The L'Oreal Group Essay

The L’Oreal Group is the world’s largest cosmetics and beauty company. [3] With its registered office in Paris and head office in the Paris. L’Oreal’s famous advertising slogan is “Because I’m worth it”. In mid 2000s this was replaced by “Because you’re worth it”. In late 2009 the slogan was changed again to “Because we’re worth it” following motivation analysis and work into consumer psychology of Dr. Maxim Titorenko. The shift to “we” was made to create stronger consumer involvement in L’Oreal philosophy and lifestyle and provide more consumer satisfaction with L’Oreal products.

L’Oreal also owns a Hair and Body products line for kids called L’Oreal Kids, the slogan for which is “Because we’re worth it too”. L’Oreal purchased Synthelabo in 1973 to pursue its ambitions in the pharmaceutical field. Synthelabo merged with Sanofi in 1999 to become Sanofi-Synthelabo. Sanofi-Synthelabo merged with Aventis in 2004 to become Sanofi-Aventis. HISTORY In 1907, Eugene Schueller, a young French chemist, developed a hair dye formula called Aureole. Schueller formulated and manufactured his own products, which he then sold to Parisian hairdressers.

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In 1909, Schueller registered his company, the Societe Francaise de Teintures Inoffensives pour Cheveux (“Safe Hair Dye Company of France” literally “French Society for Inoffensive Hair Dyes”), the original L’Oreal. Schueller demonstrates his capacity for new ideas by creating his first hair dye formulae under the name Oreal, using a blend of harmless chemical compounds. The dyes are an outstanding breakthrough at the time, providing a subtle range of colours in contrast to other methods on the market, which use henna or mineral salts but produce a bright, somewhat artificial look.

With the war finally over, a new age begins. Around the world, women are working, earning money, growing more concerned about their appearance and seeking ways to prevent grey hairs from revealing their age. Oreal hair dyes are a great success, even beyond the borders of France, breaking new ground in Italy in 1910, Austria in 1911 and the Netherlands in 1913, even reaching as far afield as the United States, Canada, the UK and Brazil. The guiding principles of the company, which eventually became L’Oreal, were research and innovation in the field of beauty. In 1920, the small company employed three chemists.

By 1950, the research teams were 100 strong; that number reached 1,000 by 1984 and is nearly 2,000 today. A talented Jack-of-all-trades, Eugene Schueller continues to turn his hand to a host of endeavours, making celluloid, varnish and plastics (even setting up a company in Russia! ). His successes in industry only serve to strengthen his belief that research and innovation form the cornerstone of growth and success. Schueller continues to innovate in the beauty industry, unveiling L’Oreal d’Or, a groundbreaking hair-lightening product creating golden tints and lending an even more natural look to blond hair.

L’Oreal has five worldwide research and development centers: two in France: Aulnay and Chevilly; one in the U. S. : Clark, New Jersey; one in Japan: Kawasaki, Kanagawa Prefecture; and in 2005, one was established in Shanghai , China . A future facility in the US will be in Berkeley Heights, New Jersey. Shampoo — taken from the Hindi word “champo”, meaning massage or to knead — has yet to become an everyday product. Not surprising given that shampoos made by hair stylists, using black soap boiled in water mixed with soda crystals, hold little appeal among consumers.

L’Oreal finally gives those in the industry a real shampoo without soap (fatty alcohol sulphates) that is considerably gentler on the hair and sold in 1L bottles. Known as “Dopal”, the product range is still sold today as “Dop”. On 4th April 1939, the Societe des Teintures Inoffensives pour Cheveux officially changes its name to L’Oreal, with premises at 14 Rue Royale in Paris, still the company’s head office today. After three years’ market research in the USA, the world’s largest cosmetics market, L’Oreal decides to cross the Atlantic. COSmetics for hAIR”, shortened to COSMAIR, becomes the exclusive representative for L’Oreal hair products in the United States, marking a major international milestone in company growth MILESTONE Laboratoires Garnier have been successfully marketing various hair products since the 1920s: Garnier plant-based lotion, Moelle Garnier energy-boost shampoos with natural extracts, Moelle Color hair colourant and so on. The purchase of Garnier in 1965 enables L’Oreal to acquire a portfolio of complementary haircare products with an organic positioning – a different approach to haircare.

On 17 March 2006 L’Oreal purchased cosmetics company The Body Shop for ? 652 million. Concentrating on hair colour, skin care, sun protection, make-up, perfumes and hair care, the company is active in the dermatological and pharmaceutical fields and is the top nanotechnology patent-holder in the United States. In 1961, L’Oreal buys Cadoricin and acquires a controlling stake in LaSCAD to gain a foothold in the huge market for “mass-market” cosmetics sold in department stores, variety stores, supermarkets and general stores, as well as through stalls and other outlets.

The move marks L’Oreal’s initial entry into mass-market retail. L’Oreal is a listed company, but the founder’s daughter Liliane Bettencourt and the Swiss food company Nestle each control over a quarter of the shares and voting rights. In recognition of its spectacular yet sound development, the L’Oreal Group is listed on the Paris Stock Exchange in 1963 which gives it access to new financial resources. The Group’s market capitalisation has increased more than 750 times since 1967.

L’Oreal obtains the Ralph Lauren licence, and continues the fabulous saga of Polo fragrances for men, created in 1978. The acquisition anchors L’Oreal’s position in the Luxury Products market in the United States and in luxury men’s fragrances. With an eye to expanding its fragrance business, L’Oreal collaborated with cutting-edge designers. It teams up with Paloma Picasso, fashion and jewellery designer, daughter of a symbolic figure and a charismatic spokeswoman of the 80s. L’Oreal puts its energy behind a brand new distribution network: mail-order catalogues.

