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  • L’Oréal Boosts Chinese Presence with Second Investment in Domestic Beauty Brands

    L’Oréal Boosts Chinese Presence with Second Investment in Domestic Beauty Brands

    French cosmetics giant, L’Oréal, has announced its minority stake acquisition in Chinese skincare brand, Lan, signifying its second investment in China within recent months. This investment comes at a time when local brands in China are experiencing significant growth.

    L’Oréal has chosen not to disclose the size or cost of the stake. However, Vincent Boinay, L’Oréal North Asia president and China CEO, emphasizes the importance of China in the company’s global strategy. Boinay affirms the company’s faith in China as a key player in the future of the industry.

    “This investment demonstrates our belief that investing in China equates to investing in the future. We intend to continue to nurture the Chinese market and collaborate with additional Chinese brands to create a prosperous future. Our aim is to meet the expectations of discerning Chinese consumers,” stated Boinay.

    This investment in Lan follows L’Oréal’s recent acquisition of a 6.67 per cent stake in Chando – a transaction that cost the company 442 million yuan (US$62 million), according to last month’s prospectus for the Shanghai-based company’s Hong Kong IPO.

    China’s Growing Domestic Market

    International brands have encountered challenges in China’s beauty and personal care market. This $75 billion industry has seen a growing proportion of domestic market share, known as C-Beauty, shift to local brands in recent years. This has taken place amid a backdrop of slowing overall growth, attributed to a long-standing property crisis and broad concerns over job stability.

    Investing in popular domestic brands could serve as a shortcut for L’Oréal to capitalize on the momentum of C-beauty, according to Ben Cavender, MD at Shanghai-based China Market Research Group.

    “L’Oréal, along with other international brands, are facing considerable pressure from domestic brands, which are launching new products at a faster rate and often exhibit more aggressiveness in marketing new skincare ingredients, concepts, and routines,” Cavender said.

    Last month, L’Oréal CEO, Nicolas Hieronimus revealed that the group’s China business experienced a quarterly growth of around 3 per cent, marking its first increase in two years.

    Competing with Local Brands

    Consultancy data obtained from Frost & Sullivan indicates that Chando Group ranks as China’s third-largest home-grown beauty player in retail sales, following Proya and Chicmas. Both Chando and Lan emphasize natural, clean ingredients as their unique selling points.

    Yang Hu, Apac insight manager at Euromonitor International, suggests that Chando’s stronghold in the mass-market price range (mainly retailing between 49-390 yuan) and its accessibility in China’s smaller cities could offer resources to aid L’Oréal’s recovery in the country, without directly competing with the group’s central brands.

    Questions & Answers

    Why is L’Oréal investing in Chinese brands?
    L’Oréal is investing in Chinese brands to capitalize on the rapidly growing domestic market, which could provide a platform for their expansion and recovery in China.

    What challenges are international brands facing in China’s beauty market?
    International brands are facing pressure from domestic brands, which are launching new products more rapidly and executing more aggressive marketing strategies for new skincare ingredients, concepts, and routines.

    How is L’Oréal’s investment in Chando aiding their position in the Chinese market?
    Chando’s stronghold in the mass-market price range and its accessibility in China’s smaller cities could offer resources to aid L’Oréal’s recovery in the country, without directly competing with the group’s central brands.

  • Kering Divests Beauty Division To L’oreal For $4.6b: A Strategic Push For Luxury Fashion Focus

    Kering Divests Beauty Division To L’oreal For $4.6b: A Strategic Push For Luxury Fashion Focus

    In a significant maneuver towards streamlining its operations, luxury conglomerate Kering has divested its beauty division to L’Oreal. The deal, valued at US$4.6 billion (EU$4 billion), is part of Kering’s broader strategy to concentrate on its essential fashion brands.

    Agreement Details

    Under the terms of the agreement, L’Oreal has gained 50-year exclusive rights to manufacture, develop, and circulate fragrances and cosmetics for renowned brands like Creed, Bottega Veneta, and Balenciaga. Furthermore, the deal encompasses the forthcoming acquisition of Gucci Beauty once its current license with Coty concludes.

