The L’Oréal Luxe supply chain with its staff of over 1500 across the globe plays a double role. It first guarantees proper deployment of the division’s brands, in other words, it ensures that the same product is available at the same time everywhere around the world. Next it must give consumers a luxury experience: this experience involves exceptional products of course, but also exceptional shopping moments where the point of sale is a theatre that showcases its products, advice, merchandising, testers, samples, etc. In fact, perfect control of point-of-sale execution is the ultimate purpose of the supply chain.
This demand for quality and perfection must be sought at the best cost, optimising use of the company’s assets, industrial investment, stocks and customer credit. It is backed by sales forecasts and revenue building on each of our markets in close collaboration with the division’s business departments and retail clients. At the other end of the chain, it is backed by the suitability of our industrial resources to actual sales flows, the same being applicable to our suppliers. It requires information sharing at each link in the chain and its updating as sales evolve in order to build a worldwide supply and demand equation.
Did you know?
1/ L’Oréal Luxe recorded an 8.3% growth increase in 2012 on comparable data and a 16% growth rate on published data. For each quarter, the division out-performed market growth in particular, due to the success of Lancômeand the strong performances in Asia and North America.
2/ L’Oréal Luxe is currently number one in the world fragrance market. Among other product launches, the successful launch of Lancôme's La Vie est Belle in 2012 reinforced the brand’s leading position. In fact, Lancôme's La Vie est Belle was the biggest world launch in the women's fragrance market in 2012.
3/ The "Made in" label is vital for the luxury industry. It is synonymous with craftsmanship and expertise. While most of the group's luxury brands are produced in France, the American brand Kiehl's is made in the USA and the Japanese brand Shu Uemura in Japan, so as to respect these brands' historic origins.