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72 SEIZING THE POTENTIAL IN ALL MARKETS INTERNATIONAL North America 3,739 million of consolidated sales (1) 18.2% market share (2) 22.9% of group cosmetics sales Latin America 1,151 million of consolidated sales (1) 12.1% market share (2) 7.0% of group cosmetics sales (1) Consolidated cosmetics sales. (2) Excluding soaps, toothpaste and razors. Provisional 2008 estimates with YSL Beauté over a full year. Source: L’Oréal estimates.

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SEIZING THE POTENTIAL IN ALL MARKETS

INTERNATIONAL

North America 

€3,739 million of consolidated sales(1)

18.2%market share(2)

22.9% of groupcosmetics sales

Latin America 

€1,151 million of consolidated sales(1)

12.1%market share(2)

7.0% of groupcosmetics sales

(1) Consolidated cosmetics sales.

(2) Excluding soaps, toothpaste and razors. Provisional 2008 estimates with YSL Beauté over a full year. Source: L’Oréal estimates.

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Year by year, L’Oréal is patiently building up its positions on all continents, channel by

channel and category by category. With its rich and varied brand portfolio, the group

is ideally placed to tap into all beauty aspirations and meet the needs of all consumers,

whatever their income or expectations. By internationalising each of its brands, and moving

into new territories each year, the group is opening up vast prospects for growth.

EasternEuropep.76

NorthAmericap.78

LatinAmericap.80

Asia

p.82

Africa, Orient,Pacificp.84

WesternEuropep.74

Eastern Europe€1,380 million of consolidated sales(1)

16.6% market share(2)

8.4% of groupcosmetics sales

 Western Europe€7,382 million of consolidated sales(1)

22.7%market share(2)

45.1% of groupcosmetics sales

 Asia 

€1,844 million of consolidated sales(1)

2.7%market share(2) in Japan

10.9%market share(2) outside Japan

11.3% of groupcosmetics sales

 Africa, Orient,

Pacific

€862 million of consolidated sales(1)

14.3%market share(2)

5.3% of groupcosmetics sales

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Germany: a strategic breakthrough inskincare Already the leader in mass-market make-up, the Consumer ProductsDivision continued its strategic breakthrough in skincare, positioningits two brands—L’OréaL Paris and

G arnier—among the top three of the market. This achievement—the result of many years of innovations and of systematically renewing major franchises—strengthens the divisionin its ambition to capture top place inthe German skincare market.

The first competitive edge of the ConsumerProducts Division is its portfolio of differen-tiated yet complementary brands. The com-bination of the premium L’oréaL pariS rangewith Garnier, the accessible, natural brand,enables the division to reach out to different

customer profiles and cover all segmentsand price levels. Through this multi-brandpolicy, the division is now ranked number 2in this market.

CARE PRODuCtS FOREACH AGE GROuPL’oréaL pariS is perpetuating consumers’trust by developing sustainable franchisessuch as Revitalift, Age Perfect and Collagenfiller, each focused on a specific age group.A recent success, the Derma Genesis rangelaunched at the end of 2007 is already thebrand’s third largest franchise. UltraLift fromGarnier reached second position in the anti-wrinkle skincare segment, doubling its salesin three years.

Innovations are another decisive asset. Theyare extremely popular with customers, aswas demonstrated by the success of 

Sales in the Western Europe zone amounted to –0.3% like-for-like. The market continued to grow but at a much

slower pace. It weakened quarter by quarter in France and several southern European countries, especially in

luxury distribution channels. Extremely tight inventory management by distributors affected invoicing across

all divisions. However, the group’s sales trend was favourable in the United Kingdom and Germany, and grew 

sharply in Northern Europe (the Netherlands, Norway and Sweden). Overall, L’Oréal strengthened its positions

in Western Europe with market share gains in its Professional Products and Consumer Products Divisions. The 

group’s strategic advances in the zone included the Consumer Products Division’s breakthrough in skincare in

Germany.