    Kering’s CEO, Luca de Meo, views this partnership as a significant leap towards enhancing the expansion of its fragrance and cosmetics houses. De Meo expressed his optimism about the partnership, stating it would drive scale in the beauty sector and uncover extensive long-term potential for the brands.

    Strategic Coordination and Joint Ventures

    To ensure brand consistency, a strategic committee will be instituted to facilitate coordination between Kering’s brands and L’Oreal. The committee’s function will be to provide an alignment that reinforces the brands’ coherence across different categories.

    Additionally, both companies have plans to probe into potential business prospects through intended 50/50 joint ventures. These ventures are seen as opportunities to strengthen their brand portfolios and expand market reach.

    L’Oreal’s CEO, Nicolas Hieronimus, believes the partnership will assist in broadening the company’s reach into high-growth segments. Hieronimus is confident that this alliance will position them as leading contenders in the rapidly expanding niche fragrance market. He lauded Gucci, Bottega Veneta, and Balenciaga as exceptional couture brands possessing considerable potential.

    Deal Closure

    The agreement is anticipated to conclude in the first half of next year, with payment to be made in cash. The deal’s completion is still contingent on receiving regulatory approval.

    Questions & Answers

    What does this deal mean for Kering?
    This deal allows Kering to focus on its core luxury fashion houses, while also potentially enhancing the growth of its fragrance and cosmetics brands through a partnership with L’Oreal.

    How will L’Oreal benefit from this deal?
    L’Oreal will acquire exclusive rights to manufacture and distribute products for some of the world’s most prestigious brands, thus potentially expanding its influence in high-growth segments and the niche fragrance market.

    What are the future plans of both companies post this deal?
    Both companies plan to establish a strategic committee to ensure brand coherence. They also intend to explore possible business opportunities through equal stake joint ventures.

  • Giorgio Armani Guides Heirs on Strategic Sale of Fashion Empire to LVMH and L’Oréal

    Giorgio Armani Guides Heirs on Strategic Sale of Fashion Empire to LVMH and L’Oréal

    The fashion world is in mourning following the death of Giorgio Armani, who passed away on September 4 at the age of 91, leaving behind an empire that industry analysts value between 5 billion and 12 billion euros (approximately US$5.9 billion to US$14 billion). Known as “King Giorgio,” the designer had no children to inherit his renowned label.

    Legacy in the Hands of Influential Players

    According to his will, priority for the estate is to be given to luxury giant LVMH, beauty behemoth L’Oréal, eyewear leader EssilorLuxottica, or another qualified group identified by a foundation he established to preserve his legacy. Notably, this was done in collaboration with Armani’s business and life partner, Pantaleo Dell’Orco. All three companies acknowledged their openness to exploring potential arrangements.

    The mention of stake sales and the inclusion of well-known French companies as possible buyers came as a surprise, considering Armani’s longstanding commitment to maintaining control over his fashion group—a brand that continues to retain significant prestige, even amid a global luxury slowdown.

    Potential Partnerships Spark Excitement

    LVMH, led by billionaire Bernard Arnault, expressed gratitude to be mentioned in Armani’s will. “Giorgio Armani honors us by naming us as a potential partner for the exceptional fashion house he has built,” Arnault stated. He suggested that if a partnership were to materialize, LVMH would be dedicated to bolstering its presence globally.

    EssilorLuxottica, closely linked to Armani through commercial partnerships, also indicated a willingness to consider a potential deal. Meanwhile, L’Oréal, which currently holds a licensing agreement with the Armani group until 2050, revealed plans to explore this new opportunity. It’s quite the fashion ‘who’s who’ vying for a piece of the pie, with all eyes on the future.

    A Shift in Control and New Directions Ahead

    Analysts believe that LVMH is likely the most interested party in acquiring a stake in Armani, emphasizing the strategic alignment between their businesses. They estimate that a stake could be valued between 5 billion and 7 billion euros, and LVMH appears well-positioned financially to proceed if an opportunity arises.

