Retail & Consumer : L'OREAL
With revenue of more than €25 billion, France’s L’ORÉAL is easily the world’s largest cosmetics company. Its rivals will be trailing even further behind with the announcement that it has finalized the purchase of US-based IT Cosmetics for $1.2 billion. The latter’s sales of make-up and skin care products increased by more than 50% over the past year as demand for high-end beauty products boomed in the US.
IT Cosmetics will join other famous brand names in L’ORÉAL’s luxe division notably Lancôme, Yves Saint Laurent Beauté, Cacharel, Armani, Kiehl’s, Ralph Lauren, Helena Rubinstein etc.
L’ORÉAL manufactures and sells a wide spectrum of cosmetic and hair products. Its Consumer Products division sells brands like Garnier and Maybeline in mass market retail channels.
The dominance of the French giant could be explained by its exclusive focus on the beauty business unlike some of its rivals. Another reason could be the diversity of its numerous brands which means it can cover a wide spectrum of consumers. A continuous flow of trade is also ensured by a wide variety of sales channels like hair salons, department stores, drugstores, supermarkets, pharmacies as well as travel retail.
Jean-Paul Agon, CEO and Chairman of L’ORÉAL explained recently that the digital revolution started 5 years ago within his company. It has recruited some 1000 digital experts and is now in full swing in terms of digital communication and e-commerce.
At the recent COP 21 climate change conference in Paris, L’ORÉAL did its bit for the environment through its commitment to a 60% reduction of its carbon dioxide emissions and water consumption by 2020.
L’ORÉAL which employs nearly 83000 people worldwide is listed on the Euronext Stock Exchange in Paris.
Sources : Bloomberg, Ft.com, Korean times, lesechos.fr
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Online publishing, September 3rd, 2016