Western Europe

International—

FASt GROWtH In GERmAnY 

All of L’Oréal’s ajor ieraioal brads are available i his cory. I 2007, hegrop becae arke leader ahead of esablished aioal brads, ad 2008 wasoce agai a year of rapid growh for L’Oréal. the Professioal Prodcs Divisiowo over 3,000 ew hair salos. Is sccess i he high-ed arke was drive byhe dead for k érastase ad shu ueMuraart Of hair. L’Oréal is he leader i LxryProdcs, ad recorded very sbsaial growh haks o GiOrGiO arMani, adbiOtherM, he brad wih he fases growh i he arke. the Coser Prodcs

Divisio achieved he highes growh, boosed by is breakhrogh i skicare. theAcive Coseics Divisio is raked firs i pharacies, ad rolled o he skinceuticaLs ad sanOfLOre brads.

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Caffeine Eye Roll-on care which became theleading eye care product on the market in just a few weeks. And at L’oréaL pariS, aserum was launched in the Derma Genesisline, a product which had never before beenavailable in mass-market distribution. Con-sumers rapidly adopted this new beautyroutine—300,000 serums were sold in oneyear.

tARGEtInG mAtuRE SKIn

In a country where 20% of the population isover 65, seniors represent a major opportu-

nity. Age Perfect and Re-Perfect franchisesfrom L’oréaLpariS grew by +14% in 2008 andthe brand took the lead in the mature skinsegment. Men represent another promisingtarget, and sales of the Men Expert rangerose +26% in 2008, hard on the heels of themarket’s leading brand after just threeyears.

United Kingdom:3 men’s fragrances inthe top 10 In 2008, Armani Diamonds for Men strength-ened the position of the Luxury ProductsDivision in the fragrance market in the UnitedKingdom. An instant success at its launch inOctober, the brand went on to benefit fromhigh visibility in key sales outlets and exten-

sive advertising support during the end-of-year holiday season. Three years ago thebrand was outside the “top 10” in men’s fra-grances, but today three of its fragrances arefeatured in the list. Armani Diamonds forMen joined Armani Code and Diesel Fuel forLife in the top 10 best-selling fragrances atDebenhams and House of Fraser, two iconicBritish department stores. GiorGio armani’ssuccess is equally dazzling in women’s fra-grances, with two perfumes ranked in thetop 10 at the same department stores.

Advice is vital in mass-market distribution. L’OréaL Paris provides consumers with toolsto self-diagnose their skin and choose the most appropriate product.As a result, sales have leapt by +20% in shops where these facilities are available.

Emporio Armani Diamonds for Men enteredthe top 10 best selling of men’s fragrancesin two of Britain’s most iconic department stores.

The Matrix recipeworks in France Launched in France only four years ago, themaTrix brand is now sold in 6,000 hair salonsaround the country, where sales grew by arecord +24% in 2008. In Paris, Joffo hairsalons, a symbol of Parisian hairdressing arenow working with maTrix.

Positioned as the most affordable, profes-sional brand, maTrix is seen as an effectiveanti-economic crisis response for a largenumber of salons. Today, maTrix is availablein 50,000 salons in Western Europe. One hun-dred and sixty educators provide local train-ing sessions on using maTrix products and

developing services in salons, and therebyhelping to convey the image of an affordable,high-quality, professional channel.

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Winning over andmodernisingRussian hair salons

Fully playing a true leadership role inthe Russian market, the ProfessionalProducts Division provides the right solution for all salons from the most accessible to the most luxurious end of 

the market. By focusing on hairdresser training, the division is playing anactive part in the emergence of modern,dynamic hair salons. In three years, itssales have more than doubled.

 L’oréaL profeSSionneL  was the first brandintroduced in Russia in 1996, and is todaypresent in 3,600 salons. Ranked number 1for image both by hairdressers andconsumers (2), the technological leadershipof its products, and its Paris fashion-basedinspiration are widely recognised. In thispremium salon segment, the divisionstrengthened its line-up in 2007 with the

launch of the American brand redKen 5Th a venue.

AFFORDABILItY WItH mAtRIXTo meet the needs of more affordable salonskeen to provide the best value for money,the division launched maTrix in 2003. Thebrand, whose sales grew by +53% in 2008,has already won over 5,600 salons, and isaiming to extend its network much further.

