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Issue
23 — November 2000 |
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L'Oréal, which was founded in its earliest form in 1907 by Eugene Schueller, a
French chemist, stands out amongst the giants of the cosmetics and toiletries
market.
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L’Oréal
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| Established |
1907 |
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| 1999 sales |
FF
70.5 bn (€ 10.8 bn) |
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| 1999
operating profit |
FF
8.6 bn (€ 1.3 bn) |
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| Website |
www.loreal.com |
While
its main rivals, such as Unilever and Procter & Gamble owe much of their strength
to detergents and food among other categories, L'Oréal focuses clearly on cosmetics
and toiletries. In fiscal 1999, cosmetics accounted for over 97.5% of total L'Oréal
sales with dermatology adding a further 1.8%. L'Oréal may be large, but it's still
growing. In the year to 31 December 1999, L'Oréal saw consolidated sales increase
by over 12% to € 10.8 bn while operating profit rose by more than 18% to
€ 1.3 bn. In that period cosmetics sales grew by 11.9% and dermatology turnover
soared, rising by almost 32%. The company's international expansion record is
enviable. Today its products are sold in countries spanning Western Europe, Eastern
Europe, North America, Latin America, Africa, the Middle East and Asia.
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L’Oréal:
Key skin care brands
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| Mass
market |
L'Oréal
Paris |
Plénitude |
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Laboratoires
Garnier |
Synergie |
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Jade |
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Ambre
Solaire |
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LaScad |
Mixa |
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Vittel |
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| Pharmacy |
Vichy |
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La
Roche Posay |
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| Selective
brands |
Lancôme |
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Biotherm |
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Helena
Rubinstein |
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Within
the personal care market, L'Oréal is present in the mass market, the selective
channel, pharmacies and salons. Brands in the mass market are housed under a number
of divisions, including L'Oréal Paris, Laboratoires Garnier, LaScad and Gemey.
In the selective market top brands include Lancôme, Biotherm and Helena Rubinstein.
It also covers a number of famous names in fragrance, such as Cacharel, Giorgio
Armani, Ralph Lauren, Guy Laroche and Paloma Picasso. L'Oréal's main brand in
pharmacies is Vichy but it is also represented by other brands including La Roche
Posay.
According to European Cosmetic Markets in 1998, L'Oréal claimed approximately
17% of total cosmetics and toiletries sales across France, Germany, Italy, Spain
and the UK, placing it top of the rankings in this region, well ahead of number
two, Unilever. In the facial skin care category, L'Oréal took 15% of sales across
these five countries, in body care it claimed around 10% and in sun care it accounted
for almost 25% (Source: European Cosmetic Markets, August 1999, European Overview).
L'Oréal's expertise in skin care is reflected across its divisions and its scientific
advances span brands in different distribution channels.
In the company's mass market L'Oréal Paris division, its main facial skin care
brand is Plénitude, which was first launched in 1983. According to European Cosmetic
Markets in 1999, Plénitude was ranked second in mass market skin care in France
and third in Spain. In Germany it is ranked third in mass market moisturisers
but only sixth among cleansers and in the UK it is ranked second in terms of moisturiser
sales and third in facial toners. In Italy, it is ranked joint fourth in both
cleansers and moisturisers.
Recent innovations in the Plénitude portfolio included the 1999 launch of anti-ageing
treatment Line Eraser, an intensive action night treatment which is said to achieve
a spectacular reduction in wrinkles. Alongside its key active ingredient of pure,
concentrated retinol, the formula also includes epidermal lipids similar to those
present naturally. They act to reinforce the cutaneous barrier during the treatment
to render the skin better equipped to take advantage of the benefits of the retinol.
In 1997, the Plénitude line was extended with Futur·e,
which fights the signs of ageing by delivering pure vitamin E to the skin. The
product makes use of L'Oréal's Nanosome technology, which is used to transport
lipophilic active ingredients. Futur·e
also includes L'Oréal's UV filter Mexoryl SX. Earlier this year, L'Oréal extended
its Plénitude line with Hydrafresh, known as Hydratonique in France. Described
as a "cocktail of energy", the formula incorporates vitamin C for vitality, vitamin
E to protect the skin, Vitamin B5 to soothe and prevent dehydration and calcium
and magnesium to stimulate cutaneous metabolism. It is available in two types
- one for normal or combination skin and one for dry or sensitive skin.
Plénitude has also taken advantage of the latest growth spurt in the cleanser
category. Like many other mass cosmetic brands it has launched cleansing tissues
and deep cleansing strips.
Under its Laboratoires Garnier division, L'Oréal's main facial skin care brand
is Synergie. In the mass market moisturiser category Synergie is estimated by
European Cosmetic Markets to be ranked third in Italy and the UK. In cleansers
it is second in the UK and third in Italy. In Spain it is ranked seventh across
all mass market facial skin care categories.
Recent innovations in the Synergie line have largely taken the form of sub-ranges.
In 1998, Laboratoires Garnier followed the launch of Synergie C Daily Moisturising
Cream and Fluid with the addition of an entire cleansing range incorporating vitamin
C to create the sub-range Synergie C. Cleansing products in the line include foam
wash, cleansing milk and toner. In 1999, the company followed this with the introduction
of another sub-line, Synergie Pure, a line of five products for effective, yet
gentle daily care for oily skin. The range comprises a facial wash, a toner and
Sebum Control Moisturiser as well as two "emergency treatments": Synergie Pure
Express Patch, a small adhesive transparent disc designed to be applied directly
onto spots for overnight treatment and T-Zone Purifying Strip which is said to
offer a quick and gentle action for the removal of blackheads and impurities.