    Armani’s will, comprised of two documents filed earlier this year, stipulates that heirs should sell an initial 15% stake in the fashion house within 18 months of his passing. A further transfer of an additional 30% to 54.9% stake is to follow three to five years thereafter, emphasizing a structured approach to the transition of control. Alternatively, an initial public offering (IPO) may be pursued if the heirs prefer different exit strategies.

    These provisions are largely binding and could be subject to challenges in court if unmet, according to Italian legal experts. Known for revolutionizing modern fashion with his minimalist approach to jackets and suits, Armani had rebuffed several acquisition attempts over the years, including approaches from Gucci and John Elkann of the Agnelli family.

    The Future of Armani’s Vision

    Maintaining a firm grip on both creative and operational leadership, Armani has left a business generating stable revenues—an impressive 2.3 billion euros (around US$2.7 billion) in 2024—but one struggling with shrinking profits, now less than 3% of revenue according to Berenberg’s calculations.

    The will details various share types with different voting rights, ensuring that the Fondazione Giorgio Armani and Dell’Orco together control a significant 70% of the company. The foundation is committed to holding no less than 30% of the capital, serving as a safeguard of Armani’s founding principles, and is tasked with proposing a successor to lead the group.

    While the world waits to see what direction Armani’s heirs will take, one thing is clear: the legacy of Giorgio Armani will continue to influence fashion on a global scale.

    Questions & Answers

    What are the estimated values of Giorgio Armani’s fashion empire?
    The fashion empire is estimated to be worth between 5 billion and 12 billion euros (approximately US$5.9 billion to US$14 billion).

    Who are the potential buyers mentioned in Armani’s will?
    The potential buyers include luxury conglomerate LVMH, beauty giant L’Oréal, and eyewear leader EssilorLuxottica, with the possibility of other equally qualified groups being considered.

    What does Armani’s will stipulate regarding the transfer of ownership?
    The will requires heirs to sell an initial 15% stake within 18 months of Armani’s death, followed by an additional 30% to 54.9% stake within three to five years, or to pursue an IPO if preferred.

  • L’Oréal Invests In Asian Manufacturing For Greener, Localized Beauty Products

    L’Oréal Invests In Asian Manufacturing For Greener, Localized Beauty Products

    As the retail landscape in Asia rapidly evolves, global brands are increasingly eyeing the region for their strategic expansion plans. A striking example is the decision by major cosmetics player L’Oréal to significantly ramp up its investment in local manufacturing capabilities, reflecting an acute understanding of the region’s unique market dynamics and consumer preferences.

    Investing in Local Manufacturing

    L’Oréal recently announced its commitment to invest over €150 million in its manufacturing facilities in various Asian markets, including Vietnam and China. This investment is not just about increasing production capacity; it’s a calculated move aimed at enhancing supply chain efficiency and ensuring that the company can quickly respond to the ever-changing trends that define the beauty industry in Asia. With products flying off the shelves at the speed of light, L’Oréal is positioning itself to capture the hearts—and wallets—of consumers who increasingly crave local and authentic experiences in their beauty regimes.

    What makes this investment even more compelling is L’Oréal’s clear intention to incorporate eco-friendly practices within their production lines. By integrating sustainable technology, the brand is not simply keeping pace with consumer expectations but is actively setting the stage for a greener retail future in a region that is becoming more environmentally conscious.

    Market Trends Fueling Growth

    The move comes amid significant shifts in consumer behavior across Asia. In particular, digital engagement and e-commerce sales are skyrocketing, with beauty products becoming some of the most sought-after items online. L’Oréal’s decision to fortify its manufacturing presence underscores a broader trend among brands aiming to localize their offerings. This not only streamlines operations but also aligns products more closely with local tastes and cultural nuances, providing a personalized shopping experience that many consumers are now demanding.

    Moreover, the beauty market in Asia is projected to grow exponentially in the coming years, bolstered by a diverse demographic and an influx of youthful consumers eager to experiment with new products and trends. With this pivotal investment, L’Oréal is not merely playing catch-up but rather, making a bold statement that it intends to lead in this dynamic marketplace.

