L`Oreal

In Russia, L'Oreal occupies a leading position in the market for hair dyeing, face care, and decorative cosmetics. The company does not stop there and continues its successful development thanks to the work of all its divisions.

Performance indicators

2020: Internet sales up 62%, net profit down 5.9%, to €4.099 billion

L'Oreal at the end of 2020 recorded a record increase in Internet sales, the figure increased by 62%, reaching 26.6% of the total revenue of the French cosmetics manufacturer.

In 2020, L'Oreal's revenue reached €27.9 billion, up from €29.87 billion in 2019. The company's net profit shrank 5.9%, reaching €4.099 billion, up from €4.356 billion in 2019.

The company's total sales in comparable terms sank 4.1% in 2020. Western Europe and North America posted declines of 10.3% (€7.514 billion) and 7.4% (€6.903 billion), respectively. In the Asia-Pacific region, on the contrary, an increase of 3.5% (9.799 billion euros) was recorded.

L'Oreal increased Internet sales by 62% in 2020, accounting for 26.6% of revenue

L'Oreal consolidated its lead in most European countries, especially in, and France Great Britain. Italy The company also increased market share in all of its strategic categories. There is a special effectiveness in promoting skin care products - L'Oréal Paris, La Roche-Posay and CeraVe, Libre from Yves Saint Laurent is a success in perfumery, and Kérastase and Garnier have strengthened their positions in hair care.

The only division of L'Oreal that showed positive dynamics for 2020 was active cosmetics. In this segment, sales for 12 months increased in comparable terms by 18.9%, to 3.011 billion euros. E-commerce remains the main driver of growth. CeraVe, La Roche-Posay and SkinCeuticals products, which meet consumer expectations and are recommended by medical professionals, have shown strong growth.

The category of consumer goods showed a decrease of 4.7%, to 11.7 billion euros. The segment of professional cosmetics sank by 6.4%, to 3.097 billion euros. The biggest drop was shown by luxury cosmetics, where sales decreased by 8.1%, to 10.2 billion euros.^[1]

History

2022: Revenue in Russia 60 billion rubles despite stopping direct sales

The French L'Oreal, which announced in March 2022 the termination of direct sales in the Russian Federation after the outbreak of the conflict in Ukraine, was able to help out more than 60 billion rubles in the Russian market by the end of 2022. - almost the same as a year earlier. The income was retained by the localized production of part of the products sold by independent retailers, the preservation of imports, as well as price increases. But it was not possible to maintain the full range of cosmetics and perfumes.

2021: €370,000 fine for industrial espionage

In mid-June 2021, a court in Paris fined L'Oreal 370 thousand euros for industrial espionage. Guinot, which develops a large network that includes several hundred beauty institutes, has suffered from the actions of one of the world's largest cosmetics manufacturers.

According to the court's verdict, L'Oreal appropriated technologies and methods developed by Guinot. The cosmetic concern sent people to the beauty institutes of a competitor company who pretended to be inspection inspectors, hiding that they were acting on the order of L'Oreal. These experts have carefully studied the methods that are a commercial secret of Guinot. Subsequently, L'Oreal used these developments in the production of its cosmetics.

L'Oreal received a fine of €370,000 for commercial espionage

Guinot asked to fine the cosmetics company 13.5 million euros in compensation for the appropriation of technologies and methods, but the total amount of recovery was significantly less. The court estimated Guinot's losses from L'Oreal's actions, including interest, at 300 thousand euros. Also, the cosmetic giant will pay 70 thousand euros in legal costs.

According to the court, L'Oreal's illegal actions negatively affected Guinot's plans for operations abroad, primarily in the United States. L'Oreal said it was "very surprised" by the court's decision.

Guinot is a beauty brand with more than 50 years of history. By June 2021, the company operates in 75 countries and has 17 thousand salons around the world. Guinot positions itself as the leader of professional cosmetology in France, providing premium services. L'Oreal has over 30 brands in its portfolio, including L'Oreal Paris, Maybelline New York, La Roche-Posay, etc. The trial between L'Oreal and Guinot has lasted since 2017.^[2]

2019: Instagram filters give powerful boost to cosmetics market

In mid-September 2019, L'Oreal CEO Jean-Paul Agon said that Instagram gave a powerful impetus to the cosmetics market - after all, young women have to devote much more energy and time to makeup in order to look as good as on selfies with Instagram filters. Read more here.

2018: Virtual Makeup Service Launch

In August 2018, it became known about the creation of a virtual makeup service from L'Oreal. According to Reuters news agency, it is being developed with Facebook by Canadian startup Modiface, which specializes in AR applications for the beauty industry and was bought by the world's largest cosmetics manufacturer in March 2018.

With the help of augmented reality technology, the service allows you to "test" a variety of cosmetic products before buying - from foundation to eyeshadow and lipstick. All lines of cosmetics from the NYX, Urban Decay, Lancome and Yves Saint Laurent brands will be added to the app.

In August 2018, it became known about the creation of a virtual makeup service from L'Oreal.

In an interview with the agency, L'Oreal digital director Lubomira Rochet said that the virtual makeup service will appear on Facebook's Instagram social network.^[3]

She also noted that the ability to virtually test cosmetics contributes to sales growth. According to Lubomira Rocher, on their sites where the company added such a feature, conversion from advertising has increased significantly.

Social networks have become one of the main drivers of online sales growth for L'Oreal. Although the purchases themselves take place outside of social media - on the websites of the company itself or its retail partners, social networks contribute to attracting an additional audience to online stores, the top manager added.

According to L'Oreal, its revenue from online sales in the first half of 2018 reached 9.5% of the company's total turnover. For comparison, three years earlier, the contribution of online commerce to the total revenue of L'Oreal was slightly less than 5%.

Earlier, in July 2018, Facebook began testing the use of augmented reality technology in advertising. One of the first new advertising opportunities for retailers was tested by the fashion brand Michael Kors and the chain of perfume and cosmetic stores Sephora.

2008-2009

From 2008 to 2009, many changes took place in different divisions. New brands have appeared in the Active Cosmetics Division: Innéov - a brand combining the advanced developments of L'Oreal in the field of dermatology and NESTLÉ in the field of food technology, SkinCeuticals - a professional dermatology line for skin care, the long-awaited launch of a new brand Sanoflore - skin care products based on pure natural components. The portfolio of the Luxury Products Division was expanded with Khiel's, YSL and Diesel brands, and the Professional Products Division included Redken and Kéraskin brands.

2004

In 2004, the Division of Luxury Products joined the Russian branch, promoting the brands Lancôme, Biotherm, Helena Rubinstein, Giorgio Armani, Ralph Lauren, Cacharel.

2003

In 2003, Matrix was launched. Also in 2003, the branch was renamed CJSC L'Oreal.

1990-1998

The history of L'Oreal in Russia began in 1990, when a joint Soviet-French joint stock company was created, which was engaged in the production of Elseve, Recital, Maroussia.

The Russian branch of L'Oreal under the name Rusbel CJSC was established in 1994. The activities of the branch began with the promotion of the L'Oreal Paris brand.

In 1994, the launch of Laboratoires Garnier products took place. In 1996, the Professional Products Division appeared in Russia, and the launch of decorative cosmetics L'Oreal Perfection took place. In 1997, Maybelline New-York decorative cosmetics and Fructis hair care scales were launched. 1998 - the beginning of the Active Cosmetics Division.

Notes