Three major trends drove business for L’Oréal and the global
cosmetics market in 2015:
• The swift expansion of makeup driven by digi-
• The dynamism of high-end channels; and
• The rise of the middle class in new markets.
Each helped the company register gains across
the world and across its portfolio. Sales rose 3.9%
in euros. Skin care accounted for 29.6% of sales followed by makeup ( 23.8%), hair care ( 19.7%), hair
color ( 12.7%), fragrance ( 9.8%) and other ( 4.4%).
By division, consumer product sales rose 10%
and accounted for 48.7% of sales. Makeup performed best with a gain of 9.3%, well ahead of hair
care’s 1.6% sales increase. In contrast, hair colorant
sales fell 2.3% and skin care sales dropped 1.4% in
L’Oréal Luxe reported a 16.7% increase in sales,
representing 29.8% of corporate sales. Makeup
led the way, with a 28.8% increase, but skin care
(+ 13.4%) and fragrances (+ 12.7%) both posted double-digit increases.
Similarly, Professional Products posted a 12.1%
sales increase and accounted for 14.0% of sales.
Shampoo and hair care sales were up 13.7%, hair
colorant sales rose 10.9%, and styling sales increased 7.8%.
Active Cosmetics’ sales rose 9.4% to represent
7.5% of sales in 2015, but division results were a
mixed bag. While skin care (+ 12.3%) and “other”
(+ 5.6%) showed significant improvements, hair
care (- 6.2%) and makeup (- 4.6%) results were
The Body Shop’s sales rose 5.7% last year, even as the total
number of stores fell 17% to 3, 102.
At the close of 2015, L’Oréal was present in 140 countries on
all five continents—all of which posted sales gains. By region,
Western Europe accounted for 33.1% of sales. The group out-
performed the market, especially in Southern Europe and gains
were also recorded in the UK and Germany. Garnier provided a
lift in an otherwise sluggish mass channel.
In North America, which represented 27.4%
of sales, revenues were helped along by double-digit gains for Urban Decay, Kiehl’s and
Yves Saint Laurent. Redken was the key reason for improving sales within the professional products division. Meanwhile, sales of NYX
and Maybelline New York helped lift consumer
product division sales.
L’Oréal said “new markets” represented
39.5% of sales. That broadly brushed category
can be segmented as:
• Asia-Pacific, 22.5%,
• Latin America, 7.7%;
• Eastern Europe, 6.3%; and
• Africa, Middle East, 3.0%.
Asia-Pacific results were mixed, as Hong
Kong remained difficult but Japan recovered in
Q4. Consumer Products division sales were up in
India, Australia and Thailand.
Brazil remained a drag on Latin American results. But if the biggest market in the region could
somehow be excluded, Latin America posted
double-digit gains, helped along by strong demand for products within the active cosmetics and
luxe divisions, according to L’Oréal.
In Eastern Europe, sales in Russia, Turkey and
Ukraine helped the consumer, professional and luxe
divisions all post double-digit gains.
Double-digit gains in Africa, Middle East were
due, in large part, to fast growth in Egypt, Pakistan
and Saudi Arabia. This year, the company is opening
a new research center in South Africa.
To keep the innovations coming around the world, L’Oréal
spent €794 million on R&D in 2015, which helped the company
register 497 patents.
For the first quarter of 2016, sales rose 1.8% to $6.5 billion.
North America provided the biggest lift, as sales rose 5.8% in
• Driven by demographic trends in new markets, new needs linked to urbanization and new consumer desires fueled by social networks,
global beauty sales rose 3.9% to €203 billion last year, a slight improvement over the 3.6% gain posted in 2014, according to L’Oréal.
By region, Asia-Pacific accounted for more than one-third of sales ( 36.2%), followed by North America ( 24.0%), Western Europe ( 20.2%), Latin
America ( 10.5%), Eastern Europe ( 6.0%) and Africa, Middle East ( 3.0%).
What are folks around the world buying with their dinars, euros and dollars? Skin care, primarily, which accounted for 36.1% of sales. That’s well
ahead of the No. 2 product category, hair care ( 22.9%), and makeup ( 17.3%).
With sales of nearly € 30 billion, L’Oréal is the market leader in the world of beauty, followed by Unilever, Procter & Gamble, Estée Lauder and Shiseido.
A BEAUTIFULLY CONNECTED WORLD
Just in time for
Summer, L’Oréal rolled
out Sublime Bronze