LuXuRY PROVES HIGHLY DYnAmICThe luxury salon segment has also been par-ticularly dynamic over the last few years.Present in more than 400 of the most pres-tigious salons, KéraSTaSe increased its sales

by +33% in 2008. Russian women appreciatehighly advanced beauty services and rituals,

L’Oréal’s strong trend of dynamic growth continued with like-for-like sales recording a +21.1% increase. However,

there was a change in pace in the final quarter due to difficulties experienced by some distributors in Russia and

Ukraine. Like-for-like growth remained strong in both of these countries, at +20.7% in Russia and +70.0%(1) in

Ukraine. Poland also recorded steady growth. Lastly, the other countries in the region, such as Romania, Croatia

and Slovenia, made significant contributions to growth. Among the major successes of the year, the Professional

Products Division strengthened its leadership position throughout the zone, particularly in Russia, while Lancôme 

achieved a market breakthrough in all countries.

Eastern Europe

International—

L’ORÉAL In RuSSIA

As soo as he arke opeed p i he early 1990s, L’Oréal rolledo is ajor brads. Sice 2007, L’Oréal has bee ber 1 icoseics i Rssia. Garnier is he skicare arke leader, all reailchaels cobied, ad L’OréaL Paris is he leadig ake-p brad.the Acive Coseics Divisio, ber 1 i is arke, has beeboosed by La rOche-POsay  ad innéOv, which have dobled heir salesi wo years. Lasly, i a booig selecive arke, he LxryProdcs Divisio recorded exreely rapid growh. (1) Excluding exports.

(2) Source: I mage study, hairdressers and consumers,

MASMI, 2008.

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Its success propelled Lancôme to the topposition in mascara sales in 2008. The fra-grances were just as well received, withMagnifique topping the sales chart at GUMin the month it was launched. The embodi-ment of French charm and elegance,Lancôme inspires the dreams of Russianwomen, and young women in particular. Toget closer to its customers, the brand hasalmost tripled its sales outlets in three years,while maintaining its highly selectiveapproach. Its sales grew by +21% in 2008.

Maybelline New York is a hit in Ukraine mayBeLLinenew yorK is continued to win overUkraine. The brand’s like-for-like salesincreased by +84%(1) in 2008, boosted by thes ta r masca ras Def ine-A-L ash and Volum’Express, and by Affinitone founda-tion. Specially adapted to suit the complex-ion of East European women, Affinitone is atremendous success in all countries in the

zone. By recruiting the top make-up artistsin Ukraine, mayBeLLine new yorK reassertsitself as a fashionable brand. It also goes tomeet its customers in universities, and isstrengthening its advisory role with beautycounsellors in the most dynamic sales out-lets. The brand is thus positioning itself atthe heart of Ukrainian women’s everydaybeauty concerns.

L’OréaL PrOfessiOnneL is ranked number 1 for image both by hairdressers and consumers. K érastase is highly selective in extendingits distribution.

Lancôme wins over Russian women In Russia, 9 out of 10 women know theLancôme brand. Thousands of them haveadopted its Hypnôse mascara, and joinedwaiting lists to buy Ôscillation vibratingpowermascara, launched exclusively in thecelebrated department stores GUM andTSUM.

(1) Excluding exports.

as reflected in the success of the hair beautyinstitute opened in one of Moscow’s mostluxurious salons, Sakura. In 2008, the newlycreated brand KéraSKin eSTheTicS made itsfirst appearance in a dozen high-end salonsin Moscow and Saint Petersburg. In a coun-try in which over 50% of luxury salons areequipped with beauty care booths, growthprospects for KéraSKin eSTheTicS are highlypromising.

40,000 HAIRDRESSERS

tRAInED In 2008

A key factor in rolling out the brands, educa-tion is crucial in enhancing hairdressers’technical skills and artistry. The ProfessionalProducts Division is investing hugely in edu-cation via its academy in Moscow, 17 techni-cal centres in provincial Russia, and a largenumber of demonstrations and artisticshows, including Colour Trophy, which everyyear brings together the country’s top haircolourant specialists. In all, these events andseminars generated more than 40,000 train-ing contacts in 2008.

