L’Oréal Mexico is investing in key drivers to maintain its strong growth momentum, continuously improve the service it provides consumers, meet all beauty needs and seize future opportunities. At the same time, it is fully committed to achieving a more sustainable model, in line with the Group’s social and environmental targets.
Kenneth Campbell
General Manager, L’Oréal Mexico
Mexico is an inspiring market with huge potential. Underpinned by an engaged and creative team, our Mexican subsidiary is competitive at both the local and global levels. Confident in the future, we’re capitalising on our production and distribution strengths, our digital transformation and our portfolio of complementary brands.
Mexico: a future growth market for beauty
A historic market with real promise
As the Group celebrates 60 years in Mexico, the Mexican subsidiary continues to grow rapidly. Its rise is underpinned by a portfolio of 23 brands whose complementarity already meets the beauty expectations of 46 million Mexican consumers in everything from consumer products and luxury to dermocosmetics and professional products. With a twelvefold increase in online sales from 2019 to 2022, e-commerce is another powerful growth driver, particularly thanks to savvy management of traffic and online influence. The subsidiary can also count on its perfectly gender-balanced workforce of 2,100 employees, who strive every day to grow the business.
One thing that makes the Mexican team unique is its overwhelmingly female management: women account for 70% of executives at the subsidiary. A number of local rankings have recognised L’Oréal for its human relations initiatives (in particular those supporting women) and sustainable development efforts (effectively combining social and economic performance with financial performance). The Group is also the “Best Employer” in Mexico, according to Forbes & Statista.
1stL’Oréal is the beauty leader in Mexico
No.1L’Oréal Mexico is the Best Employer in Mexico, according to Forbes & Statista
An environmentally-friendly regional production powerhouse
L’Oréal Mexico relies on a powerful distribution network and two manufacturing sites to deliver more than 550,000 products per day to nearly 3,000 distributors across the country. In 2022, Mexico’s two plants – in Xochimilco, Mexico City and Villa de Reyes, San Luis Potosi – celebrated their 60th and 10th anniversaries, respectively. They supply the local market and the broader Latin America Zone.
Already high-performance in terms of operations, the plants are accelerating their environmental efforts. The Xochimilco facility is increasing the capacity of its systems to be “Waterloop”, so that the water used for industrial purposes can be entirely recycled in a loop. The Villa de Reyes plant has committed to the same goal and is gradually transforming its production processes.
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Beyond the environmental initiatives at its plants, the entire subsidiary is undergoing a transformation so that its site achieve “carbon neutral” status by 2025. At the local level, the Group is working with CANIPEC, the national chamber of commerce for the cosmetics industry, to bring beauty companies together to create a countrywide waste management and recycling programme involving public and private players as well as consumers.
Supporting women
In Mexico, L’Oréal is also particularly committed to including women in the workforce: from 2020 to 2025, the Group will invest nearly 100 million pesos to empower 40,000 women, which the subsidiary has made a priority. This year, as part of the 60th anniversary celebrations for L’Oréal Mexico, the subsidiary launched Women who Move Mexico to promote gender equality by showcasing the lives of 60 women recognised for their leadership, careers and inspiring personal stories.
The L’Oréal Foundation in action
The L’Oréal Foundation’s Beauty for a Better Life programme will help at least 5,000 highly vulnerable women to find jobs in the beauty sector thanks to the training it provides. The Foundation has also recognised 93 Mexican female scientists over the past 20 years through its L’Oréal-UNESCO For Women in Science programme.
Four Divisions, four growth drivers
All four of L’Oréal’s Divisions achieved remarkable performance. The Dermatological Beauty Division is the unrivalled dermocosmetics leader in the market, where it capitalises on a model driven by recommendations from healthcare professionals. For example, La Roche-Posay is the country’s number one brand recommended by dermatologists. As for the Consumer Products Division, it recorded exceptional sales in all categories, brands, and distribution channels, especially in e-commerce. The Division’s premiumisation and innovation strategy has positioned it to meet the expectations of Mexican consumers, who want quality products at affordable prices. L’Oréal Luxe also grew, particularly in the skincare and fragrance categories, with the success of Libre by Yves Saint Laurent and the iconic perfume La Vie est Belle by Lancôme. Lastly, the Professional Products Division maintained dynamic growth with Kérastase and L’Oréal Professionnel, and events like the first ever Style & Colour Trophy, which combined the best online and offline inspiration for the more than 4,200 participating hairstylists.
