1. Presentation of the Group – Integrated Report
1.3 L’Oréal, a value-creating model1.3. L’Oréal, a value-creating model 
1.3.1. Business model
THE BEAUTY INDUSTRY
Outlook and challenges
A resilient, growing market
Beauty is an essential need for humanity
Increasing demand from the middle classes in emerging countries
Premiumisation of beauty
Increasing digitalisation towards the provision of personalised, connected and shared beauty solutions
CSR challenges
Need for an ecological and inclusive transition in the context of limited natural resources and climate change
Responsible marketing and advertising
Risks and opportunities
OUR SENSE OF PURPOSE (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 performance
Committed and qualified employees
Loyal shareholders and stable governance
Culture of ethics, based on four Principles: Integrity, Respect, Courage, Transparency
OUR STRATEGY
UNIVERSALISATION AND SINGULARISATION
Universalisation involves the globalisation of brands by taking regional characteristics into consideration in order to serve and retain 1.5 billion consumers.
Singularisation takes into account a growing global trend towards self-affirmation for both men and women by providing a diverse range of products and services and personalisation. The goal is to offer inclusive 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 EACH
L’Oréal aims to offer women and men around the world the best in cosmetics in terms of quality, effectiveness, safety, sincerity and responsibility in order to meet all their needs and all their beauty wishes in their infinite diversity.