The company L'Oreal (L'Oreal) is today one of the most famous and successful companies in the world for the production of cosmetics. In addition to cosmetics brand L'Oreal (ĽOréal Professionnel and ĽOréal Paris), they also produce and sell cosmetics of prestigious luxury brands such as Giorgio Armani, Helena Rubinstein, Yves Saint Laurent, professional cosmetics Kerastase, Redken, Matrix and cosmetics Budget Garnier and Maybelline. Today, L'Oreal is the second value of the company in France, and the first place is occupied by the oil company Total Fina Elf. And the owner of L'Oreal is Liliane Bettencourt, the daughter of the founder, the richest woman in France. She owns 31% of the company plus a controlling stake, and 29.8% of L'Oreal are the property of the Nestlé Company, the remaining shares are public.
L’Oreal significant costs and advertising is 30% of total profits. It is one of those companies, which for the promotion of the brand actively using celebrities. L’Oreal was advertised by Penelope Cruz, Catherine Deneuve, Jennifer Lopez and Claudia Schiffer and many other rich, famous and beautiful women of our world.
There are different opinions of the reason of its success. Everything what is created by L’Oreal demonstrates the exclusivity and individuality. Some say that the name Maybelline reminds the energetic way of life of New Yorkers, but this brand belongs to a French company. Nevertheless the wide variety of companies with their own unique brands, this one is considered as ‘Beauty of the World’. This is much more than just affordable super-modern cosmetics that are "at the forefront of fashion" and the metropolis of beauty. The brand reflects this energy, image and style of New York.
Also, L’Oreal Paris includes a plenty of brands which produce similar products, so it fills the same market segment. But the company is ready to face with the economic self-destruction. Therefore, due to the unique politics L'Oreal has proven to the world that national identity does not prevent the success of brands, which includes the company, but due to their conservation benign changes occur.
In addition, most large companies are trying to get rid of the signs indicating their origin and nationality, so as not to cause a rejection of the brand in other countries. L'Oreal works the opposite way, focusing particular attention on the buyer of regional or national origin of the brand, emphasizing it and constantly referring to in the title. Similar examples have been in L'Oreal Paris and Maybelline New-York.
Lindsay Owen-Jones, one of the current owners of the company, says: "We have made great efforts to diversify as much as possible, but at the same time preserve the cultural flavor of brands developed by us." When in 1996, L'Oreal acquired Maybelline, paying 786 million dollars not to destroy the cultural flavor of newly acquired American counterpart.
L'Oreal is the combination of different brands for its hegemony in the market. It does not take away their right to exist in a form in which they were previously. It does not lose the uniqueness principle which is inherent in the time of occurrence of a particular brand in the market. This compares favorably with L'Oreal from other companies that accession smaller brands take their identity. He never tries to create new brands as well as a much more profitable to benefit from existing, that are currently interested in it. This company has always reached its goals. (Henderson & Johnson)
Henderson, Rebecca, & Johnson, Ryan. L’Oreal: Global Brand, Local Knowledge. Harvard Business School. 2012.