Teaming up with Les 3 Suisses, one of Europe’s leading mail-order companies, the Group launches a catalogue of beauty products, known as Club des Createurs de Beaute (Club of Beauty Creators). In 2008, L’Oreal becomes the sole owner of CCB. PARIS and NORTH BRUNSWICK, N. J. , Jan. 14 /PRNewswire/ — L’OREAL and Hurel Corporation (“Hurel”) today jointly announced that they have achieved the initial milestone of a research and development collaboration to create a new and transformational in vitro test for potential allergic reactions to substances that could come into contact with the skin.

The new device, named “Allergy Test on a Chip™,” is intended to comprise a technological substitute for the animal test known as the local lymph node assay (“LLNA”). L’Oreal got its start in the hair-color business, but the company soon branched out into other cleansing and beauty products. L’Oreal currently markets over 500 brands and many thousands of individual products in all sectors of the beauty business: hair color, permanents, hair styling, body and skin care, cleansers, makeup and fragrances. L’Oreal is a French based cosmetics company.

It is principally engaged in the production and marketing of make-up, perfume and fragrances, haircare, styling and skin care products. It offers cosmetic products to individual and professional customers. Through Galderma, the company is also engaged into dermatology. The company operates in over 130 countries through 25 international brands. It operates in East and Western Europe, North America, Latin America, Asia and Africa and Orient Pacific. The Group’s principal activities are the development, manufacture and marketing of cosmetics and dermatological products.

The Group operates in Cosmetics, The Body Shop and Dermatology segment. Cosmetic segment includes consumer products, professional products, luxury products and active cosmetics. The Body Shop segment offers a broad range cosmetic products and toilet of natural inspiration. Dermatology products are manufactured via Galderma, a joint venture with Nestle SA. Some of their brands include Garnier, Redken, Maybelline, Kerastase, Matrix, PuroOlogy and Softsheen Carson, Lancome and YSL Beaute. The Group mainly operates in Western Europe and North America.

In 2008, the Group acquired Canan, Columbia Beauty Supply and Yves Saint Laurent Beaute. In 1973 Gemey, a make-up brand specialising in foundations and face powders, has been present in France since 1923. Cult products include Fluid Make-up, the first fluid foundation in a tube, and Derniere Touche, the first compact powder. With the acquisition of Gemey, L’Oreal gains a significant position in the volume retailing make-up market in its country of origin. In 1976, L’Oreal buys out the mascara brand Ricils and attaches it to Gemey to expand its offer in all make-up segments.

In 1974 The agreement, which adds to the stability of the Group’s shareholders, is also conducive to L’Oreal’s international development in certain markets, particularly Japan, the future bridgehead of L’Oreal’s expansion in Asia. Artcurial, a contemporary art centre established by L’Oreal in 1975, launches a new concept: issuing so-called “multiples” in collaboration with the artists. The centre approaches some big names in the art world, including Sonia Delaunay, Man Ray, Armand, Berrocal and the Lalannes. They all design sculptures, ceramics and jewellery produced as limited editions.

All want their designs to have everyday relevance and be affordable to a large public. In 1997 L’Oreal sells Artcurial to focus once more on the beauty sector. In 1981 establioshment of laboratories GALDERMA. The result of a 50/50 association between Nestle and L’Oreal, Galderma (whose slogan is “Committed to the future of dermatology”) is devoted to the worldwide development and marketing of world-renowned dermatological remedies effective against skin, hair and nail complaints (acne, psoriasis, onychomycosis, rosacea,etc. ).

An independent organisation active in the strictly controlled field of healthcare, which is to enjoy worldwide success. ? €17,5 billion consolidated sales in 2009 ? €609 million in R&D investments CORPORATE GOVERNANACE Current members of the board of directors of L’Oreal are: Jean-Paul Agon, Francisco Basco, Werner Bauer, Liliane Bettencourt, Francoise Bettencourt Meyers, Peter Brabeck-Letmathe, Charles-Henri Filippi, Xavier Fontanet, Bernard Kasriel, Marc Lacharriere, Jean-Pierre Meyers, Lindsay Owen-Jones, Franck Riboud, Annette Roux and Louis Schweitzer. he Bettencourt family and Nestle will become direct shareholders of L’Oreal with, respectively, 27. 5 % and 26. 4 % of the capital and, respectively, 28. 6% and 27. 5 % in voting rights The two shareholders of Gesparal, Mrs. Liliane Bettencourt and her family, and Nestle, have agreed to propose the absorption of Gesparal by L’Oreal. The Gesparal Holding Company owns 53. 8% of the Capital and 71. 7% of voting rights of L’Oreal. The Bettencourt family and Nestle own respectively, 51% and 49% of Gesparal. FINANCIAL PERFORMANCE Diversity is in the heart of the activity of L’Oreal.

Our business is a celebration of diversity. The appearance and physical features of each person are unique, with differences that include age, skin and hair type. It is founded on respect for those differences and the capacity to match personal diversity with the diversity of our products and brands. Because there is no single model of beauty, the group has 19 distinct and complementary brands enjoying worldwide recognition, each with different roots and offering the variety needed to match different physical features, tastes and lifestyles.

Our brands have their roots not only in Europe but also in North America and Asia. • SOFTSHEEN. CARSON, the world leader in haircare products for people of African descent, • LANCOME and L’OREAL PARIS, epitomizing European tastes and traditions, • SHU UEMURA, a standard bearer for Japanese style, • MAYBELLINE NEW YORK and REDKEN, trendsetters for the US and beyond, • SHU UEMURA, a standard bearer for Japanese style, • ARMANI, a byword for Italian style. We are dedicated to understanding and serving that diversity effectively with products attuned to each culture, each need.


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