Essay About Cosmetics Market And Oreal Products

Loreal
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Founded in 1909 , L’oreal had become the world leader in the cosmetics market by 2003. The company believed in the strategy of innovation and diversification. Though the cosmetic market on the whole is in declined stage L’oreal products has been becoming popular for their uniqueness catering to the needs of customers. It entered 130 countries 290 subsidiaries and around a hundred agents. The group had marketed over 500 brands consisting 2000 products. It provided products for all sectors of beauty business. It has four product categories; consumer, luxury, professional, active. Their expansion strategy is more from acquisitions. They have one R&D center in france and one in U.S. have production plant one in France and one in India. Presently they are on upper hand but the global competitors such as Estee Lauder, Procter & Gamble and Unilever are not far behind. L’oreal constantly produces one or two products annually to keep up with the demand and stay ahead of competition. Since the market is highly globalized having R&D center in just two locations would put L’oreal in to weaker performance in future, although they are good at envisioning the demand. Overcoming the competition, addressing to male customers and gaining market share on ethnic beauty products are minor strategic issues they are facing if not