As the Division achieved a record 25% market share in 2023, Omar Hajeri, President, Professional Products, shares its winning strategy and the haircare trends driving growth.
Welcome to the Le Visionnaire – Espace François Dalle at the heart of Paris. As the iconic birthplace of hairstyling within L’Oréal, this building holds a special place in our hearts. Back in 1938, our visionary founder Eugène Schueller opened the Ecole des Arts de la Coiffure here. For 115 years, it’s remained the vibrant hub of our Professional Products Division, dedicated to training hairstylists all around the world. Today, this space has undergone a magnificent transformation, blending modern architecture with the preservation of its heritage. This is a symbol of the reinvention of the Professional Products Division.
The key figure of the year
For the first time, we achieved a record market share of 25%.
2023 in three keywords
PRO – Premiumisation, Reinvention, Omnichannel.
Premiumisation. The division keeps accelerating in a dynamic haircare market, which is premiumising. We see a strong appetite for the category: haircare routines, treatments, serums and oils have now become must-haves for beauty shoppers. Thanks to our powerful brand portfolio and our blockbuster innovations, such as Genesis, Metal Detox and Acidic Bonding Concentrate, we’re ideally positioned to cover all hair needs at all price points.
Reinvention. We have reinvented our relationship with all professionals. We continuously adapt to an ever-evolving market, characterised by the rise of independent stylists. They represent 60% of stylists in the US, and more than 50% in the UK and in Brazil. To serve all stylists at scale, independent or not, we took the decision three years ago to digitalise our B2B ecosystem. Digital now drives our relationships with all stylists:
- Through commerce, thanks to our B2B e-commerce platforms L’Oréal Partner Shop and SalonCentric.com.
- Through education, thanks to our online academy, L’Oréal Access.
- And through services, thanks to the recent UK launch of the first ever marketplace dedicated to beauty professionals.
There are seven million stylists in the world. Every week we interact with three million of them, and that’s just the beginning.
Omnichannel. We continue to capitalise on our strong salon footprint of more than 400,000 salons worldwide, leveraging the professional expertise of stylists. But we have strongly accelerated in e-commerce at the same time. And we’re also steadily extending our distribution in specialty retail. Together, e-commerce and specialty retail represent 35% of our total turnover.
The beauty trend of the year?
We’re seeing a huge trend towards haircare “skinification”. Today, haircare is becoming the new skincare.
What are you most proud of in 2023?
Two major achievements: in the US, Redken has become the number one professional haircare brand in retail and online; in China, Kérastase has become the first haircare brand to enter the exclusive top 15 beauty brands online.
And, above all, I’m proud of our 12,000 PPD specialists around the world, who help to shape the future of professional beauty.
What progress in Beauty Tech?
At the Professional Products Division, tech is at the heart of our DNA, opening up unlimited horizons and defining the future of professional beauty. Our latest innovation is a great illustration: AirLight Pro by L’Oréal Professionnel is the first professional hairdryer inspired by nature and powered by infrared-light technology.
What advances in sustainability?
The Professional Products Division has been deeply committed to sustainability for many years. Thus, 94% of our products are made in plants using renewable energy and 44% are made in water-loop factories that recycle water from the production phase. By 2030, 100% of the plastics used in our packaging will be either from recycled or bio-based sources. This year, we launched refills for Kérastase and L’Oréal Professionnel shampoos to promote more sustainable consumption.
As a market leader, the Division continues to engage all salons in the sustainable transition thanks to its “Hairstylists for the Future” programme, focusing on three main pillars: reducing water consumption, managing waste and reducing energy. The Division has also continued to roll out the Water Saver professional showerhead, saving up to 69% of water in salons. 100,000 salons will be equipped in the next three years.
How is your Division driving the industry?
In a dynamic premium haircare market, the Professional Products Division is uniquely positioned to cover all hair needs, at all price points. Thanks to our powerful brand portfolio and blockbuster innovations, our winning omnichannel strategy in salons, in e-commerce and in specialty retail gives us incredible potential reach. In the hairstyling industry, the Division is uniquely positioned to support and serve all stylists thanks to our strong B2B digital ecosystem, our powerful distribution channel in North America, and our unique education capabilities.
What are the most attractive opportunities for your Division?
There are three big opportunities for the Division:
- Strong consumer appetite for premium haircare and sophisticated routines. This trend is a fantastic growth driver for our brands.
- Progressive development in specialty retail, which lets us reach younger audiences.
- Strong potential in growth markets such as in China and India.
How is your Division future fit?
In a professional market undergoing profound transformation, the Division is in continuous reinvention. Thanks to its powerful brand portfolio, its cutting-edge innovation agenda, its winning omnichannel strategy and its powerful B2B data-driven ecosystem, the Division is ready to shape the future of professional beauty.