L'Oreal & the Body Shop, Industry Analysis

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L'Oreal is one of the largest cosmetics companies in the world. It produces and markets a range of make-up, perfume, hair and skin care products. The company's products are sold under well-known brands such as L'Oreal Paris, Garnier, Maybelline, SoftSheen Carson, CCB Paris, L'Oreal Professionel, Kerastase, and Redken. It markets 19 global brands through three divisions: cosmetics (comprising of skincare, haircare, make-up, hair colorants, perfumes and other products), The Body Shop (it has become a part of L'Oreal after its acquisition in March 2006) and dermatology (comprising of drugs for acne treatment and others). The cosmetics division of L'Oreal operates through four segments: professional products, consumer products, luxury products and active cosmetics. L'Oreal has a diversified geographic presence. The company currently has operations in over 130 countries across five continents. The different brands associated to the four divisions of l'Oréal are the following: -Professional products

-Consumer products
-Luxury products
-Active cosmetics

On 17 March 2006, L'Oréal made a £652 million agreed takeover of ethical cosmetics company The Body Shop. There was a huge controversy surrounding claims that L'Oreal continues to test on animals, which contradicts The Body Shop's core value of Against Animal Testing. L'Oreal states the company has not tested on animals since 1989. This acquisition has been an important step in the L'Oréal Corporate strategy since The Body Shop has emphasized its support for a wide range of issues around the globe. Its slogans included: Against Animal Testing, Support Community Trade, Activate Self Esteem, Defend Human Rights, and Protect Our Planet. The Body Shop International plc, known as The Body Shop, has over 2,000 stores in more than 50 countries. Following O Boticario, brazilian company, The Body Shop is the second largest cosmetic franchise in the world. The company is...
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