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Garnier: 10 years of step-by-step conquest 

The G arnier saga in the United Statesmass market began in 1999. Ten yearslater, the brand posted solid growth with sales of close to 500 million dol-lars in 2008. Its positioning based onnatural technology and well-being,and its strategy of systematic innova-tion have won over American consum-ers. Flashback to G arnier’s break-through, category by category, to show how it became a must-have brand onone of the planet’s most challengingand competitive markets.

Garnier’s discovery of America came withNutrisse colourants. Ten years later, Nutrisserecorded +8% growth in 2008, climbing tofifth place with 8.5%(1) dollar share. This suc-cess makes it the category’s fastest growingbrand andGarnier is now the number 3 col-ourants manufacturer in the mass market.

FRuCtIS, tHE BRAnD’S SPEARHEADIn 2003, the brand got off to a very goodstart with the launch of Fructis, Garnier’shaircare and styling range. Indeed, within afew years, the Fructis range becamenumber 2 in its category. In 2008, its salesgrew, strengthening its market share, whichhas now reached 6.9%(1).

Fructis built on its young and dynamic imageby sponsoring American Idol , the TV showwhich generates over 600 million viewerseach year and has the highest audience rat-ings in the United States.

North America, which posted a –4.8% contraction in like-for-like sales, had a very difficult year, marked by a

gradual market decline together with a significant reduction in distributors’ inventories. In the fourth quarter 

there was a clear deterioration in sales, particularly in department stores. Despite the substantial drop in salon

visits, the Professional Products Division consolidated its number 1 position, thanks to growth in colourants

and a strong performance from its upmarket brands K érastase and shu uemuraart Of hair. In a flat market,

the Consumer Products Division increased its global market share, thanks to G arnier’s excellent performance 

in all its businesses and strategic advances in facial skincare. There was a slight erosion in the positions of the 

Luxury Products Division, while the Active Cosmetics Division continued its roll-out.

North America

International—

DOuBLE tRIumPH In mInERAL mAKE-uP

I a arke which is highly sesiive o iovaios, ieral ake-pejoyed he sroges growh raes i he arke. I reflecs woe’sgrowig ehsias for aral ake-p. Wih is Bare narale lie,L’OréaL Paris frher sregheed is posiios i 2008 wih he lachof ew ieral fodaios ad ascaras. meawhile, MaybeLLinenew 

 y Ork  also ade a breakhrogh i his arke wih is mieral Powerfodaio, which, i less ha oe year, becae he brad’s ber 1fodaio. Oher ew lies also prodced osadig perforaces

i 2008, sch as Ifallible Lipgloss by L’OréaL Paris ad Colossal Vol’Express mascara by MaybeLLine. L’Oréal was hs leadig heway i each of he ajor ake-p caegories i he uied Saes.

(1) Sources: Nielsen/IRI retail panels,

market share-value, 2008 total.

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A major player in the American professionalskincare market, the brand was acquired byL’Oréal in 2005. It is sold exclusively throughdermatologists, aesthetic doctors and medi-spas.

nutRItIOnIStE DOuBLES SALES

In 2007 Garnier tapped into the facial skin-care market with Nutritioniste. In two years,the brand has climbed to fifth position with5.4%(1) market share in 2008, compared with2.8%(1) in 2007.

The launch of Nutritioniste Anti-puff EyeRoller, alongside Skin Renew Anti-Sun Dam-age and UltraLift Deep Wrinkle Treatment,with high visibility in the sales outlets, ena-bled Nutritioniste to double its sales andrecord the strongest growth in the facial

skincare category in 2008.

Ôscillation by Lancômesets the make-up worldabuzz At the end of July, a limited edition of thisrevolutionary vibrating powermascara fea-tured in a preview launch at 12 carefullyselected outlets and Lancôme boutiques, inaddition to the Lancôme USA and Sephorawebsites. The 5,000 units available sold out

in just one day. By the time the nationallaunch took place in October, 32,000 womenwere already on the waiting list. Since itsintroduction, Ôscillation has been thenumber 1 mascara launch. It shares top posi-tion in this market with Définicils by Lancôme and was the number 1 shaded make-upproduct on the American make-up marketin the final quarter. The Ôscillation launchenabled Lancôme to take a 34%(2) share of the American prestige mascara market dur-ing the fourth quarter.

