2. L’Oréal
France
www.loreal.com
Beauty sales: $19.8 billion

Key Personnel:

Sir Lindsay Owen-Jones, chairman; Jean-Paul Agon, chief executive officer; Beatrice Dautresme, executive vice president, corporate communications, external affairs and prospective; Jean-Francois Grollier, executive vice president, research and development; Jean-Jacques Lebel, president, professional products; Marcel Lafforgue, executive vice president, production and technology; Christian Mulliez, executive vice president, administration and finance; Geoff Skingsley, executive vice president, human resources; Marc Menesguen, president, luxury products; Patrick Rabain, president, consumer products; Laurent Attal, president and chief executive officer, L’Oréal USA.

Sure Ralph Rocks, but will the rollout be a hit this holiday?

Products/Brands:

Hair care, skin care, sun care, color cosmetics, toiletries and fragrances marketed under such brand names as Artec, Biotherm, Cacharel, Carson, Helena Rubinstein, Lancôme, Lanvin, La Roche-Posay, L’Oréal, L’Oréal Paris, L’Oréal Professionnel, L’Oréal Perfection, L’Oréal Kids, Kerastase, Redken, Inne, Laboratoires Garnier, Giorgio Armani, Harley Davidson, Matrix, Maybelline, Jade, Gemey Paris, Jean-Louis David, Dop, Cadonet, Jacques Dessange, Ralph Lauren, Redken, Soft Sheen Carson and Vichy.

New Products:

Armani Silk Reds Collection, Maestro High Color Eye Collection, Shu Uemura Muse palettes by Gina Brooke, Shu Uemura Phyto-Black Lift (an anti-aging skin care product), Polo Explorer and Ralph Rocks men’s fragrances.

Comments:

Last year, L’Oréal, the world’s largest cosmetics company, separated the functions of chairman and chief operating officer, putting in place a younger management team with a fresh approach. While sales slowed slightly in North America, the cosmetics giant reported a strong year of economic growth as a whole. Key was regeneration of L’Oréal’s markets in Western Europe and continued gains in the rest of the world, due to emphasis on globalizing its brands. Sales continued to grow with published figures reaching 8.7%, the highest since 2000. According to Jean-Paul Agon, CEO, this added an extra $1.8 billion (at current exchange rates), increasing market share from 15% to15.6%. All divisions strengthened their positions.

The Pureology acquisition strengthened L’Oréal’s already impressive hair care lineup

In the U.S., L’Oréal Paris rose to third position in makeup and Garnier Fructis took second place—just four years after its launch. Garnier sales topped the 2 billion euro mark. Corporate acquisitions played an important role with the major additions of The Body Shop and
PureOlogy Research LLC, a luxury American brand sold through hairdressers in the professional hair care market. Noted for its range of highly concentrated sulfate free shampoos with Anti Fade Complex, PureOlogy’s sales in the 12 months preceding acquisition were $57 million. The company is one of the fastest growing hair care brands in the U.S.

With L’Oréal’s emphasis on research, its development of Pro-Xylane, an anti-aging compound, is bound to continue to snare the seniors’ market it’s so effectively targeting. Other company forecasts: a licensing agreement with Diesel will fuel a power in the fragrance business, and Giorgio Armani is poised for major expansion in the luxury market. For fall, Giorgio Armani’s new Leather Collection features a new range of shades for eyes, face and lips, housed in two limited-edition snakeskin print-embossed compacts.