Cosmetics and Toileteries in France

As the perfume, cosmetic and toiletry preparations industry entered the 1990s, it faced many challenges including regulatory changes, product safety concerns, increasing environmentalism, natural ingredients, pressure from the growing animal right

This report is based on the ‘L’Oreal: Expansion in China’ case study. L’Oreal is a successful French cosmetic company that involved into many different international markets. This report will discuss how L’Oreal gets into the Chinese cosmetic Market and the strategic to develop their brand in the Chinese market. L’Oreal acquires two famous Chinese cosmetic brands which are Yue-Sai and Mininurse. It is in order to entrance the market quickly and sales the most suitable products. The aim of this report is to define the challenge L’Oreal has been faced. Then it describes how L’Oreal managing their strategic in Chinese market. In addition, it gives an accommodation which could help L’Oreal overcoming these challenges.

Many great fashion designers have entered the market of fragrance (Chanel, Lanvin, Givenchy, Yves Saint‐Laurent, Balenciaga …). After that, the speakers of the cosmetic market launched their own perfumes (Yves Saint Laurent, Estee Lauder) and finally, the family brands made their entry on the market (L’Oreal, Procter & Gamble, Unilever…). These

• Consumer Behavior: In different countries consumers will respond differently to advertising, product positioning and the kind of distribution. Also the willingness to spend a certain amount of the income for cosmetics differs among countries. Another important factor is the consumer’s willingness to switch the brand.

The above data shows product growth categories for skincare. It is important to note that many of Redwin’s competitors do have products in Men’s skin care and in self tanning which are 2 of the fastest growing skin care categories in Australia.

There is a famous saying that ‘cosmetics are not selling product but beauty.’ Therefore, it is important to keep planning and developing product to meet the needs of customers who pursue beauty. In line

As the consumer attitude gradually changes, people are more in favor of the natural and safe products in cosmetic market. Australia consumers are not exception. They respected green-added cosmetics, namely, they are increasingly in pursuit of natural, pollution-free cosmetics with no chemicals added. Consequently, the products of chemical-free will gain competitive advantages in Australian cosmetic market to meet the consumer’s psychological needs for green, organic skin care products.

Young girls are more concerned about acnes and blackheads while mature women are looking for anti-aging and anti-wrinkle products. Genders do affect the choice of skin care products. In the past, skin care products only belong to the girls’ world. Nevertheless, in recent years, men are increasingly becoming more and more concerned about skin care. With a view to this latest trend, various brands have started developing men’s line. Income level directly affects the purchasing power of customers. Skin care products take up a wide range of price levels from far less than a hundred dollars to more than a thousand. Young girls who do not have any income cannot afford the expensive skin care products while mature women with higher purchasing power focus more on quality and effectiveness. Occupations also determine the need for skin care products. Models and artists generally have a higher consciousness on skin care than people with less exposure to the public.

We aim to provide Australian and foreign consumers with the highest quality skincare on the market while promoting sustainable behavior and reducing our ecological footprint.

To make things worse, the perfume market is also suffering from slower growth than some other segments of the beauty industry. L’Oreal’s fragrance division was its slowest-growing cosmetics’ business segment in 2005. Comparable perfume sales at the group rose 1.3% to $1.47 billion ($1.93 billion) in 2005, compared to growth of 8.9% for skincare and 5.6% for hair care. In France, the world’s largest perfume market, sales were flat in 2005. At U.S. department stores, sales rose 3% to $2.94 billion, according to market research firm NPD. The Luxury Brand Market Analysis is the only study of wealthy consumer awareness and buying behavior of luxury women’s fragrances. Wealthy consumers mentioned Chanel (in the aggregate) as the most often recalled brand (unaided) when asked which luxury fragrance brands come to mind. It was also the highest ranking brand for market share, purchase consideration and most recent purchase. “With the hundreds of choices wealthy consumers have for luxury fragrances, it’s a tribute to Chanel that their brand remains so dominant within this coveted segment,“ said Milton Pedraza, CEO of the Luxury Institute. “ While

e. The Chinese Association of Fragrance, Flavor and Cosmetic Industry put 2008 total sales of cosmetics at $19 billion, with a steady average growth rate of 15% during the last five years which has and will sustain despite the global economic downturn.

Further, with fierce competition, P&G¡¦s primary outlet in France would be to reach the French consumers through Perfumeries; however, finding shelf space in these retail stores is nearly impossible. Tapping the European market could prove difficult and costly.

Gas prices are high and rising leaving most Americans with less disposable income for purchasing cosmetics.

With a population of 86 million – over half aged under 30 – Vietnam in particular is an attractive market for cosmetic companies. In fact, according to business advice service Vietnam Net, approximately 90% of cosmetics sold in the country are imported. The country’s largest foreign players are South Korea (30%), the EU (23%), Japan (17%), Thailand (13%) and the US (10%), according to 2006 estimates from the US Commercial Service. Ngo Minh Phuong from the US Commercial Service in Vietnam points out: “Although the share by each player may be slightly different [than the 2006 figures given] the ranking is the same and [South] Korea is still clearly the predominant player.”

Many cosmetic brands are popping up recently, perhaps, due to the increasing consumers of products that beautify and enhance the physical appearance of a person. Even though the market is already full of the said cosmetic brands, the company L’Oreal Groups could still be considered as the leading supplier of cosmetics and hair-color. This study is a brief overview of the marketing concepts and strategy of the said company. The company profile will be presented to be able to give a clear view of the market to which the company belongs to. An internal and external (SWOT) analysis of the company will also be provided in this paper. Another area will be specifically devoted to