2023 universal registration document

Furthermore, in a context of accelerated digitalisation of consumption, production, distribution and communication methods, the Group anticipated the global impact these transformations will have on its structure by continuing to develop its employees’ skills in these areas, as well as by recruiting new expertise, particularly in the field of technology. Thanks to its various actions, L’Oréal is eighth in the worldwide ranking of most attractive employers to future business school graduates⁽¹⁾Universum ranking. This makes the Group the highest-ranked European Union company.

Ongoing structural transformation to rationalise and identify synergies

In spring 2020, L’Oréal launched an initiative entitled NEXT to simplify its structures with a view to a post-Covid world. This work involves simplifying the organisation by creating five internal shared service centres and seven geographic areas, reviewing the brand portfolio of each Division on an annual basis, and finally, simplifying the number of products in each brand’s catalogue to reduce complex manufacturing and research.

1.3.7. The mission of the Research department: responsible, inclusive innovation, in absolute safety

The cosmetics market is driven by supply and innovation. L’Oréal’s success is fed by its permanent obsession for innovation, which feeds into its performance in all its forms.

With nearly 4,200 researchers and spending of approximately 3% of sales, L’Oréal has the top R&I force in the cosmetics industry. This is a considerable asset, with a level of expertise and a wealth of unique scientific and technical data. The performance, security and absolute safety of ingredients, the superior quality of the products and the sincerity of their claims are the fundamentals that inspire the Group’s laboratory teams every day.

From upstream to downstream

Advanced Research teams create, develop and source raw materials, drawing on the knowledge of skin and hair from around the world. The Application Domains teams develop formula architectures that improve the performance of active ingredients. The Development Laboratories create innovative formulas with a proven superiority for each brand. This innovation model is nurtured by a constant dialogue between the laboratories and marketing to respond to the expectations of consumers, supporting them with the latest scientific and technological breakthroughs.

Research facilities around the world

In order to adapt to consumer expectations worldwide, L’Oréal’s Research teams work in 20 cosmetics research centres and 13 assessment centres. The research centres are grouped into three global centres in France and 6 regional hubs⁽²⁾Global centres in France: Advanced Research, Haircare and Cosmetics. Regional hubs: Japan, US, China, India, South Africa and Brazil. that identify consumer needs and study their beauty regimes. R&I teams build on this rich seam of local scientific ecosystems to develop collaboration agreements and partnerships of excellence. The data generated enables researchers to develop new beauty products or experiences, that are in tune with market needs and local expectations.

R&I: A VAST ECOSYSTEM OPEN TO THE WORLD