Presented
by:
Jane
Lancia
Nancy
The L’Oreal history
• 1907 – found by Eugene Schueller
• 1912 -1920 Expanded to the US, Russia and Asia
• 1953 - Issued a license to Cosmair
• 1965 – Expand business into health and beauty products
through acquisition
• 1980s-1990s expanded acquisition
• 2000 - hair and beauty products
• 2001-now Acquisition hair care, skin care and color cosmetic
company
The history of cosmetics
• 3750 BC - First used in Egypt
• 7C-12C distillation procedure was invented
• 18C-19C technology was used in the production of cosmetics
• Mid 20C - About 500 cosmetics companies in the world
• Being monopolized by multinational company by the end of
20C
Global issues
Brand acquisition & expansion
(culture awareness & demographic differences)
New York
Maybelline New York
China
Chicago
Vichy
Establishment of “L’Oreal
Institute for Ethnic Hair & Skin Research”
Global issues
Governmental intervention
Localized laws (centrally planed economy)
High import taxes and tariff
Merchandise restrictions
Cultural differences (Yuesai & Mininurse)
Fierce competition (home, abroad,
counterfeits)
Future trends
integrated industrial chain (generally)
Major
Support
beauty services
production of material
professional instruments & cosmetics
Matched industry
ornament
color service
image design
Media
Base of talent resource
exhibition
advertisement
beauty newspapers & magazines
beauty education
Company Analysis
Strength
12 core brands account for 90% of its sales
Strong R&D capability
5 R&D Center:
France: Aulnay, Pairs
America: Clark
Japan: Kawasaki
China: Shanghai ( Sept.2005)
L’Oreal Sales Analysis
L’Oreal-Geographic presence
Weakness
Weak performance in some areas
North America: Shampoo & Conditioners—P & G
In 2007: Europe:52.7% North America: 27.6% Other:19.7%
German: Hair coloration– Henkel
Western European: Hair styling
Lack of uniform advertising support
Opportunity
The rapid growing cosmetic market
Market: 12%; $1 billion(2010);
American old people: form 13% to 20%
Potential in emerging market
Brazil Africa Asia
Acquisition and alliance
Diesel—Perfume
Sanoflore—Organic cosmetics
The Body Shop—International cosmetics brand
Threat
Fierce competition
Moral issue on animal testing
Naturewatch Compassionate Shopping Guide
The Body Shop
Competitors
Domestic competitor
Dior
Abroad competitor
Procter & Gamble
Shiseido
Dior
• 1946, headquarter in pairs, France
• Three categories: skin care, color cosmetics
and perfume
• Elegant and gorgeous design
Procter & Gamble
• Second –largest professional hair production company
• The market share of 24%, L’Oreal is 29%
• More than 300 brands in over 160 countries
• Focused on hair care market in 2000
• The diversity in product
• Major retailer-Wal-Mart
Shiseido
• Japan brand , found in 1872
• The first lotion –Eudermine
• Fit for Asia skin
• Range of customers ( 20-50 –year-old)
• Innovation
Recommendations
Short-term
“Green” products
Focus on campus
Sponsoring school activities
Holding beauty lectures
High-level image stores
Image information consulting
Beauty clubs for regular customers
Market Share
Long-term
Expansion in emerging markets
Brazil Russia India China
Cultivating and attracting high-qualified beauty talents
Raising brand awareness
Media sponsorships
TV commercials
Conclusion--Formulas
Strength
Market
Leader
Weakness
=
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Opportunity
Treat
Recommendation
Promising Future
Lose
Market