G arnier Nutritioniste Anti-puff Eye Roller was one of the top launchesin mass market skincare in 2008.

Ôscillation, the vibrating powermascara, was preview launched in 12 carefully selectedAmerican sales outlets.

SkinCeuticals a hit withthe American press The new SKinceuTicaLS antioxidant PhloretinCF™ was voted the best technological break-through and the best skin serum by Allure magazine. It achieved joint top ranking withCE Ferulic, the brand’s flagship product,which the American edition of Elle magazineranked as one of the world’s top five anti-ageing skincare products.

(1) Sources: Nielsen/IRI retail panels,market share-value, 2008 total.(2) Source: The NPD Group/NPD Beauty Trends.

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Dermocosmetics

makes it mark on

the South American

continent  Over the last ten years, the Active Cos-metics Division has been building upthe dermocosmetics channel in Latin

America, and steadily rolling out itsbrands in all the countries. It is already number 1 in Brazil, Mexico, Argentina,Chile and Venezuela. In 2008 its salesgrew by almost +19%; it has immense potential.

The Active Cosmetics Division is developinga very close partnership with Latin America’s10,000 dermatologists, who are increasinglybeing asked by their patients to provide aes-thetic treatments. Medical visits are playinga key role in prescription. With 100,000 visitsin 2008, La roche-poSay is the number 1 pre-scribed brand in Brazil. In addition, the

brands are taking many other initiatives tostrengthen their ties with the profession.

DRIVInG tHE CHAnnEL’S DYnAmISmThe division’s success is based on the develop-ment of the dermocosmetics channel by cre-ating dermocosmetic areas where dermoadvisors can provide qualified advice and per-sonalised skin diagnoses.

Another advantage is the quality of theproducts, and their perfect match with thespecific needs of consumers and derma-tologists in Latin America. In 2008, La roche-poSay launched Iso-Urea loção and  vichy created Normaderm SPF 15 anti-shine,

especially for Brazilian and Mexican skin.

In Latin America, sales rose by +6.7% like-for-like, improving quarter by quarter, although there were sharp

contrasts in trends. Argentina, Venezuela, Chile and Uruguay achieved strong growth. Brazil returned to growth

in the second half, driven by successes in hair colourants and the launch of the Elsève Reparação Total 5 haircare 

line from L’OréaL Paris. innéOv, a newcomer to Brazil, rapidly established itself in this market. The situation

remains difficult in Mexico. The development of dermocosmetics is one of the major breakthroughs in the zone,

and L’Oréal is actively contributing to creating this channel.

Latin America

International—

ARGEntInA: SALES DOuBLE In tHREE YEARS

Posig growh of +39% i 2008, L’Oréal is coiig o advace iArgeia, where sales have dobled i hree years. the grop isber 1 i he lxry arke wih LancôMe. two of is brads, GiOrGiO 

arMani ad raLPh Lauren, are raked i he op e for fragraces. thedivisio has opeed is firs k iehL’s sore righ i he hear of BeosAires. I he ass-arke sege, MaybeLLine new y Ork  is ber 1 iake-p. the Garnier brad, which was oly prese i hair coloraswih nrisse, is sregheig is presece by lachig a bodycarelie i 2008. L’OréaL Paris has also expaded is rage wih DeraGeesis ad is lachig is me Exper lie. I hair salos, L’Oréal isber 1, coverig boh lxry salos wih k érastase ad ore afford-

able salos wih Matrix. Lasly, he Acive Coseics Divisio is coi-ig o grow ad is he leader of he Argeiea derocoseics ar-ke, afer coribig o is eergece.

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Another of the brand’s success drivers is itscomplete range of haircare products attunedto the specific needs of Latin Americans,whose conquest has been spearheaded byits Shades EQ hair colourant. In just a fewyears, more than 4,000 luxury salons haveadopted redKen in Latin America.