In spring 2000, Laboratoires Garnier went on to add Synergie Fresh, a range of
four products: a foaming gel, a toner, a moisturiser and eye patches designed
to eliminate bags under the eyes. The cleanser, toner and moisturiser are each
available in a green shade for normal skin or a peach shade for dry skin and formulas
are rich in vitamins and trace elements. The line is aimed at the 20-35 age group.
IIn Germany, Laboratoires Garnier also markets the Jade brand and innovations
which emerge through the Synergie brand elsewhere are often unveiled under Jade
in that market. For example, in Germany, Laboratoires Garnier markets a facial
skin care line similar to Synergie C under the name Jade C. Jade is also present
in the area of facial skin care for oily skin with the Jade Hautklar line.
Jade is ranked fifth amongst mass market cleansers in Germany and seventh among
moisturisers.
Laboratoires Garnier's strength in the sun care market cannot be overlooked. According
to European Cosmetic Markets, its Ambre Solaire brand, launched as early as 1936,
is the mass market leader in sun protection in France; in the UK, supremacy in
the market is a hard fought battle between Ambre Solaire and Boots The Chemists'
own brand Soltan. It is third in Germany and Italy and fourth in Spain. Products
span sun protection, aftersun and self-tanners. Ambre Solaire sun protection incorporates
L'Oréal's two patented UV filters Mexoryl SX and Mexoryl XL.
In the French mass market, L'Oréal is also represented by its LaScad division
which includes Mixa body and hand care products and Vittel facial skin care. The
Mixa brand was first launched in 1969. Mixa Intensif Peaux Seches dry skin treatments
are ranked top in the hand care market in terms of volume sales, third in general
purpose creams and second among body moisturisers. Mixa also includes baby care
products.
In the pharmacy channel, L'Oréal's top brand is Vichy which spans facial skin
care, body care and sun care. Vichy products are designed to be effective, safe
to use and accessible in terms of price. L'Oréal states that the Vichy brand leads
the European dermo-cosmetic market. Recent launches include Nutrilogie Deep Treatment
for Dry and Severely Dry Skin, an oil-in-water emulsion formula which incorporates
a new molecule, the patented Sphingo-Lipide, which stimulates natural lipid production
deep within the epidermis. In 1999, Vichy unveiled Reti·C,
said to be the first product to combine retinol and vitamin C to smooth away wrinkles,
creating youthful radiance and a glowing complexion. Vichy does not overlook the
male consumer - its Basic Homme range is a line of caring products for men. It
also boasts the highly innovative Capital Soleil sun care brand which was the
first L'Oréal sun protection line to incorporate its Mexoryl SX UV filter technology.
This is now used in all L'Oréal sun protection products.
In the selective market, L'Oréal's key skin care brands are Lancôme, Biotherm
and Helena Rubinstein. These are all strong in the areas of facial skin care,
body care and sun care. Although selective market brand share figures are difficult
to come by, industry sources suggest that Lancôme is the most significant of the
three in Europe, in terms of value sales. Biotherm is particularly notable for
its skin care offering designed specifically for men. Its men's line Biotherm
Homme comprises a total of over 20 products including facial skin care and shaving
products, deodorants and bathroom products.
Many recent launches from Lancôme, Biotherm and Helena Rubinstein have had one
key ingredient in common - retinol. In late 1999, Lancôme launched Re-Surface
Intense Wrinkle Corrector, said to be the first anti-wrinkle corrector enriched
with concentrated retinol Nanocapsules. By transporting the retinol via Nanocapsules
it is said to ensure that it is targeted correctly, released effectively and protected.
Biotherm's recent retinol addition is Retinol Repulp, heralded as the first skin
care product to unite the latest breakthroughs in cosmetic anti-wrinkle research
with the power of thermal spring water. This triple emulsion cream is made with
pure retinol and extracts of thermal plankton. It arrived on counter early in
2000. Rubinstein's most recent retinol development was Power A Pure Retinol Repair
Therapy which launched in October 1998. It was developed following six years of
research during which the company designed a patented technological method that
associates vitamin A with the enzyme lipase. The two ingredients are kept separately
in the container but when they join on application the vitamin A palmitate is
bio-converted through the action of lipase into pure, active 100% fresh retinol.
Rubinstein has since added a treatment for the eye area, Power A For Eyes Pure
Retinol Repair System.
Other innovations from these three selective houses include Hydra Zen from Lancôme,
a skin destressing moisturising treatment available as a cream or fluid. Helena
Rubinstein also introduced Force C Premium Super Energising Cream, an updated
version of its original Force C. Cream. The new formula contains a combination
of three forms of vitamin C - fresh vitamin C, vitamin C magnesium phosphate and
glucosylated vitamin C. Said to fortify and hydrate the skin, the treatment also
boasts anti-fatigue benefits to leave skin softer, smoother and more resilient
to the first signs of ageing.
As it approaches its centenary, L'Oréal's future looks bright. With the force
of a strong research department behind it, the innovations are going to keep coming,
particularly in a continuously evolving and competitive area like skin care. What's
more, with the company's ability to apply these innovations across its many brands
its hold on the market is likely to continue to grow.
Author
Julie Forster
Julie Forster is Editor of the monthly trade magazine European Cosmetic Markets,
published by UK-based Wilmington Publishing. European Cosmetic Markets focuses
on retail trends in the major European markets, providing in-depth data on the
main cosmetics and toiletries categories, alongside company profiles, regional
reports and all the latest news and new products. Contact: Wilmington Publishing;
Tel: +44 20 7549 8626; Fax: +44 20 7549 8622; email: ecm@wilmington.co.uk. Website:
www.cosmeticsbusiness.com
