L’ORÉAL IS BEGINNING TO CONQUER NEW MARKETS

For several years, Asiatic and Africans are the new targets of L’Oréal as regards marketing. Number one on the worldwide cosmetics market, this French company is not content anymore with selling products to “white consumers”. To reach news consumers, L’Oréal repurchase cosmetics brands, modify their packaging and change their marketing strategies to “rejuvenate” the image of its new products.In the United States, L’Oréal has taken an interest in the ethnic minorities. Five years ago, to find market shares in this market monopolized by black companies, L’Oréal bought two of them: SoftSheen and Carson. By merging both companies, L’Oréal was able to launch products outside the United States. That’s why, after such a success in the United States, L’Oréal is looking for selling its products in Africa. This market represents one milliard of potentials consumers who have African origins and according to Alain Evrard, general manager of the Africa section, L’Oréal must not neglect it. With the merging of SoftSheen and Carson, L’Oréal is present in South Africa with a receipt of $90 millions and a market share of 41% in 2002. Nowadays, L’Oréal would like to be present in others Africans Countries with the same result. In addition of Africa, L’Oréal tries to conquer the Chinese market. This French group wants to speed up its expansion on this market. That’s why, L’Oréal bought two Chinese cosmetics brands: Xiaohushi (December 2003) and Yue-Sai (February 2004). The group hopes by this acquisition become number two on the Chinese market.With such a strategy, L’Oréal realized a turnover of €14.53 milliards in January 2005, in others words an increase of 2 figures for 20 years running. L’Oréal became the giant worldwide of beauty preparations.