    Consumer Engagement at the Forefront

    Brands like L’Oréal are also innovating in how they engage with consumers. Interactive campaigns on social media, coupled with influencer partnerships, are reshaping traditional marketing tactics. Rather than simply advertising products, L’Oréal is entering a dialogue with its consumers, which is often more effective. After all, in a world flooded with choices, who wouldn’t want to be engaged by the brands they love?

    Furthermore, the ability to produce and distribute products locally allows L’Oréal to experiment with limited-edition launches tailored specifically for Asian markets. The idea of creating something exclusive that resonates locally adds not just value but a tantalizing element of desirability—because, let’s face it, who doesn’t love a product that feels tailored just for them?

    A Bright Future Ahead

    With these strategic investments and innovations, L’Oréal is well-positioned to thrive in Asia’s retail sector. By balancing local production with sustainable practices, and by engaging deeply with consumers, the brand is crafting a path that many others may soon follow. As the beauty industry continues to flourish, one thing is clear: the best is yet to come, and the sparkle of local engagement combined with a global brand ethos is set to dazzle Asian consumers.

    Questions & Answers

    How much is L’Oréal investing in its Asian manufacturing capabilities?
    L’Oréal is committing over €150 million to enhance its manufacturing facilities in several Asian markets, including Vietnam and China.

    What impact do local manufacturing investments have on consumer preferences?
    By localizing production, L’Oréal can better cater to regional tastes and preferences, creating a more personalized shopping experience for consumers.

    Why is sustainability important in L’Oréal’s investment strategy?
    Integrating sustainable practices in manufacturing responds to the growing environmental consciousness among consumers, positioning L’Oréal as a responsible leader in the beauty industry.

  • Rodrigo Pizarro Appointed As New Ceo Of L’oreal Korea: A Vision For Innovation And Deepened Collaboration

    Rodrigo Pizarro Appointed As New Ceo Of L’oreal Korea: A Vision For Innovation And Deepened Collaboration

    Rodrigo Pizarro has been announced as the new Chief Executive Officer for L’Oreal Korea, effective immediately. Pizarro brings an impressive 30-year experience from within the L’Oreal organization to the role.

    Three Decades of L’Oreal Experience

    Pizarro’s history with L’Oreal dates back to 1993 when he joined the company’s Portugal division. Over the years, his expertise in digital and data-driven initiatives has made significant impacts within the organization, spanning multiple regions.

    Throughout his career at L’Oreal, Pizarro has been in leadership positions in various regions including Europe, South America, and the Asia-Pacific. His ability to lead across different cultures and markets demonstrates his adaptability and capacity to understand diverse consumer behavior.

    Multiple Leadership Roles

    Pizarro’s leadership roles within L’Oreal have been extensive and diverse. He has successfully led the consumer products division in both Venezuela and Hungary, displaying a strong understanding of different market dynamics.

    Moreover, Pizarro has also held the position of country manager for several regions, including Venezuela, Portugal, Australia, and New Zealand. His time in Australia and New Zealand was particularly noteworthy as he spearheaded the company’s digital transformation in these countries, implementing AI-powered business models.

    Contributions to L’Oreal’s Digital Transformation

    In 2020, Pizarro served as the Chief Transformation Officer for the Sapmena region, which includes South Asia Pacific, the Middle East, and North Africa. In this role, he played a significant part in advancing decision-making initiatives across multiple facets of the business: commercial, marketing, and operations.

    Upon his appointment, Pizarro emphasized the importance of L’Oreal Korea’s relationship with the Korean industry since its establishment in 1993. He expressed his enthusiasm about the opportunity to deepen this collaboration and pledged to continue promoting Korea’s innovative spirit on the global stage.

    Questions & Answers

    What is Rodrigo Pizarro’s background with L’Oreal?
    Rodrigo Pizarro has been with L’Oreal since 1993 and has held various leadership roles in multiple regions, including Europe, South America, and the Asia-Pacific.

