2022 Universal Registration Document

1.2. L’Oréal, a value-creating model

Chapter 1 : Presentation of the Group – Integrated Report

1.2. L’Oréal, a value-creating model

1.2. L’Oréal, a value-creating model

1.2.1. Business model

THE BEAUTY INDUSTRY

Outlook and challenges

A resilient, growing market

Significant need for beauty post-Covid

Increasing demand from the middle classes in emerging countries

Innovative beauty

Increasing digitalisation towards the provision of personalised, connected and shared beauty solutions

CSR challenges

Consumer engagement and changes in behaviour are essential

Need for an ecological and inclusive transition in the context of limited natural resources and climate change

Responsible marketing and advertising

OUR SENSE OF PURPOSE (“NOTRE RAISON D’ÊTRE”)

Create the beauty that moves the world

OUR STRENGTHS

No. 1 IN BEAUTY

Our sole business: beauty, nothing but beauty and all beauty


A unique portfolio of brands


A balanced, multi-polar model (Zones, Divisions, categories, distribution networks)


A global industrial footprint


Steady and sustainable economic and financial performance


Recognised social and environmental (See 1.2.5) performance


Committed and qualified employees


Loyal shareholders and stable governance


Culture of ethics, based on 4 Principles: Integrity, Respect, Courage, Transparency

OUR STRATEGY

GLOCALIZATION

This is the globalisation of its brands with a detailed understanding and respect for local differences.

The goal is to offer beauty by responding to the specific aspirations of consumers in every region of the world.

In contrast to standardisation, it is based on careful attention to consumers and a deep respect for their differences.

BEAUTY FOR ALL

L’Oréal’s ambition is to offer women and men around the world the best in cosmetics in terms of quality, responsibility, effectiveness, sincerity and safety, in order to meet all their needs and beauty wishes in their infinite diversity.