Introduction
The Company, L’Oreal was founded in 1909 by Eugene Schuler. The revenue, operating income, profit for the year 2014 is. The Body shop is a famous subsidiary of the company catering to a wide range of skin and hair care products like shampoos soaps, conditioners, lipsticks , foundations, moisturizers and hair colour
L’Oreal’s key strengths are skin care, hair care and colour cosmetics contributing 80% to its retail sales and 50% to total industry absolute value growth in 2011 The balance 50% of the industry’s absolute growth is derived from oral care, bath and deodorants, boasting premiumisation.
The company keeps stressing on features like technological advancement, professionalism, use of spa technology resulting in reduced
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With the success of the products the company set up its own wholly-owned subsidiary for marketing its products in India. Currently the company also has its own manufacturing plant in Maharashtra, Pane
Main competitors are Procter and gamble, Unilever, Avon and Estee Lauder. The global scenario in beauty and personal care is dominated by these names with each having a specific niche area. As regards L’Oreal oral care and hair care are two categories which tend to pull its market share down though being innovative in its approach, the company does face local competition
L’Oreal experienced growth below the industry in 2011due to insignificant presence in oral care and bath care categories coupled with weak standing in the hair care category. The acquisition of Yves Saint Laurent somehow helped the company in times of the economic downturn.
L’Oreal, through SkinCeuticals, initiative has also invested in cosmetology and dermatology research. The Body Shop International runs 2,550 stores worldwide. Gal derma is a dermatology joint venture between L’Oreal and Nestlé.
The company Rankings are #71 in FT Global 500 as of June 2014
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The Body Shop is a good effort but requires focussed penetration
Hair care range of the company face severe competition from P&G and Unilever resulting in a declining market share
Opportunities
The Clarisonic range of products already popular in the US and France. Have bright prospects in China, given the consumer perception of the brand
The natural and organic segment is a great opportunity given the growing demand for these products worldwide. The company expansion into this field will further accentuate its brand image and revenue growth