    What significant role did Pizarro play in Australia and New Zealand?
    Pizarro led L’Oreal’s digital transformation efforts in Australia and New Zealand, which included the implementation of AI-powered business models.

    What are Pizarro’s plans for L’Oreal Korea?
    Pizarro intends to deepen the collaboration between L’Oreal Korea and the Korean industry, with an aim to further highlight Korea’s innovative spirit on the world stage.

  • L’Oreal acquires South Korea’s Dr.G in skincare deal with Migros

    L’Oreal acquires South Korea’s Dr.G in skincare deal with Migros

    French cosmetics giant L’Oreal said on Monday it had agreed to buy Gowoonsesang Cosmetics, which includes South Korean skincare brand Dr.G., from Swiss retailer Migros.

    The Korean beauty market is dominated by local brands known for being among the world’s most innovative, and increasingly popular overseas as part of a trend for ‘K-Beauty’.

    Dr.G will meet rising demand for K-Beauty and effective yet affordable skincare, L’Oreal said in a statement, adding that it has a growing pan-Asian presence and global growth potential.

    “We have been following the brand and its success for many years and we look forward to accelerating its growth in South Korea and the rest of the world,” said Alexis Perakis-Valat, global president of L’Oréal’s consumer products division.

    Reuters reported on Friday that L’Oreal and Migros were in final talks on a deal. Migros announced a strategic review of its Mibelle cosmetics group in February, saying it wanted to find a new home for the owner of Gowoonsesang and other brands.

    L’Oreal did not give a valuation for the deal, which comes amid a slowdown in China, previously one of the fastest-growing beauty markets.

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  • L’Oreal expands its beauty innovation program across North Asia

    L’Oreal expands its beauty innovation program across North Asia

    L’Oreal’s Big Bang Beauty Tech Innovation Program (Big Bang) has expanded across its North Asia markets, including a recent launch in Hong Kong and Taiwan.

    Launched in Mainland China in 2020, the program aims to drive growth in the beauty industry through key partnerships with startups, fostering a culture of co-creation and co-development of innovative beauty products and experiences.

    For instance, L’Oreal Japan partnered with the Ministry of Economy, Trade, and Industry last year to research skin and haircare technologies.

    Similarly, L’Oreal Korea has launched a dedicated digital tracking system following its collaboration with the Ministry of SMEs and Startups through an MOU at Viva Tech last year.

    This year, L’Oreal Taiwan has kicked off its Big Bang recruitment, focusing on a “Green Beauty Consumer Journey.” It has partnered with the Taipei Computer Association (TCA) to champion local sustainability innovations for a circular economy, eco-friendly design, and improved consumer engagement.

    Meanwhile, L’Oreal Hong Kong has introduced the city’s first open innovation accelerator, focusing on crafting immersive, multi-sensory experiences within brand spaces to enhance customer interactions.

    “As Big Bang takes root across North Asia, we promise to usher in a new era of beauty innovation,” said the company. “L’Oreal is proud to be at the forefront of this exciting evolution, solidifying its position as a beauty tech leader in the region and beyond.

    Since its launch, the Big Bang program has engaged over 2000 companies and brought more than 50 business projects to fruition.

  • L’Oreal names Adrien Koskas GM for consumer products

    L’Oreal names Adrien Koskas GM for consumer products

    Cosmetics giant L’Oreal has named Adrien Koskas as GM for the consumer products division (CPD) of its South Asia-Pacific, Middle East and North Africa regions (SAPMENA).

    Koskas will report directly to Vismay Sharma, president of SAPMENA, based in Singapore, in his new role.

    L’Oreal’s CPD houses four of the company’s major brands: L’Oreal Paris, Maybelline New York, Garnier, and NYX Professional Make-Up.

    Described as a “pioneering brand builder,” Koskas brings extensive experience in global leadership and marketing to his new role, with an 18-year career at L’Oreal.

    He previously served as the global brand president of Garnier since 2019, where he achieved record growth and launched Green Beauty, the flagship brand for the group’s sustainability commitment.

    Koskas has also held various leadership positions in France, Brazil, and the UK, including serving as GM, CPD for L’Oreal UK & Ireland.

