The Division continues to build momentum, underpinned by a balanced portfolio of strong, complementary brands including the Group’s historic mainstays, couture brands and recent acquisitions. Bolstered by its unique expertise and remarkable ability to innovate, L’Oréal Luxe is able to provide exceptional experiences, enhance the appeal of its brands and continue to outperform the dynamic luxury beauty market.
What were the strategic choices that empowered the Division to outperform the luxury beauty market once again in 2022? Discover the key trends and highlights of the year with Cyril Chapuy, President, Luxe.
Thanks to its unrivalled portfolio of aspirational brands and its incredibly talented team of luxury experts, L’Oréal Luxe is perfectly equipped to meet the expectations of ever more demanding luxury consumers around the world.
L’Oréal Luxe recorded strong growth, at +10.2% like-for-like and +18.6% reported, outperforming a global luxury beauty market that proved dynamic again this year.
L’Oréal Luxe strengthened its leadership in fragrance, the fastest-growing category in the selective market. In skincare, the Division grew three times faster than the market, spurred by the ultra-premium segment. In an unsettled environment, particularly in the second half of the year with the drastic slowdown of the Chinese market, the Division confirmed the strength of its geographic footprint which has allowed it to reinforce its global market share since 2019. The Division grew in step with the market in Europe and significantly increased its position in North Asia.
+10.2%growth in Division sales, like-for-like
12thconsecutive year outperforming the luxury beauty market
+23%growth in fragrance sales
35.8%of sales in e-commerce
Highlights
Fragrance and highend skincare: ultra luxury in 2022
Boosted by growth in the fragrance and ultrapremium categories and sustained by the success of its global mainstays and wildly successful new launches, L’Oréal Luxe continued to flourish.
L’Oréal fragrances once again secure top spots
Fragrances spurred L’Oréal Luxe growth in 2022, in large part thanks to heightened interest in the category from Gen Z in Asia. The Division was able to capitalise on global mainstays, such as La Vie est Belle by Lancôme and Libre by Yves Saint Laurent, which once again earned a spot in the global Top 10. It also gained a fillip from exceptional fragrances, like those by Maison Margiela and Armani Privé, which are powerful growth drivers. Further impetus came from remarkable new launches, epitomised by Paradoxe, the muchanticipated first women’s fragrance since L’Oréal acquired the Prada license, which enjoyed a simultaneous global launch, and the new Armani Code.
The brands are constantly reinventing themselves. In 2022, Mugler celebrated 30 years since the launch of its iconic fragrance, Angel. But the brand continues to innovate: by reimagining the fragrance fountain tradition, Mugler has made it possible for consumers to keep their bottles and refill them at points of sale since 1992. It also sells individual refills for athome use.
In 2022, the Division’s entire portfolio of iconic fragrances accelerated its rollout of refillable bottles. Seeking more sustainable and responsible luxury, consumers welcomed the new refillable bottles for fragrances such as My Way and Acqua Di Gio by Giorgio Armani, La Vie est Belle by Lancôme and Paradoxe by Prada.
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Ultrapremium skincare spearheads performance and innovation
L’Oréal Luxe continued to expand the skincare category by capitalising on ultrapremium brands, like the billionaire franchise Lancôme Absolue, and Helena Rubinstein. The Division also pursued growth in this category for its couture brands and recent acquisitions, such as Takami and Youth To The People. Ultrapremium skincare’s spectacular performance is underpinned by significant investments in Research & Innovation to foster continuous innovation, which ensures superior product quality. Lancôme Rénergie H.C.F. Triple Serum – formulated with three powerful active ingredients delivered via a revolutionary, hightech bottle that keeps them separate until application – is an excellent example. The serum’s effectiveness is amplified by the lastminute fusion of the three ingredients. Sales of this cuttingedge product are off to a spectacular start in all markets.
Division brands have seized on Beauty Tech to bring consumers an unrivalled experience in all areas, from products and services to personalisation. By creating an emotional bond augmented by technology, L’Oréal Luxe is inventing the future of beauty.
ScentSation: emotional profiling
Olfactory sensations are complex. As is understanding and expressing your preferences. With ScentSation, Yves Saint Laurent helps consumers choose their fragrance wisely. The brand developed a cuttingedge experience by combining technology and neuroscience to deliver personalised fragrance advice. Using a headset inspired by electroencephalography (EEG) technology, ScentSation records and analyses consumers’ emotional responses to different fragrance families, then recommends the perfume that suits them best. Launched at World Expo 2021, this groundbreaking innovation provides an unprecedented, sophisticated and ultrapersonalised experience for consumers: luxury incarnate.
Beauty Tech: the magic of augmented luxury
New technologies are expanding the horizons of traditional luxury to make every luxury product exclusive and personalised, with services such as customised engraving or bespoke formulas, like those from Rouge Sur Mesure by Yves Saint Laurent and Le Teint Particulier by Lancôme.
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Technology is also revolutionising the services provided by beauty advisors by giving them cuttingedge “diagnosis” tools powered by artificial intelligence. One example is Lancôme Skin Screen, which allows them to deliver an incredibly accurate additional skin “diagnosis” and recommend suitable beauty routines. The face of beauty is changing: more technology for more luxury.
Carita: the iconic Maison de Beauté undergoes metamorphosis
“We are the entrepreneurs of metamorphosis,” proclaimed Maria and Rosy Carita, founders of the celebrated Parisian beauty locale. In 2022, to complete this transformation and attain the most luxurious holistic experience, Carita reopened the doors to its iconic Faubourg Saint-Honoré location, following two years of innovative renovations. But the breakthroughs didn’t stop there. The brand completely revamped the Maison de Beauté as a point of sale to provide the most exclusive professional beauty experience. It also made ingenious changes to its beauty protocols, using instrumental cosmetics to enhance the iconic “Choreographic treatment” with Pro.Morphose R.F., a machine based on patented technology which is reinventing anti-ageing skincare. The spirit of innovation reached the brand’s products as well, with the OR Rejuvenic range, a regenerative anti-ageing protocol featuring 24K Biotech Gold – a subtle active ingredient that combines gold with microalgae.
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To rise to the challenges of preserving biodiversity, water and wildlife, the brands are investing in the future of the planet. Lancôme opened its Domaine de la Rose in Grasse to preserve biodiversity through responsible rose-growing and protect its expertise. Yves Saint Laurent launched Rewild our Earth to preserve and restore damaged natural ecosystems. In 2022, four projects got underway, with the goal of restoring 100,000 hectares by 2030. Lastly, Biotherm forged ahead with Water Lovers, its ocean conservation and marine biodiversity protection initiative. Its eponymous IMOCA sailboat recently set out, equipped with sensors and captained by Paul Meilhat, to gather scientific data. The brand also renewed its support for the Tara Ocean Foundation.
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Acquisitions strengthen the L’Oréal Luxe portfolio
The brands L’Oréal Luxe acquired in 2021 are already living up to their potential. Japanese skincare brand Takami, which takes inspiration from clinical dermatology, has already strengthened its position in its home market. Its iconic SkinPeel Keratin Treatment Essence, which Asian consumers have dubbed “the Little Blue Bottle”, is the number one bestselling skincare product in Japan, and the brand has set out to conquer the North Asia Zone, beginning with China.
High-performance skincare brand Youth To The People, based in California, is known for its innovative formulas made from pro-grade vegan ingredients. It launched several remarkable innovations in 2022, including Superfood Face Wash, which has been a hit with consumers in the United States. Its formulas are environmentally friendly and embraced by even the most demanding connoisseurs.
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