; a thorough transformation of the company to make it stronger and more flexible; and increased investments in R&D and advertising and promotion to accelerate future growth.
The performances of the divisions varied greatly. The Consumer Products Division reportedly grew faster than its market and strengthened its positions across the world, particularly in new markets. Luxury Products experienced a difficult year in a negative market context, although the integration of Yves Saint Laurent was successful. The Professional Products Division experienced a difficult year in sales terms, but set an all-time record for recruiting new salons, with market share gains in every region of the world. Active Cosmetics strengthened its global position as No. 1 in dermocosmetics. The Body Shop managed a very slight sales growth. And, Galderma achieved another year of double-digit growth and made significant market share gains.
Agon noted two highlights in a difficult year: advances in R&D and growth in the Rest of the World zone. Innovations including Inoa by L’Oréal Professionnel, Génifique and Absolue Precious Cells by Lancôme showed how L’Oreal’s dedication to science and R&D pays off. The company registered a total of 674 patents during 2009.
The gradual return to strong growth in the Rest of the World zone resulted in large market share gains in all divisions. This set of countries, which accounts for more than 85% of the world’s population, already represents 50% of the total cosmetics market, according to Agon. “This proportion is constantly rising,” he said. “The shift in the global cosmetics market is happening right now. The consumption of cosmetics products will follow population trends. This is a unique opportunity for L’Oréal’s development over the next 20 years.”
Environmental commitment also loomed large at L’Oréal as with other manufacturers, and contributed to a number of earth-friendly launches in all divisions. In the Professional Products Division, L’Oréal Professionnel launched its first-ever Ecocert certified organic shampoo in its Série Nature range. The Body Shop’s Love Etc... is the first internationally available fragrance to include Community Trade alcohol made from organic sugar cane. Garnier, a pioneer in packaging reduction, continues with its commitment to a 15% reduction in the average weight of its packaging by 2012.
In 2010, L’Oréal looked to capitalize on the growing nail care market with its acquisition of the Essie brand. The company also closed all U.S. operations of Shu Uemura Cosmetics.
Conditions remain positive for 2010. L’Oréal’s first half report for 2010 showed a strong increase in profits, with a high level of operating margin at 17.3% of sales, and a feeling of optimism for the future. Net profit rose 21% in the first half of the year, and was in part attributed to a strong demand for its Maybelline and YSL Beauté’s mascaras, Lancôme fragrances and the new Inoa hair colorant.d two highlights in a difficult year: advances in R&D and growth in the Rest of the World zone. Innovations including Inoa by L’Oréal Professionnel, Génifique and Absolue Precious Cells by Lancôme showed how L’Oreal’s dedication to science and R&D pays off. The company registered a total of 674 patents during 2009.