Beauty & Personal Care Industry

Submitted To: Submitted By:

Dr. R Venkatesh
(Group 2)
Abhinav Rastogi
Archana Kumari Sahu
Kapil Tomar
Paritosh Sharma
Siddhant Chandel
Overview of the Industry

 The global Beauty and Personal Care market

is valued at 420 billion US$ in 2018.
 It will reach 716.3 billion US$ by the end of
2025, growing at a CAGR of 6.9% during
2019-2025.
 Middle East & African Region is expected to
grow with the highest CAGR in cosmetic
products market.
 US occupies the 20% market share of the
global consumption value owing to large
population and high economic growth rate.
 For the production, China is the largest
production region contributing to nearly
23%-25% market share.
Competition

 Monopolistic Competition
 A large number of companies exist with differentiated products having a certain degree of
control over pricing and competing within the same market size.

Barriers to entry

 Government Regulation
 Distribution Channels
 As the entry barriers are not too high, many companies can easily penetrate into the
market.
Industry Leader

 Mission: Beauty for All

“Offering all women and men worldwide the best of cosmetics innovation in terms of quality, efficacy and safety to
satisfy all their desires and all their beauty needs in their infinite diversity.”
 Strategies:
 Universalisation: It means globalization that captures, understands and respects differences. Differences in
desires, needs and traditions. To offer tailor-made beauty, and meet the aspirations of consumers in every part of
the world. L’Oréal is driven by this vision of the world.
 Content Strategy: L’Oréal has effectively built a full-scale online beauty magazine from scratch, engaging
fans with content that is as fresh as the faces it features.
 Social media strategy: L’Oréal has huge audience over social platforms with more than 22.5 million likes on
Facebook that on an average generates more than a thousand likes per post. It has 600K followers on Twitter,
51K subscribers on YouTube, 815k followers on LinkedIn.
 Success factors:
 Growing demand for anti-ageing products
 Innovative and eco-friendly packaging designs
 E-commerce channel influencing sales
 Growing demand for men’s grooming products
 Significant demand for multifunctional products

 Expanding the Market:

 Increased its reach from 140 countries in 2016 to 150 countries in 2017.
 473 patents registered in 2016
 No. of sales in New Markets was 40.5% in 2017 as compared to 39.4% in 2016.
 Sales in 2017 in Asia Pacific region also increased to 23.6% as compared to 22.6% in 2016.
“As it faces dynamic niche brands, the company is stepping up acquisition activity and alliances with beauty tech
start-ups to renew its portfolio and innovative strategy.”
Challenges

 Managing the diverse product line and the

diversified customer base efficiently and
effectively.
 Improving the sustainability of the business.
 Offering both sustainable and desirable
products to make it easier for the consumers to
make the right choices.
Recommendations
 Promoting the new products correctly, according to the right type of audience to build a strong
customer relationship for the long run.
 L’Oreal can adopt a new and fresh image for its products. Most probably taking branding to
whole new level.
 They can also opt for a delivery service, this will delight customers since they don't have to
run to the stores to get their items.
 For endorsements not only celebrities should be hired but also a health expert. This will give a
huge boost in customer confidence towards a product.
 L’Oreal should include men make up products, because right now they have more women
products.
Thank you!