What were the strategic drivers behind the best year of growth in more than 30 years? Alexis Perakis-Valat, President, Consumer Products, looks back on the highlights of 2023.
The Consumer Products Division celebrated its 50th birthday in 2023. And we’re only getting better with age, as we continue to democratise and premiumise beauty.
The key figure of the year
12.6% — That’s our like for like growth this year, and it’s our best in more than three decades. What’s significant is not just the achievement, but the trend: we’ve been accelerating each of our last 3 years, which gives us great momentum for the future.
2023 in three keywords
Innovation because it was another ‘grand cru’ of launches from our Brands. From Bond Repair by L’Oréal Paris, a new breakthrough science for haircare, to Garnier Good, a reinvention of at-home hair color. Make up has also been on fire with Maybelline’s Vitamin C fresh tint, L’Oréal Paris’ Matte resistance lipstick, and NYX Professional Makeup’s Fat Oil gloss.
The second word is balance, because so many of our teams and markets all across the world have contributed to our success. Each of our four international brands is growing by double digits, and all categories are very dynamic. Our performance was also very balanced between volume and value. We brought together strong price growth with continued volume and mix growth, which means we’re delivering on our mission to democratise and premiumise the mass beauty market.
The last and most important word is talent. Because the talent and passion of our people are at the very heart of our success. This year, we continued to modernise our ways of working with more agility and empowerment to really unlock the human magic in our teams.
The beauty trend of the year?
2023 was a year for beauty connoisseurs, as consumers all over the world became more expert and demanding in their beauty desires. Thanks to social media and digital tools, people have more beauty information and expertise to fuel their new expectations.
What are you most proud of this year?
The incredible power of our brands. This year, we saw the aspirational impact of our brands on people all over the world. From grand displays like L’Oréal Paris’ Le Defile under the Eiffel Tower, to intimate moments like a woman’s pride and confidence as she applies her favorite lipstick. That’s the power of beauty, and our Brands are bringing it to more people than ever.
What progress in Beauty Tech?
Beauty Tech in the Consumer Products Division is a great way to put a beauty advisor in the pocket of billions of consumers. An excellent example this year was Maybelline New York’s collaboration with Microsoft Teams to create virtual makeup looks for calls and meetings. 300 million users of Teams around the world can now virtually try on Maybelline makeup with just a click, then later replicate the looks in real life.
What advances in sustainability?
Sustainability is at the core of our strategy, and this year we continued our transformation on many fronts. We’re accelerating our use of recycled plastics, and at the same time, revamping some iconic bottles to be lighter and greener.
Another major achievement has been scaling our social causes, where we are smashing our expectations. Stand Up by L’Oréal Paris trained 1 million people this year alone in the fight against street harassment. And Maybelline’s Brave Together program has provided 800,000 people with mental health support.
How is Consumer Products prepared for the future?
Our Division is prepared because we’re hyper focused on what matters most:
- constantly reinventing our aspirational brands, to stay in tune with the trends and desires of consumers today, and tomorrow.
- perfecting our execution, all along the value chain. We’re upgrading our digital advocacy, and leveraging our retail partnerships, to transform the mass beauty shopping experience.
What are the most attractive opportunities for your Division?
Today, our Division has a once-in-a-lifetime opportunity in our Emerging Markets of Southeast Asia, the Middle East, Africa, and Latin America. The results have already started, as Emerging Markets account for about one-third of our growth this year. And this is just the tip of the iceberg! These markets are booming with young, digital, and beauty savvy consumers, particularly in our core target of the upper half of the middle class. By 2030, Emerging Markets will be home to over 40% of that target, that’s 1 billion consumers! This is a major growth reservoir for years to come. With our aspirational Brands and innovation ethos, we are uniquely positioned to seize this tremendous opportunity.