    “With 3 billion people, SAPMENA is a highly strategic region full of opportunities and new ways to engage with young, digital and beauty-savvy consumers who represent many cultures and beauty aspirations,” said Koskas on his new appointment.

    “It is also the perfect environment to embrace cutting-edge innovations in many fields to deliver our high growth ambition.”

    Koskas succeeds Manashi Guha, who takes on a new role as MD, CPD for L’Oreal UK & Ireland.

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  • L’Oreal Group ANZ appoints Alex Davison as its new CEO

    L’Oreal Group ANZ appoints Alex Davison as its new CEO

    Alex Davison has been appointed the new CEO of L’Oreal Group ANZ, succeeding Rodrigo Pizarro.

    Davison has served as the CEO of L’Oreal Greece for the past three years. According to the group, Greece has continuously been among the fastest-growing markets in Europe under his leadership, with the company achieving three years of double-digit growth, and building market share in every business channel.

    “This aligns with my personal leadership values and I’m looking forward to working with the team as we build brands tailored for Australian and New Zealand consumers, and a business focused on sustainability and diversity,” said Davison.

    He also oversaw the group and was honoured in Greece as a ‘Top 20 Company Changing the World for Good’, award by Fortune magazine.

    In 2016, Davison began working for the L’Oreal Group as the UK GM of the business division for Dermatological Beauty. Prior to that, he worked for Procter & Gamble for 17 years.

    L’Oreal purchased Australian luxury cosmetics business Aesop from Brazil’s Natura & Co Holding earlier this year for US$2.525 billion (A$3.7 billion).

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  • L’Oreal launches make-up applicator for people with limited mobility

    L’Oreal launches make-up applicator for people with limited mobility

    L’Oréal has debuted a motorised, handheld device that allows people with limited hand and arm mobility to apply make-up steadily.

    The slender new product uses motion sensors and magnetic attachments that enable make-up application in 360-degree rotations and 180-degree flexions, according to the company.

    The move is part of the cosmetics industry’s push to develop products for people with disabilities – a generally untapped market that is believed to be worth $1.2 trillion (£990 billion). Thus far, these efforts have largely focused on creating ergonomic products, such as make-up brushes that can bend and are easier to grip, and easy to open moisturisers.

    L’Oréal says the new Hapta device is aimed at the 50 million people around the globe with limited fine motor skills, including those with cerebral palsy or who have suffered a stroke.

    The product, unveiled at the CES tech show in Las Vegas, will be piloted with a lipstick applicator later this year from L’Oréal brand ​​Lancôme.

    L’Oréal and Verily began collaborating on skincare and digital dermatology tools in January.

    “Beauty tech [is] revolutionising the way we develop beauty products and services and enabling greater personalisation,” said Françoise Lehmann, Lancôme’s global brand president. “With Hapta we are going one step further by making beauty more accessible to use, because everyone should have equal access to it.”

    Also at CES, the cosmetics company announced a Brow Magic applicator that offers personalised eyebrow looks based on face scans from an accompanying app.

    The product has 2,400 small nozzles and a printing resolution of up to 1,200 drops per inch. L’Oréal says it can apply a precise brow shape in seconds and can be removed using a standard makeup remover. Brow Magic looks at the user’s face shape and thickness to make recommendations for microblading, micro-shading or filler effects. The product is scheduled to arrive later this year.

  • L’Oreal Groupe launches 19 new boutiques in Haikou Duty Free

    L’Oreal Groupe launches 19 new boutiques in Haikou Duty Free

    Travellers can experience professional consultation services for skincare, make-up, and haircare, along with personalised treatments at professional skincare cabins by Lancôme, Helena Rubinstein, SkinCeuticals and Armani Beauty. An array of tech-enabled beauty services will also be available, including Lancôme Skin Screen, SkinCeuticals SkinScope, L’Oréal Paris Science Table, Yves Saint Laurent (YSL) Neuro Fragrance Consultation, Kérastase’s Kérascan for scalp and hair, and a blow dry service pop-up.

