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Presented by: Jane Lancia Nancy

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

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Presented by: Jane Lancia Nancy

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  1. Presented by: Jane Lancia Nancy

  2. 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

  3. 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

  4. Global issues Brand acquisition & expansion (culture awareness & demographic differences) New York Maybelline New York China Vichy Chicago Establishment of “L’Oreal Institute for Ethnic Hair & Skin Research”

  5. 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)

  6. Future trends integrated industrial chain (generally) Major beauty services Support production of material professional instruments & cosmetics Matched industry ornament color service image design Media exhibition advertisement beauty newspapers & magazines Base of talent resource beauty education

  7. Company AnalysisStrength Strong brands portfolio 12 core brands account for 90% of its sales Geographic presence Excellent advertising strategy Strong R&D capability 5 R&D Center: France: Aulnay, Pairs America: Clark Japan: Kawasaki China: Shanghai ( Sept.2005)

  8. L’Oreal Sales Analysis

  9. L’Oreal-Geographic presence

  10. 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

  11. Opportunity The rapid growing cosmetic market Market: 12%; $1 billion(2010); American old people: form 13% to 20% Potential in emerging market Brazil AfricaAsia Acquisition and alliance Diesel—Perfume Sanoflore—Organic cosmetics The Body Shop—International cosmetics brand

  12. Threat Fierce competition Moral issue on animal testing Naturewatch Compassionate Shopping Guide The Body Shop

  13. Competitors Domestic competitor Dior Abroad competitor Procter & Gamble Shiseido

  14. Dior • 1946, headquarter in pairs, France • Three categories: skin care, color cosmetics and perfume • Elegant and gorgeous design

  15. 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

  16. Shiseido • Japan brand , found in 1872 • The first lotion –Eudermine • Fit for Asia skin • Range of customers ( 20-50 –year-old) • Innovation

  17. 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

  18. Market Share

  19. Long-term Expansion in emerging markets Brazil Russia India China Cultivating and attracting high-qualified beauty talents Raising brand awareness Media sponsorships TV commercials

  20. Conclusion--Formulas StrengthWeakness Market Leader = Lose Market = Opportunity Treat Recommendation Promising Future

  21. Thank You!

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