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“ We have strengthened the Divisions with three strategic acquisitions in three key-categories ”

Marc Menesguen
President Consumer Products Division

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A PIVOTAL YEAR
FOR STRENGTHENING THE DIVISION

+1.6%

CONSUMER PRODUCTS
DIVISION SALES
GROWTH(1)

+2.9%

MAKE-UP
SALES GROWTH(1)

(1) Like-for-like.

INTERVIEW HIGHLIGHTS

In geographic terms, what are the key points?

In a context affected by a slowdown in the market, we achieved slightly weaker growth in 2014, with an acceleration in the fourth quarter. In North America, the market and the Division picked up in the second half of the year. We have made progress in Western Europe and reinforced our positions in the New Markets, especially in Africa, Middle East, in Asia, Pacific and in Eastern Europe. Our growth-relay countries like Turkey, India, Brazil and Indonesia made strong contributions to our growth.

Which categories drove growth in 2014?

Make-up, the Division’s number 1 category, grew thanks to the successful launches of Makeup Genius and Miss Manga mascara for L’ORÉAL PARIS, and the emergence of the brow segment for MAYBELLINE NEW YORK. Haircare remained core to our growth, with good performances from our two star lines, Elvive by L’ORÉAL PARIS and UltraDoux by GARNIER. Lastly, facial skincare provided leverage for conquering markets in Southern Asia, especially in the men’s segment.

How is the future of the Consumer Products Division being assured?

We have continued to build up our portfolio with leader and expert brands in key markets. As the top brand in skincare masks in China(1), MAGIC has a strong presence in strategic distribution channels. With NYX and its innovative business model, we are consolidating our positions in the make-up market. NIELY(2) meanwhile is enabling us to reach new consumers in Brazil, especially in the hair colour segment.

(1) Source: Mask segment, Nielsen Panel, market share value 2014. (2) Acquisition currently being finalised.

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HAIRCARE SUCCESSES

ELVIVE,
A GLOBAL SAGA

ULTRA DOUX
AND ITS BRITISH BLEND

FACIAL SKINCARE
SEDUCES ASIA

SAKURA WHITE BY GARNIER

SAKURA WHITE

A skincare
range for
radiant skin

Lancer la video

REVITALIFT V-SHAPER BY L’ORÉAL PARIS

REVITALIFT
V-SHAPER

A shaping effect to cater for the “V-shaped face” trend

FACECARE MASKS BY MAGIC

FACECARE MASKS
BY MAGIC

A widely-used
facial skincare
routine
in China

VOLCANO RED FOAM BY MEN EXPERT

VOLCANO RED FOAM
BY MEN EXPERT

A cleansing gel
designed especially
for men

The Consumer Products Division is winning over Asian consumers with high-quality products adapted to suit their expectations. This market is especially strategic in the men’s segment, where the brands Men Expert by L’ORÉAL PARIS and Garnier Men are performing well.

More

Number 1 in the Chinese market(1), Men Expert continued its resounding success, with the help of the Volcano Red Foam range. In the men’s anti-acne segment, which has strong potential, Acno Fight is contributing to Garnier Men’s growth in Asia. In women’s skincare, Sleeping Essence Sakura White night cream by GARNIER got off to a good start. L’ORÉAL PARIS, the number 1 skincare brand in China(2), is surfing on the powerful “V-shaped face” trend in Asia, with Revitalift V-shaper. MAGIC, the market leader in the masks segment(3), is driving facial skincare growth in China, where this beauty routine is widely used.

(1) Source: Men’s facial skincare segment, Nielsen Panel, market share value 2014.
(2) Source: Skincare segment, Euromonitor, market share value 2013. (3) Source: Mask segment, Nielsen Panel, market share value 2014.

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ALL LIGHTS ON DIGITALISATION

+69.5%

GROWTH IN
E-COMMERCE(1)

13.5%

OF SALES IN CHINA
VIA E-COMMERCE(2)

MORE

Accelerating the pace of digitalisation is one of the priorities of the Consumer Products Division. This means sharing best practices in e-commerce, which grew this year at +69.5%(1), and focusing on the quality and creativity of the content supplied to Internet users by the brands.

China is the number one contributor to e-commerce growth, with 13.5%(2) of sales made online. The L’ORÉAL PARIS Makeup Genius app is a first in the field of connected beauty. MAYBELLINE NEW YORK is launching the brow trend in the mass-market with an innovative platform, Eyestudio Brow, which offers online diagnoses, advice and video tutorials. This enables the brand to establish its expert status in this new and expanding segment.

(1) Like-for-like, including distributor feedback and L’Oréal estimates. (2) Including distributor feedback and L’Oréal estimates.

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TREND-SETTING MAKE-UP

Make-up, the number 1 category for Consumer Products, is crucially important, and the Division held on to its market leader position(1) thanks to the high-profile innovations of the L’ORÉAL PARIS and MAYBELLINE NEW YORK brands.

(1) Source: Make-up market, Panels and L’Oréal estimates, market share value 2014.

INFALLIBLE NAIL POLISH
With this two-step nail polish, L’ORÉAL PARIS offers a home manicure inspired by beauty institutes. What makes it so different? The combination of two formulas: a varnish enriched with pigments for intense colour, and a top coat to set the colour and add shine. Just what the consumers are looking for: flawless make-up from the tips of her fingers to the tips of her toes.

BROW DRAMA
With Brow Drama mascara for eyebrows, MAYBELLINE NEW YORK has taken an innovative stance on the latest hot trend: eyebrow make‑up. The brand is using its Eyestudio Brow digital platform, and a partnership with make‑up artist Maribeth Madron, to establish its expert status in eye make‑up.

MISS MANGA
With the launch of this mascara, reflecting a Japanese-inspired trend already featured on the catwalks, L’ORÉAL PARIS meets all the expectations of make‑up consumers, including the youngest age groups. It is a new and promising franchise for the brand.