    With CDFG’s “Scan and Purchase” initiative, customers can make purchases with reduced queuing and waiting time.

    All store counters were constructed using eco-certified and recyclable materials and pop-ups and future retail animations will be built on L’Oréal’s Eco-Design Golden Rules, where certified recycled FSC, PESC, and mono materials are optimally-weighed, made redressable, separable for disassembly, and old fixtures from previous animations to be reused.

    L’Oréal Travel Retail President Vincent Boinay said: “As L’Oréal Travel Retail and China Duty Free Group, we share the same passion to provide beauty for all travellers. Haikou International Duty Free Shopping Complex is a symbol of our 20 years of great collaboration. We are proud to showcase the best of beauty with our 19 brand flagship boutiques welcoming Chinese travellers to live the exclusive L’Oréal experience – best in retail expression, best in beauty tech innovation, best in services, best in engagement and best in sustainability.”

    China Duty Free Group President Charles Chen said: “With CDF Haikou International Duty Free shopping complex, CDFG’s vision is to build a shopping destination that will set a new benchmark for travel retail. We are delighted with the 19 outstanding and amazing beauty boutiques, services and experiences that L’Oréal has designed for our complex. These boutiques will certainly give our travelers many reasons to visit and repeat.”

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  • L’Oreal Korea names Samuel de Retail as its new CEO

    L’Oreal Korea names Samuel de Retail as its new CEO

    L’Oreal Korea announced Monday that it appointed Samuel du Retail as the new chief of its Korea operation.

    The new CEO has worked at the France-headquartered global cosmetics company since 1996. Over the past 26 years at the firm, du Retail has assumed various key roles, including finance, management and e-commerce.

    He served as CFO at L’Oreal China from 2006 to late 2011, which was followed by another CFO position representing the Western Europe operation of the company from 2012 to 2013. He went on to serve as global CFO of the consumer products division in France from 2013 to 2016, continuing working as general manager for the consumer products division in China from 2017 to 2020.

    Before his latest promotion, his previous role at the firm had been as a group e-commerce general manager in France from October 2020 to earlier this year. He’s been attributed with the successful growth of L’Oreal and Maybelline in the Chinese market. He also led significant growth in the profitability of the company’s e-commerce efforts.

    “I am very pleased to work as the chief of L’Oreal Korea, as Korea is leading the global beauty market with its K-beauty trends,” du Retail said, adding that he will focus on cooperative leadership to continue the innovative path of L’Oreal in the country.

  • L’Oreal buys US vegan brand Youth to the People

    L’Oreal buys US vegan brand Youth to the People

    L’Oreal has added American vegan skincare brand, Youth to the People, to its portfolio of skincare brands.

    Founded in 2015 by two cousins, Greg Gonzalez and Joe Cloyes, the brand is known for formulas that combine premium vegan blends of superfood extracts with science.

    “Its skincare expertise based on healthy, vegan, high-efficacy formulas make it a very strategic addition to L’Oreal Luxe,” said Cyril Chapuy, president of L’Oreal Luxe.

    “The brand’s core values and distinctive spirit reflected in its initiatives to amplify diverse voices, build a fairer world, and enhance consciousness of the planet will be further celebrated at L’Oreal not only because they are precious to us, but because they are very true to our own values.”

    The brand’s investors include Sandbridge Capital, Strand Equity and Carisa Janes. Its products are available across the US, Canada, Australia and selected European countries. The brand is expected to record more than US$50 million of sales this year.

    “We founded Youth to the People to continue our family’s legacy of making skincare and to inspire and represent our community,” said Cloyes and Gonzalez.

    “Joining the L’Oréal family gives us the opportunity to realize all the dreams of Youth to the People.”

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  • Nestle trims L’Oreal stake with $10 billion sale

    Nestle trims L’Oreal stake with $10 billion sale

    Nestle SA said on Tuesday it would cut its stake in L’Oreal to about 20% by selling shares worth 8.9 billion euros ($10 billion) back to the French cosmetics brand, moving to reduce the weight of the beauty giant on its books for the first time in 7 years.

