“Our four Divisions play a major strategic role as they enable L’Oréal to cover all the aspects of beauty”
What are the recipes for success in L’Oréal’s Divisions?
In 2019, the four Divisions contributed to the Group’s very good year, at +8.0% like-for-like . Three out of four Divisions are outperforming their market, and the fourth, the Consumer Products Division, is continuing its progressive acceleration.
What are the big trends in the beauty market in 2019?
As for 2019, there were three key trends in the beauty market.
First, changes in categories, with strong growth in skincare continuing at +8% . Growth in skincare is the result of the effects of the exposome on skin ageing and allergies, the ageing of the worldwide population, and the strong development of Asia, where it is the number one category. This trend is going to last. Makeup meanwhile is slowing, particularly in the Western world . After a period of “colour bulimia”, we have seen the emergence of the nude makeup trend. But I must say, it’s a sure bet that bright colours will definitively come back.
Secondly, the beauty market is marked by the ever-increasing importance of tech. In apps and in services, beauty is relying on tech to offer consumers more and more possibilities, such as using their phones for “diagnosis” or virtual try-ons. Or for personalised products.
What is the Group’s response?
How can you explain the success of the Group’s big brands?
In a competitive environment that keeps on getting tougher and more fragmented, many observers had been predicting the end of the big brands. But that just hasn’t happened. Far from it. Our big brands have come out of it stronger!
Our billionaire brands have grown +9.1% above the Group’s average. La Roche-Posay has joined this private club to become our ninth billionaire brand. L’Oréal Paris is more than ever the number one beauty brand in the world , and Lancôme the number one luxury beauty brand in the world! These brands combine the agility they have adopted from indie brands and the power of their scale and hero products or mega franchises reaching impressive growth.
The Group is also building the future with new seeds such as Stylenanda, Valentino, from 2020 Mugler, Azzaro and from 2021 Prada.