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Transcript of L’oreal India

  • JANUARY 2016www.endeavourmagazine.com


    LOreal IndiaMore Than Skin Deep

  • LOral is a household name around the world and is stretching its impressive reach further afield every year. With dramatic growth recorded in South Asia, Endeavour Magazine decided to take a look at the impact that the company is having in India.First making a splash in India in 1994, LOral proved its international status and took its first strides into a new locale. Though it enjoyed a steady growth pattern, it wasnt until 2003 that things really began to take off. In January 2013, LOral reported enormous growth patterns within the Indian region that demonstrated an average growth rate in excess of 30% over a 10-year period. Now that is no small smudge on the face of the cosmetics industry!





    91 22 67003000

  • With impressive growth figures and stockists en masse

    in place, it can hardly come as a surprise that LOral is

    the third most successful cosmetics brand within the

    Indian market, accounting for an 8% share in built-up urban areas.

    Translating to approximately 198 million of sales in 2011, an 8%

    share really is nothing to sniff at, especially given how competitive

    and saturated the beauty industry is.

    Despite showing impressive rates of growth at every

    opportunity, LOral is keen to optimise their approach to the Indian

    market in a more focused, yet diverse way. The marketing team

    for LOral revealed that this included launching, several brands

    covering various product categories, including: mass consumer

    brands Garnier, LOral Paris and Maybelline New York; luxury

    brands Lancme, Yves Saint Laurent, Kiehls, Ralph Lauren, Giorgio

    Armani and Diesel; professional brands like LOral Professionnel,

    Matrix, Krastase and Kraskin Esthetics for salons and pharmacy

    brands Vichy and La Roche-Posay.

    Apparently, nobody told LOral that you cant please all of the

    people, all of the time and they have set out to do exactly that and

    are managing it with undeniable success, but what is the secret to

    their speedy rise to popularity in India?

    Its thought that the success of the group can be attributed by

    its inherent ability to observe the demands of individual markets,

    where beauty standards and traditions are set by longstanding

    traditions, before adapting to meet the specific needs of the

    people adhering to those traditions. A clever technique indeed and

    it helps LOral to really connect with its consumers. For example,


    Having had a presence in India for over 20 years now, LOral is still considered to be something of a spring chicken when it comes to the lucrative South Asian cosmetics market, but despite this perception, it has proved itself to be far more mature than its years. By demonstrating and annual average of 30.2% growth, it has become recognised as the fastest growing beauty company, being marketed through a staggering 750,000 points of sale throughout the country.

  • in India, there is a huge variation in the standards of living, meaning

    that while some women might be able to afford luxury brands for

    everyday use, others will be able to only buy budget versions. With

    an understanding of this in place, LOral in India is able to offer

    Garnier Fructis shampoo, a hugely popular brand worldwide, in

    sachets that cost just 1.5 rupees, the equivalent of 0.02.

    Its not greed that fuels this considerate approach to beauty

    product supply, however, as though market share is obviously a

    large consideration for any corporate group, so too must the well

    being of its customers. LOral takes this duty of care enormously

    seriously, as you would hope any major player in the beauty industry

    would. The question is: how can they sell top quality products for

    such a low price?

    By producing items locally and using raw materials that are

    on hand and easy to come by, lower prices can be enjoyed by

    consumers, while LOral benefits from a hoard of new and loyal

    buyers. With such huge potential identified in India, LOral made

    a brave decision in 2011, when it created a new research and

    innovation centre in Mumbai. Fully equipped with evaluation and

    formulation laboratories, the centre proved to be a turning point

    for really breaking the Indian market wide open and the group

    hasnt looked back since.

    Its not all business with LOral though, as they have a staunch

    Corporate Social Responsibility programme in place, as well as a

    desire to embrace sustainable materials and invest in the future

    of the beauty trade. With this in mind, the group has invested

    significantly in a number of initiatives.

    Following the centennial celebration of the company, LOral

    was proud to launch the Beautiful Beginnings programme within

    India, that allowed women who had been unable to continue wit

    their education to receive four months of hairdressing and beauty

    training, thus setting them up for a career. An impressive 75% of

    attendees are now in work, either at salons or having opened their


    Launched in 2008, the Care initiative from LOral looks to

    support four different elements; education, environment, health

    & hygiene and safety. Fully finding the completion of two well-

    stocked classrooms, the initiative gained LOral a Citizen of the

    World Award in 2010.

    Last, but not least, LOral is seeking to reduce CO2 emissions,

    as well as transportable waste and water wastage within India and

    their Pune facility is one of the finest in terms of sustainability and

    environmental responsibility. Add to this some 970 square metres

    of solar panels and you really start to get a feel for what a difference

    the company is trying to make.

    While it would be enough for some companies to be enjoying

    a fortuitous market share in a competitive industry, LOral is

    demonstrating a long-term desire to be a part of the Indian

    commerce structure. By offering affordable products, a wide range

    of brands and numerous programmes that all seek to benefit the

    consumer base as well as local communities and the country as a

    whole, it seems that beauty really isnt just skin deep. It is found in

    the heart and soul of a company as well.

  • www.endeavourmagazine.com

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