L'Oreal in India

Topics: Cosmetics, Human skin color, Marketing Pages: 14 (4080 words) Published: August 20, 2011
Table of Content
Table of Content3
Executive Summary4
Company Introduction5
Indian Cosmetic Market5
L’Oreal in India6
Factors influencing Consumer Decisions8
Personal Factors9
Changing Demographics9
Demand for Luxury Cosmetic Brands:9
Cosmetics for Men:10
Colour Selection:10
Fair Skin Syndrome :10
Beliefs and Attitudes11
Harmful chemicals in cosmetics:11
Ayurvedic/Herbal Products are good for the skin :11
Social Factors12
Boom in Salon Care :12
Bollywood Influence on Cosmetic Industry :13
Packaging :13
Hair Care and styling:14

Executive Summary

Cosmetic industry is one of the most profitable businesses globally. Over the past 15 years the cosmetic market has grown on average by 4.5% a year. Resulting from the natural increase in the population and the raising levels of income in a large number of countries there is a huge potential for further growth in the cosmetic markets globally. However, the sales growth in mature markets in the western world is slowing and the focus is now shifting to the east. In the past 10 years due to improvements in the overall Human Development Index and per capita income most emerging markets particularly the BRIMC (Brazil, Russia, India, Mexico, China) there is more awareness of personal hygiene and more consciousness about personal grooming. Cosmetic producers and distributors globally have identified this potential and are expanding their businesses in to these new markets. With the increase in per capita income, urbanization , awareness about personal grooming and changing lifestyles India’s cosmetic market has huge development potential. With the demand for cosmetics increasing Indian markets are opening up to more and more multinational cosmetic companies. Since the liberalization many international brands like Avon, Burberrys, Calvin Klein, Cartier, Christian Dior, Estee Lauder, Elizabeth Arden, Lancome, Chambor, Coty, L'Oreal, Oriflame, Revlon, L'Oreal, Yardley, Wella, Schwarzkopf, Escada, Nina Ricci, Rochas, Yves St. Laurent and Japanese cosmetics company, Shiseido have entered the Indian market. (State of Israel Ministry of Industry Trade & Labour) L’Oreal founded in France is at present the world’s largest cosmetic producer by revenue. L’Oreal’s global network is very well established in emerging markets and is at present contributing to 33% of the sales. L’Oreal entered the India in 1990 and at present is one of the key foreign players in the Indian cosmetic Market. It is a challenge for any company to be successful in international markets as the factors affecting consumers buying decisions vary from one market to the other. The purpose of this assignment is to conduct a survey to explore the factors influencing Indian consumers purchasing decision of cosmetics and how L’Oreal has addressed these factors.

Company Introduction

The L’Oreal group was created in 1909 by a French chemist Eugene Schueller. By 1950 the company had acquired 100 products was present in Holland, Austria and Italy. Soon they expanded their business to US, South America, Russia and Far East. At present the L’Oreal group is the worlds largest cosmetic and beauty company represented in 130 different countries and owns a wide brand portfolio of 500 different brands providing diverse products ranging from hair colour, permanents, styling aids, body and skin care, cleansers and fragrances. L’Oreal also well known for its research and development work in the dermatological industry. 3% of its sales revenue is spent on research on cosmetology and dermatological research. It is also active in dermatological and pharmaceutical field and at present is the largest nanotechnology patent holder in the US. The distribution channels are diverse from hair salons to super markets and hypermarkets, health and beauty outlets and direct mail.

Indian Cosmetic Market


References: Bhattacharya, P. (2006) India’s Cosmetic Market Ready for Big Leap,. Global Cosmetic Industry. Issue 1,
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India 's cosmetics market set to grow, (Jan 6, 2008), The Times of India
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Sankhe, S., at all (2010), India’s urban awakening: Building Inclusive Cities, sustaining economic growth, Mckinsey & Company
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O’Connor, A.(2007), Sharp-eyed L’Oreal gets head start in India, The Sunday Times,
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