L'Oreal (or “the company”) is one of the largest cosmetic companies in the world. It produces and markets a range of make-up, perfume, hair and skin care products in over 130 countries. Since its inception about 100 years ago, the company has developed a strong brand portfolio of 27 international brands (these brands' annual sales are superior to 50 million euros). Its brand line-up includes L'Oreal, Redken, Matrix, Lancome, The Body Shop, Garnier, Maybelline, Kerastase and Inneov among others, all of which are recognized globally. The company had 613 patents filed in 2011 and have 5 development centres around the globe which are based in Shanghai, Rio de Janeiro, Dubai, New York and Paris. L'Oreal brand was ranked 40th in the Best 100 Global Brands 2011 list by an industry source. It is headquartered in Clichy, France and employs 68,900 people in 66 countries. The company recorded revenues of E20, 343.1 million in the financial year ended December 2011 (FY2011) an increase of 4.3% over FY2010. The operating profit of L'Oreal was E 3, 292.6 million in FY2011, an increase of 7.7% over FY2010. The net profit was E2, 438.4 million in FY2011, an increase of 8.9% over FY2010. BEAUTY FOR ALL
For more than a century, L’Oréal has devoted itself solely to one business: beauty. It is a business rich in meaning, as it enables all individuals to express their personalities, gain self-confidence and open up to others. Beauty is a language.
L’Oréal has set itself the mission of offering all women and men worldwide the best of cosmetics innovation in terms of quality, efficacy and safety. It pursues this goal by meeting the infinite diversity of beauty needs and desires all over the world. Beauty is universal.
Since its creation by a researcher, the group has been pushing back the frontiers of knowledge. Its unique Research arm enables it to continually explore new territories and invent the products of the future, while drawing inspiration from beauty rituals the world over. Beauty is a science.
Providing access to products that enhance well-being, mobilising its innovative strength to preserve the beauty of the planet and supporting local communities. These are exacting challenges, which are a source of inspiration and creativity for L’Oréal. Beauty is a commitment.
By drawing on the diversity of its teams, and the richness and the complementarity of its brand portfolio, L’Oréal has made the universalisation of beauty its project for the years to come. L’Oréal, offering beauty for all.
FOCUS ON INNOVATION AND CHANGE
Focus on innovation and differentiation through robust R&D efforts L'Oreal's drive to innovate is based on a strong R&D effort. R&D spending increased by 8.4% in FY2011 and represented 3.5% of sales. The company dedicated E721 million to cosmetic and dermatological research in FY2011.The company's R&D group comprises departments specialized in the technologies critical to the company's various product categories. The company has a cross-functional product development process intended to optimize the company's ability to bring to market its new product offerings and to ensure that the company continuously has new products lined-up in key categories under its various brands. Furthermore, L'Oreal has increased its focus on developing differentiated and customized products across various countries and regions. In order to understand local characteristics, the company has research centres both in mature countries and emerging markets. It has 19 research centres and 16 evaluation centres across the world. These R&D centres formulate products that are most effective and the best suited to the needs of the consumers in these countries and regions. For instance, in China, at the Pudong research centre, three years of study of Chinese hair, together with analysis and interpretation of a local custom using dry wash shampoo led to the creation of a range of shampoos and hair care products ideally...
Please join StudyMode to read the full document