Lastly, the final pillar is consumer education. vichy has been running large-scale preven-tion and education campaigns, such as“Skin Health Centres”, where dermatolo-gists and pharmacists carry out free, person-alised skin diagnoses in partnership with thebrand. La roche-poSay also organises aMelanoma Day screening operation in con- junction with dermatologists.

OutStAnDInG GROWtH POtEntIAL

Today, vichy and La roche-poSay are the onlybrands with a presence in most of the coun-

tries. Rolling out the portfolio will provide atremendous reservoir of growth for the divi-sion.

Customised care for Brazilian hair In July 2008, L’oréaL pariS launched ElsèveReparação Total 5, the first line of haircareproducts to repair the five signs of damagedhair—breakage, split ends, lacklustreappearance, dryness and stiffness. Theproduct’s bio-ceramide formula has beenadapted to the specific requirements of Bra-zilian hair by the L’Oréal laboratories in Rio

de Janeiro, replicating the hair’s naturalceramides for a deep repair treatment. Therange is represented by two Brazilianspokeswomen—Grazi Massafera and Deb-ora Nascimento—who symbolise the coun-try’s ethnic diversity. In just six months, morethan seven million units of Reparação Total 5were sold, and the line rose to second posi-tion in the haircare market, boosting thesales of Elsève, which has been one of thefavourite haircare brands of Brazilian womenfor many years. Building on this success,Elsève Total Repair 5 will be marketed inother Latin American countries in 2009.

In Brazil, its second largest market worldwide,La rOche-POsay  is the preferred brand for dermatologists.

Instant success for Innéov Firmness in Brazilianpharmacies, with almost 100,000 packs sold infour months.

“Dermocosmetic Advice Centres”raise the brand’s visibility andhelp attract new consumers who appreciate the quality of the advice they are offered.

Redken magicat work inLatin AmericaIn 2008, the American premium brand waslaunched in Uruguay and Colombia. Nowpresent in 13 Latin American countries,red-Ken 5Tha venue has become one of the majorbrands with sales growth of +20% or morein the last three years. Its dynamic education

drive has won over the top hairdressers, asproven by the irresistible attraction of itsannual symposiums.

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L’Oréal ParisembracingChinese beauty

Building on strong double-digit growth in China, L’OréaL Paris hasbecome the leading beauty brand inits distribution universe. China is now the brand’s largest market in the 

 world in the skincare category. Avail-able in only 6,800 sales outlets in 450 cities, the brand can tap into avast reservoir of growth potential inthe years ahead.

The success of L’oréaL pariS stems fromthree strategic choices made when it wasfirst launched in China. Firstly, a targetedroll-out in three segments with high addedtechnological value: skincare, make-up andcolourants. Secondly, the determination tointroduce its major global franchises, par-ticularly Revitalift and Derma Genesis. Lastly,product ranges specifically adapted to the

needs of Chinese skin, exemplified by UVPerfect, giving protection against UV andpollution, and the moisturiser HydraFresh.

LOCAL ADAPtAtIOnTo better understand consumer expecta-tions, L’oréaL pariS conducted thousands of tests in 2008, while drawing on the work of researchers at the L’Oréal laboratories inPudong. As a result, the brand is now rec-ognised as an expert in Chinese skin prop-erties. A second strategic choice was thedistribution of products through depart-ment stores, counting on the appeal of anaffordable luxury brand for the fast-risingmiddle classes.

L’Oréal is growing four times faster than the market in Asia as a whole, with a +16.3% rise in sales like-for-like.

The group made progress in Northern Asia and China as well as in South-East Asia, particularly in Thailand,

Indonesia and the Philippines. This achievement is largely due to successful initiatives in skincare across all

divisions. In Japan, a solid performance by the hairdressing brands, and the success of maybeLLine newy OrK  

and shuuemura have enabled the group to win market share. South Korea experienced rapid growth thanks to

breakthroughs by Luxury Products Division brands. In China, the group is advancing rapidly, driven in particular 

by the success of L’OréaL Paris. The “growth-relay” brands such as shuuemura andK iehL’s, are gradually being

rolled out across the zone.

