- STRENGTH OF BRAND: Quality and value-added skin care brands meet consumer needs.
- INNOVATION: Investment in R&D produces science-based innovations.
RETAILERS RECOGNIZE L'Oreal Paris as the industry leader in skin care. The beauty company addresses consumers' changing needs with new branded formulas. This year, for example, it rolled out an anti-sagging and hydrating facial cream under the Dermo-Expertise Age Perfect brand.
The company invests heavily in R&D research. Last year, R&D investments represented 3.5% of sales. Moving into the first half of the year, L'Oreal increased R&D expenses by 7.6% over the first half's prior year. This has allowed L'Oreal to constantly fill the pipeline with innovative products such as Collagen Micro-Pulse Eye Cream and Massager to reduce dark circles.
This year, it launched its Go 360 Clean with a removable scrublet in the bottle. “The scrublet appears to be a clever innovation that may give this product a leg up over the other products in the category, assuming the scrub pad meets expectations,” notes Datamonitor.
Retailers pointed to L'Oreal's heavy investment in marketing, advertising and promotions to build the skin care category at retail. First-half advertising and promotional expenses were up 12% over first-half 2009, according to company figures.
Last year, L'Oreal celebrated its 100th anniversary and set a goal of winning 1 billion new consumers in the next decade. It will do this by continuing to invest in product innovation and marketing.