What is L’Oréal’s winning strategy to remain the global beauty leader?
Beauty has been the sole focus of our business, our expertise and our passion for nearly 115 years. L’Oréal’s success is underpinned by its strategy to be a pure player in beauty. We often talk about six key pillars: the power of our Research & Innovation, with 4,000 researchers worldwide; our unique portfolio of 37 diverse and complementary global brands, 11 of which already have sales of more than €1 billion; our unrivalled digital leadership, with continuous e-commerce growth; and our industrial capabilities, with 38 plants worldwide. What is more, prudent management of our financial performance has enabled us to improve profitability and invest in future growth drivers. Lastly, we are proud of the unwavering commitment of our 87,400 employees, all of whom share the same culture, strong values and purpose: create the beauty that moves the world. L’Oréal is also among the five most attractive companies in France(1) .
For L’Oréal, extra-financial performance is inseparable from economic performance. Our strong results allow us to continue investing in our social and environmental commitments, in line with our L’Oréal for the Future sustainability targets for 2030.
What makes L’Oréal such a solid investment?
Beyond our track record of outperforming the market, we are confident in the growth prospects for the beauty market in 2023 and beyond. With a 14% share of the global market, there is still significant scope to expand, especially in emerging countries and in new categories of products and services.
The stability of the Group’s governance allows us to devise and deploy a long-term strategy. L’Oréal has proven itself a resilient growth investment. Meanwhile, the Group continues to pursue a dynamic shareholder policy, with a steady increase in dividends since 1973. Total shareholder return as of 31 October 2023 was +16.1% over 5 years and +13.8% over 10 years.
(1) 2022 Universum ranking of the most attractive employers based on a survey of business schools in 10 countries.
Expert testimonials
With its Beauty Tech transformation, L’Oréal augments its offer with online services and innovative devices. We create the Beauty of the Future, offering personalised, sustainable, and inclusive beauty experiences. In constant alignment with consumers’ individual needs, enforcing our “beauty for each” objective, our transformation is also paving the way for new business models.
With 4,000 researchers worldwide, L’Oréal is the largest research powerhouse in the cosmetics industry, allowing us to provide our brands and consumers with the very best in beauty science.
L’Oréal is capitalising on technology innovations, particularly Artificial Intelligence. We develop services for our consumers as well as strategic tools for our employees — truly disruptive revolutions in our ways of working that create tangible value for L’Oréal.
Spotlight on L’Oréal’s industrial strength
Antoine Vanlaeys, Group Chief Operations Officer, shared his perspectives on the central role of Operations during an interview with Boursorama’s Laurent Grassin in December.
L’Oréal is a 114-year industrial Group which has created and continues to create the industry of the future by combining performance, science and technology, sustainability and inclusivity. The know-how, operational excellence and unique expertise of our teams, together with our global industrial network, ensure our resilience and responsiveness in a highly volatile global context.