    The Nescafe maker’s holding in the beauty giant has been subject of intense scrutiny over the years, and the Swiss company has maintained its interest was both financial and strategic, even when activist investor Third Point urged disposal in mid 2017. Since then, L’Oreal shares have more than doubled.

    Seeking to reduce the weight of its L’Oreal holding while maintaining a level above 20%, allowing it to consolidate the investment on accounts, Nestle approached L’Oreal two months ago, kicking off a flurry of negotiations that involved chairmen of both companies, according to a source with knowledge of negotiations.

    Following the deal, Nestle said it would own 20.1% of L’Oreal, down from 23.3% previously. L’Oreal, meanwhile, would buy back shares representing 4% of its capital and cancel them at the latest on Aug. 29.

    L’Oreal, which is paying 400 euros per share, said the deal will have an accretive effect on the company’s earnings per share of more than 4% in a full year. The beauty company is paying with cash and debt.

    As a result of the transaction, which is expected to close in the coming days, the Bettencourt Meyers family, will see their stake rise to 34.7% from 33.3%, but will not be required to launch a takeover offer, as normally required for passing ownership thresholds above one-third of the capital.

    L’Oréal stock ended Tuesday up 3.96% at 424.8 euros while Nestle gained 0.1% to 121.9 Swiss francs.

    The packaged foods maker also said its board had decided to buy back 20 billion Swiss francs ($21.6 billion) worth of its shares between 2022 and 2024, adding that it would adjust this program should it make sizable acquisitions.

    Nestle said it would terminate its current share repurchase plan by the end of the year, having bought back shares for 12.7 billion Swiss francs or almost two-thirds of the program volume.

    L’Oreal around four years ago underscored https://reut.rs/3GqHqcP its readiness to buy Nestle’s 23% stake if the Swiss shareholder was to sell it.

    Nestle in October 2019 closed the sale of its skin health business for 10.2 billion Swiss francs, as the group moved to ditch underperforming businesses.

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  • L’Oreal predicts ‘Roaring 20s’ retail resurgence post Covid

    L’Oreal predicts ‘Roaring 20s’ retail resurgence post Covid

    Beauty giant L’Oréal, besides posting financial results that beat expectations, is offering high-level optimism, promising a resurgence in sales and a new “Roaring ’20s.”

    “Like a flower after winter, beauty is ready to blossom after COVID goes away,” says Nicolas Hieronimus, the Paris-based conglomerate’s incoming chief executive officer, in a webcast for investors.

    Adding that the company is already seeing fiesta-like gains in China, “we are confident that, like in the roaring ’20s, there will be a big beauty party. Beauty is and always will be essential.”

    Those upbeat remarks are likely to cheer up many in the industry. Between working from home, wearing masks and keeping six feet away from anyone, consumers felt little reason to buy makeup or spritz on fragrances, depressing sales.

    The NPD Group, a market research company that tracks beauty sales, reports that prestige cosmetics tanked 19% for the full year, falling to $16.1 billion. Makeup dropped the most, down 34%.

    L’Oreal’s Hieronimus made his remarks as the company presented solid quarterly results. Even as industrywide sales tumbled, L’Oréal bucked the trend. Comparable sales rose 4.1% in its fourth quarter, and the company says it is winning significant market share gains in many categories.

    The company’s ecommerce revenues soared 62%, with gains in all geographic regions. It now accounts for a record 26.6% of the total sales for the year. “The huge surge is helping to democratize beauty,” he says. “And consumers of beauty remain strong. We saw rapid recovery everywhere when stores reopened.”

    Hieronimus also says he expects the company to continue to benefit from skincare’s growing importance, which now accounts for 40% of sales.

    In terms of marketing, he says digital spending now accounts for 60% of its budget.

    Describing beauty as “both a need and an aspiration,” Hieronimus says he believes the company will continue to outperform competitors because of its focus on data, AI, research and innovation. “We are ahead of the curve in digitalization.”

    And he says consumers will continue to reward companies with a strong brand purpose, a commitment to social values and “acting for the greater good. We create the beauty that moves the world.”

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