Message from Omar Hajeri

In 2022, we completely reinvented the L’Oréal Professional Products Division!

2022 in three keywords?

“Disruption”, “opportunity” and “ambition”.

What were the main achievements of the Professional Products Division in 2022?

In 2022, our Division saw yet another year of exceptional performance. We outperformed the market in all zones. In our historical key regions: in North America, thanks to our powerful SalonCentric distribution network and strong growth in ecommerce and specialty retail; and in Europe, with impressive growth in our main markets and a strong rebound in salons. Our growth markets also showed substantial growth: mainland China has become our second country worldwide, and there is still strong potential in many cities. India is now our fifth-biggest country worldwide, where ecommerce is only beginning.

We outperformed the market in our two key categories: haircare and hair colour, fuelled by breakthrough innovations and supported by the breadth of our brand portfolio. From Kerastase and L’Oréal Professionnel to Redken, Matrix, Biolage, Pureology, Shu Uemura, Mizani and Pulp Riot, we have the strongest portfolio of professional brands in the industry, covering all hair needs at all price points.

In haircare, for the first time, Kerastase passed the symbolic billion-euro mark and keeps accelerating through the ongoing success of its two blockbusters: Genesis and Blond Absolu. Spurred by our Metal Detox disruptive innovation in haircare, L’Oréal Professionnel recorded double-digit growth. In hair colour, growth is driven by our blockbuster range Shades EQ by Redken, enhanced by powerful innovations like our Shades EQ Bonder Inside.

What is behind the Professional Products Division’s success?

Our performance since 2019 is the result of our winning strategy, based on two major transformations in our business model.

First, a reinvented relationship with consumers. Today, our Division is truly omnichannel. In order to recruit new consumers at scale in premium haircare, we continue to capitalise on our strong salon footprint, where we leverage the fantastic power of stylists’ advocacy and professional expertise. We go further by accelerating in e-commerce and we’re progressively extending our distribution in specialty retail. E-commerce and specialty retail now represent 30% of our total turnover.

Our second key transformation is a reinvented relationship with hairstylists. We continuously adapt to an ever-evolving market, characterised by the rise of independent stylists. We capitalise on our offline capabilities while enhancing our online capabilities. Digital now drives our relationship with salons and stylists. We digitalised our commerce, thanks to our B2B ordering platform, L’Oréal Partner Shop. We digitalised our education thanks to our online academy, L’Oréal Access. In the US, we recently launched the first-ever marketplace dedicated to beauty professionals. This platform offers stylists an extended range of products and services by leveraging an ecosystem of best-in-class industry suppliers. As the industry leader, we continue to drive the transformation of the industry thanks to powerful digital innovation, coupled with a deep commitment to sustainability and diversity.

What about environmental and social performance?

As an industry leader, the Professional Products Division has been deeply committed to sustainability for many years. 94% of our products are made in carbon-neutral plants and 44% are made in waterloop factories that recycle water from the production phase. In terms of packaging, the full range of L’Oréal Professionnel Serie Expert bottles are now recyclable and made from up to 95% recycled plastic. By 2030, 100% of the plastics used in our packaging will be either from recycled or bio-based sources. In salons, we’re going even further by engaging our hairstylist community in the sustainability journey: Our “Hairstylists for the Future” programme focuses on three main pillars: reducing water consumption, managing waste and reducing energy. In 2023, we will do even more with the deployment of L’Oréal Water Saver.

What key developments can we expect in 2023?

The Professional Products Division – totally reinvented, more inclusive, truly omnichannel, more digital and more data-driven – will continue to lead the professional industry. We stay true to our mission: bring professional-quality hair results to all by leveraging the expertise and creativity of hairstylists around the world. In 2023, thanks to our profound transformation, our acceleration in emerging countries, our solid innovation plan and our talented teams, we’re ready to continue our growth momentum and are ready for the future.