Organization

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To ensure its development, L’Oréal relies on global Research and Innovation, a unique portfolio of brands organized by distribution channel, and integrated industrial production.

Organization
Organization

Research in L’Oréal’s genetics

Research is part of L’Oréal's DNA

L’Oréal has always made major investments in research and puts cosmetic innovation at the very center of its model for growth. With over 130 molecules developed over the past 40 years, the group is exceptional in its ability to patent major active ingredients well in advance of competitors. L’Oréal has organized its Research and Innovation around six regional platforms (Europe, United States, Japan, China, Brazil, India). In each major region of the world, these poles integrate the activities of research, "development expertise" and "market fundamentals". Their mission is also to understand the habits, needs and criteria for preferences of local populations where beauty is concerned. Thanks to this interaction between research and marketing, L’Oréal is able to offer cosmetic products that are adapted to different skin types, hair types and cultures.

A rich and diversified brand portfolio

A portfolio or rich, diverse brands

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L’Oréal is richly endowed with a portfolio of international brands that is unique in the world and that covers all the lines of cosmetics: hair care, coloring, skin care, make-up and perfume. Very complementary, these brands are managed within the group by divisions that each have expertise in their own distribution channel. This organization is one of L’Oréal's major strengths. It makes it possible to respond to the every consumer's expectations according to his or her habits and lifestyle but also to adapt to local distribution conditions, anywhere in the world.

  • The Consumer Products Division offers the best in cosmetics innovation to the greatest number of people on every continent. Its brands are available in mass-market channels (hypermarkets, supermarkets, drugstores and traditional stores). The division is the spearhead of the group’s quest to win over a further billion consumers. L’Oréal Paris - Garnier - Maybelline New York - Softsheen-Carson - Essie
  • L'Oréal Luxe offers both men and women throughout the world an array of prestigious and modern international brands with a unique heritage. The brands of L’Oréal Luxe strive to promote the different specialities of luxury beauty: skincare, make-up and fragrances.
    They also set out to offer high-quality products through a selective distribution channel, and provide excellent service that respects the diversity of its consumers. Lancôme - Giorgio Armani - Yves Saint Laurent - Biotherm - Kiehl’s - Ralph Lauren - Shu Uemura - Cacharel - Helena Rubinstein - Clarisonic - Diesel - Viktor & Rolf - Yue Sai - Maison Martin Margiela - Urban Decay - Guy Laroche - CARITA - Active Cosmetics Division's mission is to help everyone improve the quality and health of their skin, whether they are affected by sensitive skin or dermatological conditions, in all health care channels worldwide: pharmacies, beauty and health retailers, drugstores and medi-spas. Thanks to its highly complementary brands, and its close links with health professionals, dermatologists, paediatricians and doctors practising aesthetic medicine, the division is world number one in dermocosmetics(1).
    (1) Source: Panels and L’Oréal 2013 estimates. Vichy - La Roche Posay - SkinCeuticals- Innéov - Roger&Gallet - Sanoflore
  • The Body Shop, true to its pioneering spirit, combines innovation, sensory experience and performance, while maintaining their values, in particular with regard to fair trade and environmental protection. In fact, it is the first brand to have introduced fair trade into the Beauty industry. Its products are distributed mainly through a network of exclusive boutiques.

An integrated production mode

Internal production means

L’Oréal made the decision to integrate its production facility. Established around the world, its 40 factories produce 87% of the units of cosmetic products sold.

A guarantee of quality and traceability, this model makes it possible to reduce risks and optimize the industrial tool. A single unit, the Operations Division, steers worldwide production and product distribution. It unites 7 lines of business − sourcing, production, quality, environment-health & safety, supply chain, packaging & development, and real estate − and it oversees the whole production chain, from purchasing raw materials to product delivery.

To become more responsive and adapt to the specifics of local markets, the industrial tool is spread out over five major geographical zones. This proximity reduces the distance that separates consumers from the factories and ensures them access to products at the best possible price. The group also bases its industrial success on its exacting criteria in the selection of suppliers with whom it creates long-term partnerships and joint ventures for innovation.