A growing market :
Since 1990, the world cosmetics market has been growing at twice the rate of the annual global average GNP. It is still growing even in developed countries, thanks to new demands and new markets, but the growth of the cosmetics market is especially important in the emerging countries where the correlation between economicdevelopment and consumption of cosmetics is strong. (Size of cosmetics market, 1991: 63.4 billions of dollars and in 2005: 116.7 billions of dollars)
Loreal Figures :
Turnover on cosmetic segment for 2005:
Share of cosmetic’s turnover by division:
Share of cosmetic’s turnover by business segment:
Share of cosmetic’s turnover by geographic zones:Cosmetic’s turnover of Loreal is 14.2145 millions of euros.
The division most important is consumer products with 52.8% of turnover either 7.499 millions of euros follow of luxury product with 25.2% of turnover and professional product.
For segments, you have two segment equivalent haircare and skincare with 24% for both; follow by make up with 21% of turnover.
Finally, the most important geographiczone is Western Europe with 6.7 millions follows North America with 3.8 millions of euros, but you have different evolution in other part of the world with an important growth of sales. (For example Eastern Europe with + 34.3% for 2005)
Market trends :
Men today are changing, and are no longer so bound by their traditional roles: they have gradually adopted more variedlife styles, and are devoting a greater proportion of their time to their families. Taking care of one’s appearance is no longer taboo. It is one aspect of feeling good about oneself. The way a man dresses and takes care of himself can even become a pleasure. All over the world, for new generations of men, skincare and haircare have become quite natural concerns.
Men represent a large market; infact they are half of the world population
You have got different between countries for example:
In Europe, men are using skincare represent 24%, in Japan some 30% and in South Korea they are 80%.
All of this, explain one thougs very important men take more and more care of themselves.
Loreal responds at needs of men who are hedoniste.
The target is clear, it is urban men who areextremely well informed about cosmetics and who they want take care of him.
For sometime, Loreal knows the important to offer at the different people around the world, products that correspond at the particular of these ethnics.
About skin, hair and all components of people.
Also loreal would touch a maximun people around the world to offer the good product for the good market.Women pull the cosmetics‘s market
It’s too important doesn’t forgot, the main consumer of this market:
« The Women »
The women represent an important share of turnover of Loreal; women represent around 95% of the market so it is a main customer that firms want to touch. They pull the cosmetic market day after day.
One communication asphyxiating for hercompetitors
Today Loreal is known by all for the efficient of her communication. The brand of image is an advantage competitor, the group are developing one communication strategic very important.
The best communication of the group is the slogan of Loreal Paris “ Parce que je le vaux bien” “Because I worst it”.
Often criticize by all, Loreal and this slogan is known by all.
The communicationof one group like Loreal is her capacity of differentiation in specific market and monopolizes adverting space.
Loreal group are developing her commercial communication at international level in using the same advertise all it is implant; they just adapt the communication at the different culture an thing of countries. But the background it is the same.