Focus on Germany
Germany: a reservoir of growth in Europe
L’Oréal Germany recorded good growth for the third year running, with the Consumer Products Division and L’Oréal Luxe performing particularly well. Once again, the group maintained its position as the German beauty market leader(1).
L’Oréal has been No.1 in Germany for several years, and is continuing to strengthen its leadership
Nathalie Roos
Managing Director L’Oréal Germany
The 3rd largest European market for L’Oréal(2)
Although L’Oréal is the market leader, its market shares in Germany are below its European averages(3). Given the favourable economic context, there are plenty of opportunities to attract new consumers and develop categories, such as make-up, where market penetration is still low(4). The mass-market channel, as well as e-commerce, are important growth drivers for the German cosmetics market. The German mass-market channel is highly specific: the different types of retailers, such as drugstores and mass-market perfume stores, are very efficient in marketing brands while maintaining competitive pricing.
+3.1% In the Consumer Products Division, GARNIER was very dynamic, reflecting a string of successes both in facial skincare, with Miracle Sleeping Cream driving growth in this category, and in facial hygiene with Micellar Water. The launch of Ultra Doux, as “Wahre Schätze” – a product attuned to the strong underlying trend towards natural beauty – was very promising. Boosted by the success of Lipikar Baume AP+, LA ROCHE-POSAY was one of the fastest-growing dermocosmetics brands in 2015.
2015 also saw the launch of URBAN DECAY in Germany. The carefully orchestrated two-step strategy really paid off: the prelaunch on e-commerce websites and the 100% digital media communication approach were followed by placement in 27 top selective locations. Make-up is a really hot category with young German consumers tuned in to the latest trends. The URBAN DECAY palettes are a big hit, as are those by MAYBELLINE NEW YORK, which celebrated its 100th anniversary in 2015. ESSIE also posted very strong growth.
Digital acceleration in Germany
In Germany, e-commerce is the most dynamic channel(6), and L’Oréal online sales in the country are set to increase significantly over the next five years. L’Oréal Luxe contributes to almost a third of the country’s total selective market growth(6), driven in particular by an increase in e-commerce and the launch of three e-stores. In terms of digital communications, there were two major campaigns in 2015: the campaign for “Bronde” by L’ORÉAL PROFESSIONNEL reached millions of web users, while a high-profile commercial for L’ORÉAL PARIS Men Expert featured Wotan Wilke Möhring.
17% A clear vision: “Unser Leben schöner machen(8)”
The L’Oréal strategy in Germany is inspired by a single vision, at every level of the company “Unser Leben schöner machen”. For example, for retailers this means being a privileged partner helping to fuel market growth. On the community front, for the past ten years, L’Oréal has supported DKMS Life, an association that provides beauty seminars for women suffering from cancer.