Here’s Why L’Oreal’s Active Cosmetics Is The Highest Growing Segment For The Company And Is Also A Market Leader

by Trefis Team
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Last year, L’Oreal’s Active Cosmetics division (pertaining to sensitive skin or dermatological conditions) had been demonstrating the highest year-on-year sales growth of around 8% (like-for-like) for the company. L’Oreal is the global market leader in this segment. All its geographies showed growth with Latin America, Brazil, Asia and Africa, and the Middle East achieving two-digit growth for 2015.

active cosmetics

(Source: L’Oreal’s Annual Report)

Some of the strategies for L’Oreal’s success and market leadership in this segment are as follows:

  • L’Oreal’s strong partnerships with healthcare professionals help the company to continuously innovate and provide more effective products in this segment.
  • The company’s Global Summit of Pharmacy Leaders brought together 300 pharmacists, and pharmacy and drugstore chains, in order to train pharmacists to develop the active cosmetics business and also help them to provide digital sales and skincare solutions.
  • The segment implements a multi-channel approach and digital tools to reach a wider client base. The concept of health combined with beauty is an attractive one which L’Oreal effectively sells through channels including dermacenters, online, and through travel retail.

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Notes:

1) The purpose of these analyses is to help readers focus on a few important things. We hope such lean communication sparks thinking, and encourages readers to comment and ask questions on the comment section, or email content@trefis.com
2) Figures mentioned are approximate values to help our readers remember the key concepts more intuitively. For precise figures, please refer to our complete analysis for L’Oreal
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