The use of cosmetics dates back to 200AD when it was only used by men to exaggerate their features on the battlefield. It was the era of the 1940s when modern cosmetics were introduced and continued till the late 20th century when more refined natural oils and synthetic emollients were used to manufacture personal care products. The cosmetic industry is a part of a customer-oriented business. Their expertise is in manufacturing products that are related to personal hygiene and beauty. Over the years, many revolutionary changes have been seen in this industry which introduced a lot of popular products for cosmetics, hair care, soaps, skincare, shampoos, oral care, perfumes, and many more. Even today, these companies try to meet the daily requirement of people to thrive to become the best in the market. While many companies have established themselves in this industry, there is one that stands out among all.
The world’s largest beauty brand, L’Oréal.The popular French company began its journey in 1909. They excel in products related to hair color, skincare, sun protection, make-up, perfume, and hair care. With its headquarters in France, the company currently operates in more than 190 countries around the globe. The company’s concern to reach out to each customer in different parts of the world, keeping in mind their income ranges and cultural platforms, is what made them successful. Their development of human reconstructed skin that could be used to evaluate how cosmetic ingredients and products behave on human skin to prevent the practice of animal testing is also what makes them customer's most preferred brand.
The company has Nicholas Hieronimus as its newly appointed CEO. He has been a part of L’oreal for 33 years and has been Deputy CEO in charge of different divisions since 2017.
To fulfill individual and diverse beauty desires, L'Oréal strives in creating products that suit their lifestyle, while at the same time evolving according to their needs. If we witness the previous five years, there has been a drastic change in customer's expectations which stressed creating revolutionary changes in the beauty industry. In an interview in 2020, L'Oréal's global vice president Guive Baloch spoke, “Women have had the same beauty concerns for 30 to 40 years, but technology has created a more demanding consumer.
With this, we aim to become the "number one beauty tech company" in the world." With the power of technology, the company is reshaping its customer relationships through beauty tech innovations. To create a fully integrated and digital experience, they are working on providing online consultations, speeding up in bringing new products to market, and enabling purchase through voice technology. To increase the pace of innovation, they have developed a specific program known as the Tech Accelerator. This program has an application called the Trendspotter.
The application relies on artificial intelligence to identify innovative beauty trends on social media at an early stage. Their search engine scrutinizes recommendations from trendsetters with the most followers on the web, be it beauty influencers, celebrities, beauty professionals, or scientific experts. Trends that are analyzed cover everything from ingredients to texture, packaging, and lifestyle in makeup, skincare, and haircare.
Particularly in India, L’Oréal India was formed in 1994 to provide consumers with sophisticated, safe, high quality, and effective beauty products.
They have a total of 15 brands in India and use the following distribution channel to reach their consumers.
1. Mass market - it is a marketing strategy in which a firm decides to ignore market segment differences and appeal to the whole market with one offer or one strategy, which supports the idea of broadcasting a message that will reach the largest number of people possible. (L’Oréal Paris, Garnier, Maybelline New-York and NYX Professional Make up)
2. Selective distribution – it is an approach where selective and few outlets are chosen through which the product is made available to the customers. (Kiehl's, Yves Saint Laurent, Giorgio Armani, Ralph Lauren, Diesel, and Guy Laroche).
3. Hair and beauty salons - (L’Oréal Professionnel, Matrix, Kérastase, Cheryl's Cosmeceuticals, and Decleor)
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