Asia

International—

L’ORÉAL CHInA: 11 YEARS OF COnquESt

L’Oréal Chia was foded i 1997 ad is he cory’s secod larges cosmeicscompay. I he space of 11 years, L’Oréal has irodced mos of is major iera-ioal brads. the grop is mber 1 i he hair salo chael ad i lxry prodcs,where LancôMe is he marke leader. the grop has bil p he dermocosmeicscaegory i drgsores hrogh is vichy ad La rOche-POsay  brads. I CosmerProdcs, L’OréaL Paris is mber 1 i is disribio iverse, i addiio o hesccesses of Garnier ad MaybeLLine new y Ork , he leader i make-p. I 2008, hegrop coied o grow very rapidly i Chia, wih a icrease i like-for-like salesof +27.7%, especially i skicare where i is ow he origh leader, all chaelscombied.

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High quality advice, customer proximity andthe widely acknowledged skincare expertiseof KiehL’S is driving its success throughoutAsia, with spectacular growth in SouthKorea, Singapore and Hong Kong. In 2008,KiehL’S opened 24 new sales outlets.

In 2009, the brand will accelerate its roll-outin Japan and the other Asian countries.

Shu Uemuramakes its mark in AsiaIn June 2008, Shuuemura celebrated the 25th anniversary of its first store in Tokyo. Anopportunity for the brand to get back to theroots of the Japanese art of beauty, byorganising an exhibition. Also in 2008, itrecorded its highest growth rate in Japansince it was acquired by L’Oréal in 2001. Ini-tially almost exclusively focused on Japan,Shuuemura 

then moved into almost all Asiancountries. Today it generates over 70% of itssales outside its original market, with strongpositions in South Korea, Taiwan and HongKong. Its successes in skincare with cleans-ing oils and the Phytoblack anti-ageing skin-care line are strengthening its positions inthis key category across the region.

With its full brand portfolio, L’Oréal has risen to the number 1 spot in the Chinese skincare market,all channels combined.

shu uemura generates more than 70% of its sales outside its original market andis now the Japanese brand with the greatest 

international reach in its universe.

Kiehl’s moves toTokyo After Malaysia, the Philippines and Thailand,the cult New York brand opened its firstsales outlet in Japan in November 2008 inthe Isetan Shinjuku department store inTokyo.

PREStIGE AnD PROXImItY 

The Mandarin for L’oréaL pariS is Bali Oulayia,or “Elegance from Europe”. It is perceived asa prestigious, modern and innovative brand,representing the quintessence of quality andrefinement at an affordable price. Today, it isrecognised across the globe, and is appreci-ated for its proximity to Chinese women. Aproximity which the spokespersons of L’oréaL pariS—actresses Gong Li, Li Bing Bing andZhang Zilin—help to generate.

FOR mEn tOO

Launched two years ago, the Men Expertrange has been hugely successful, thanksprimarily to Hydra Energetic Turbo Booster,launched in 2008, and its spokesman, Chi-nese actor Daniel Wu.Initially sold exclusively through departmentstores, where it became the top-sellingmen’s skincare line in 2008, the Men Expertrange is now being rolled out in mass-mar-ket outlets to reach a broader range of cus-tomers.

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South Africa:L’Oréal number 1in ethnic beauty

sOftsheen·carsOn is the leading brandin the South African haircare market for products dedicated to African hair.In 2008, it further strengthened itsposition and grew by +28%, confirm-

ing its central role in the group’s over-all success in the country.

When L’Oréal acquired Carson in 2000, thebrand was leader in the South African mar-ket for products dedicated to African hair.Further to its merger with the Americanbrand Soft Sheen, the range now covers allmarket requirements from haircare products(relaxers, styling and haircare, and hair col-ourants) to personal care (deodorants, etc.),the largest segment in this market.

