INTRODUCTION

L’Oreal was known as a hair-color formula before the facial cosmetics, developed by French
chemist Eugene Schueller in 1907. It was then known as “Aureole.” Schueller manufactured and
formulated his products which were sold to Parisian hairdressers. In 1909 Schueller registered
his company as “Societe Francaise de Teintures Inoffensives pour Cheveux, which came to be
known as L’Oreal. Scheuller began exporting his products, which was then only limited to the
hair-coloring segment. Only three chemists were employed in 1920. The research teams
increased to 100, in 1959 and by 1984 reached 1,000. Today, there are 2000 research teams and
are still expected to increase in the future. Through agents and consignments, Scheuller
distributed the company’s products in the USA, South America, Russia, and the Far East. The
L’Oreal Group is present worldwide with the help of its subsidiaries and agents. L’Oreal started
to expand its products from hair-color to other de[artments like cleansing and beauty products.
Today, the L’Oreal Group markets over 500 brands and more than 2,000 products in the various
sectors of the beauty business under various names. These include hair colors, permanents,
styling aids, body and skincare, cleansers, and fragrances. Indeed, the L’Oreal Group has reached
the landmark where all cosmetic brands desire to go.

INDIAN CONTEXT
L’oreal has always been in the right place at the right time. L’Oreal Paris, Lancome, and Garnier
tried and tested a large number of innovation and marketing strategies that appear to have paid
off. Today, L’Oreal reportedly has a 42.5 percent share of the market in India for hair
conditioner, around 19 percent for hair coloring products, and 6.7 percent and 4.4 percent for
the skincare and shampoo markets respectively. Meanwhile, it is the country’s leading player in
the salon products sector.
SALES AT A GLANCE (2018)
Like-for-like, which is based on constant exchange rates, the sales growth of the L'Oréal Group
was +7.1%.
Growth at constant exchange rates (CER) was +8.0%.

By the end of 2018, currency fluctuations had a negative impact of 4.5%.

Based on reported figures, the Group's sales, on 31 December 2018, amounted to 26.9 billion
euros, an increase of +3.5%.
BRAND HIERARCHY

L'OREAL

Consumer Proffessional Active

The Body
L'oreal LUXE Products Products Cosmetics
Shop
Division Division Division

PROFESSIONAL PRODUCTS
Professional Products Division - ended the year at +2.0% like-for-like and -2.6% reported.
These products meet the requirement of Hair salons and give customers a wide range of innovative
products.
Professional
Kerastase
Matrix

CONSUMER PRODUCTS
Consumer Products Division - 4th quarter growth of +2.78% like-for-like, and ended the year at
+2.49% like-for-like and -0.71% reported.
, These are the products present at competitive prices and possess high technology and are sold
through mass-market retailing channels.
L’oreal Paris
Maybelline
Garnier

LORÉAL LUXURY PRODUCTS

These are the premium products and offer customers products and premium services.
Lancome
Ralph Lauren
Biotherm
Giorgio Armani
Diesel
ACTIVE COSMETICS
Active Cosmetics Division -ended the year at +11.9% like-for-like and +9.2% reported.
These are the products sold in pharmacies and specialist retailers backed by advice from
pharmacists and dermatologists
Vichy
La roche posay

Sales figure source : L'oréal Finance : News Releases. (n.d.). Retrieved from https://www.loreal-
finance.com/eng/news/2018-annual-results-1317.htm

DISTRIBUTION CHANNEL DESIGN

Factory

Distribution
Centres (Depots)
Salons

Distributors
Hypermarkets

Mass retailing Mass Retailing Supermarkets

Channels Channels

Drugstores
Customers
Traditional
Stores

 L’oreal has 42 factories worldwide. In India, it is located in Pune

 One or more distributors are present in cities depending upon the population and size of
the city.
 Salons: L’oreal has acquired a company called “Cheryl’s Cosmeceuticals, which has 10000
stores in India.
 It has its stores viz., Professional, Matrix and Kerastase.
 They do not have their transportation, so they use public and private transportation to go
to distributors and manufacturing units.
COMPETITORS
Johnosn &
HUL P&G
Johnson

Godrej