DARK AnD LOVELY, tHE PREFERREDFRAnCHISE FOR SOutH AFRICAnSSofTSheen·carSon meets all market expecta-

tions in terms of sophistication and pricelevel. The flagship franchise, Dark andLovely, is leader in relaxers with a 41% (1) share of the market. It has just been votedPreferred Haircare brand by a sample of 1,200 South Africans and enjoys a 96% brandawareness.

In addition to Dark and Lovely, the brandalso features Restore Plus, a line of highlyaffordable relaxers and haircare products,as well as Optimum Care, a premium offer-ing of high-tech relaxers and haircare prod-ucts for breaking hair.

StREnGtHEnInG SEnSItISED HAIR

Eighty-five percent of South African womenrelax their hair on average once every twomonths. Women with sensitised hair needproducts that nourish and strengthen it toprevent breakage. They want smooth, shiny

The year’s milestone event was the creation of a multidivisional geographic zone. This major strategic advance 

enables L’Oréal to step up its penetration of new markets in the Orient, such as Egypt, where the group established

a subsidiary at the end of 2008. The zone’s sales grew by +8.1% like-for-like, spurred on by countries in North Africa

and the Middle East, especially Dubai, Lebanon and Morocco. Australia made satisfactory progress. In India, there 

 were contrasting trends: the Professional Products Division was very dynamic, while Consumer Products experienced

a year of consolidation. Growth was strong in South Africa, mainly due to the success of sOftsheen·carsOn, the 

leader in ethnic haircare products, and G arnier which boosted its positions in skincare.

Africa, Orient, Pacific

International—

LAunCH PAD FOR SuB-SAHARAn AFRICA

L’Oréal has had a Soh Africa sbsidiary sice 1963, ad mos of he majorieraioal brads are markeed here. this powerfl presece, oably wihsOftsheen·carsOn, offers he grop a poral o he whole of Sb-Sahara Africa.

(1) Sources: Nielsen/IRI retail panels,

market share-value, 2008 total.

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The group aims to introduce L’oréaL profeS-SioneL and KéraSTaSe brands in the leadinghair salons and launch L’oréaL pariS andGar-nier for the mass market. As the ambassadorfor its Color Naturals colourant line, Garnier has chosen the famous Egyptian actressHend Sabry to boost the brand’s success.

hair that is easy to style and soft to the touch.The laboratories have a key role to play inthis respect.

SofTSheen·carSon products are designedthrough a unique collaboration between theevaluation centre in Johannesburg, theL’Oréal laboratories in Paris and the ResearchCenter for Ethnic Hair and Skin in Chicago.

tRAInInG FOR HAIRDRESSERS

A further key to its success is SofTSheen·carSon’sexcellent brand image among professionals,

due to locally available training programmesthat have been running for several years.Nearly 50,000 hairdressers are trained eachyear in the brand’s Academies or by a travel-ling team.

SofTSheen·carSon’s position is set to bestrengthened in 2009 thanks to local pro-duction and a robust launch plan.

Garnier: Quick take-upof Even & Matte bySouth African women In September, South Africa’s women con-sumers discovered Even & Matte—the newGarnier range of facial care products. Spe-cially developed for black skin, it helps toobtain a more even complexion and reduceshine. With its original formula and highly

affordable price, Even & Matte was aninstant success. And to communicate aboutthe product, Garnier chose as its ambas-sadress Connie Ferguson, a very famousactress in South Africa. Backed by high-profile exposure in sales outlets and sam-pling campaigns, Even & Matte was a strongcontributor to sales of Garnier skincare,which enabled the brand to grow nearlytwice as fast as the market in 2008.

As nine out of ten South African women relax their hair, they need the appropriate daily haircare products.sOftsheen·carsOn offers Optimum Care, an upmarket high-tech range of relaxers andhairecare products for breaking hair.

Launched in September 2008, Even & Matte isa strong contributor toG arnier’s skincare sales.

L’Oréalarrives in Egypt  In November 2008, L’Oréal made a strategicadvance by opening a multidivisional sub-sidiary in Egypt. In this country with a popu-lation of 80 million, the group’s brands canbuild on ancient traditions of beauty, agrowing middle class, an increasing appe-tite for international brands, and newly-forming distribution channels.